What is Erste Group Bank's Estimate for IBM FY2027 Earnings?

Key Points

• Erste Group Bank slightly lowered its FY2027 EPS estimate for IBM to $13.46 from $13.49, while keeping a Hold rating on the stock.
• IBM’s latest quarterly results beat expectations, with EPS of $1.91 versus $1.81 expected and revenue of $15.92 billion versus $15.60 billion expected. Revenue rose 9.5% year over year.
• Analyst sentiment remains cautiously positive overall: IBM has a Moderate Buy consensus and an average price target of $294.41, even as some firms trimmed targets and the stock trades below its recent highs.

International Business Machines Corporation (NYSE:IBM - Free Report) - Erste Group Bank cut their FY2027 earnings per share estimates for shares of International Business Machines in a report issued on Tuesday, May 5th. Erste Group Bank analyst H. Engel now anticipates that the technology company will post earnings per share of $13.46 for the year, down from their previous forecast of $13.49. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for International Business Machines' current full-year earnings is $12.40 per share.

International Business Machines (NYSE:IBM - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping the consensus estimate of $1.81 by $0.10. The business had revenue of $15.92 billion during the quarter, compared to analysts' expectations of $15.60 billion. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business's revenue for the quarter was up 9.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.60 EPS.

A number of other research analysts also recently commented on IBM. HSBC raised shares of International Business Machines from a "reduce" rating to a "hold" rating and raised their target price for the company from $218.00 to $231.00 in a research report on Tuesday, April 28th. Evercore increased their price objective on shares of International Business Machines from $330.00 to $345.00 and gave the company an "outperform" rating in a research note on Thursday, January 29th. Citigroup started coverage on shares of International Business Machines in a report on Friday, April 10th. They set a "buy" rating and a $285.00 price objective on the stock. Weiss Ratings downgraded shares of International Business Machines from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, May 4th. Finally, Jefferies Financial Group lowered their target price on International Business Machines from $370.00 to $320.00 and set a "buy" rating for the company in a report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $294.41.

International Business Machines Stock Performance

IBM stock opened at $229.39 on Monday. International Business Machines has a 1-year low of $220.72 and a 1-year high of $324.90. The business has a 50-day moving average price of $243.05 and a 200 day moving average price of $277.83. The company has a market capitalization of $215.60 billion, a P/E ratio of 20.28, a PEG ratio of 2.38 and a beta of 0.58. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76.

International Business Machines Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be given a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Friday, May 8th. This is an increase from International Business Machines's previous quarterly dividend of $1.68. International Business Machines's payout ratio is presently 59.77%.

Insider Activity at International Business Machines

In other news, Director Michael Miebach acquired 434 shares of International Business Machines stock in a transaction that occurred on Wednesday, February 25th. The stock was purchased at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the purchase, the director directly owned 434 shares in the company, valued at $101,265.22. The trade was a ∞ increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. 0.27% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On International Business Machines

Several institutional investors and hedge funds have recently bought and sold shares of the company. Family CFO Inc purchased a new position in International Business Machines during the 4th quarter worth $25,000. Basepoint Wealth LLC purchased a new stake in International Business Machines in the fourth quarter valued at about $25,000. Portus Wealth Advisors LLC acquired a new stake in International Business Machines in the first quarter worth about $26,000. Mountain Hill Investment Partners Corp. acquired a new stake in International Business Machines in the third quarter worth about $28,000. Finally, Joseph Group Capital Management purchased a new stake in shares of International Business Machines during the fourth quarter worth about $28,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines News Roundup

Here are the key news stories impacting International Business Machines this week:

• Positive Sentiment: IBM used its Think 2026 conference to highlight progress in artificial intelligence and quantum computing, including productivity gains from AI and signs that quantum advantage may be approaching sooner than expected. That reinforces the company’s long-term growth narrative. IBM touts AI productivity gains and quantum milestones at Think conference
• Positive Sentiment: A new report on IBM’s quantum push said the company demonstrated a major accuracy breakthrough, helping show that its quantum efforts are moving beyond theory and toward commercial relevance. IBM’s Quantum Push Gets Real with 210x Accuracy Breakthrough
• Positive Sentiment: IBM was also mentioned in broader commentary about the AI build-out and in sector coverage of AI infrastructure, which keeps the company in the conversation as investors look for “pick-and-shovel” beneficiaries of AI spending. 8 Stocks on Jim Cramer’s Mad Money Recap: IBM, Corning, and AI Rally Strength
• Neutral Sentiment: Several articles note that IBM is attracting investor and analyst attention, suggesting traders are reassessing the stock’s prospects, but these items do not add a clear new catalyst on their own. International Business Machines Corporation (IBM) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Analyst commentary remains cautiously optimistic, with Wall Street still viewing IBM as a potential long-term winner even though the stock has lagged the broader market over the past year. Are Wall Street Analysts Predicting International Business Machines Stock Will Climb or Sink?
• Negative Sentiment: Recent coverage also highlighted IBM’s sharp six-month decline and concerns that AI advances could threaten parts of its legacy business, which may be weighing on sentiment. IBM Plummets 27% in 6 Months: Should You Reassess the Stock?

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

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