Equities Analysts Issue Forecasts for IBM FY2027 Earnings

Key Points

• Zacks Research has revised its earnings forecast for IBM for FY2027 downward to $12.58 per share, slightly decreasing from a previous estimate of $12.64.
• Analysts have mixed views on IBM, with a range of ratings from a "Strong Buy" to a "Sell," contributing to an average rating of "Hold" and a consensus price target of $268.75.
• IBM reported $2.80 EPS for its latest quarter, exceeding expectations, with revenues of $16.98 billion, marking a 7.7% increase year-over-year.

International Business Machines Corporation (NYSE:IBM - Free Report) - Analysts at Zacks Research decreased their FY2027 earnings per share (EPS) estimates for International Business Machines in a research report issued on Monday, August 18th. Zacks Research analyst Team now anticipates that the technology company will post earnings per share of $12.58 for the year, down from their prior estimate of $12.64. The consensus estimate for International Business Machines' current full-year earnings is $10.78 per share.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.65 by $0.15. The business had revenue of $16.98 billion during the quarter, compared to the consensus estimate of $16.58 billion. International Business Machines had a return on equity of 37.62% and a net margin of 9.11%.The firm's quarterly revenue was up 7.7% on a year-over-year basis. During the same period in the previous year, the company posted $2.43 EPS. International Business Machines has set its FY 2025 guidance at EPS.

A number of other equities analysts have also commented on the stock. BMO Capital Markets raised their price target on shares of International Business Machines from $260.00 to $300.00 and gave the stock a "market perform" rating in a research report on Friday, July 18th. Wall Street Zen upgraded shares of International Business Machines from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. KGI Securities set a $242.00 price target on shares of International Business Machines and gave the company a "hold" rating in a research report on Thursday, April 24th. JPMorgan Chase & Co. boosted their price target on International Business Machines from $244.00 to $290.00 and gave the company a "neutral" rating in a research note on Thursday, July 24th. Finally, Bank of America reduced their price target on International Business Machines from $320.00 to $310.00 and set a "buy" rating on the stock in a research report on Thursday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, International Business Machines currently has an average rating of "Hold" and a consensus price target of $268.75.

International Business Machines Stock Performance

Shares of IBM traded down $3.3430 during midday trading on Wednesday, reaching $239.2070. 2,989,468 shares of the stock were exchanged, compared to its average volume of 6,556,374. The stock's 50 day simple moving average is $270.32 and its 200 day simple moving average is $258.17. The company has a market cap of $222.32 billion, a P/E ratio of 38.83, a PEG ratio of 3.73 and a beta of 0.69. International Business Machines has a twelve month low of $194.39 and a twelve month high of $296.16. The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 2.00.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in shares of International Business Machines by 2.1% in the 2nd quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company's stock valued at $28,019,274,000 after purchasing an additional 1,913,708 shares in the last quarter. State Street Corp increased its position in International Business Machines by 0.3% during the 2nd quarter. State Street Corp now owns 54,536,963 shares of the technology company's stock worth $16,076,406,000 after purchasing an additional 147,721 shares in the last quarter. Geode Capital Management LLC lifted its stake in International Business Machines by 1.9% in the 2nd quarter. Geode Capital Management LLC now owns 21,936,235 shares of the technology company's stock valued at $6,444,527,000 after purchasing an additional 400,131 shares during the last quarter. Northern Trust Corp boosted its position in International Business Machines by 18.6% in the fourth quarter. Northern Trust Corp now owns 10,845,993 shares of the technology company's stock valued at $2,384,275,000 after buying an additional 1,704,209 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in International Business Machines by 6.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,636,725 shares of the technology company's stock valued at $2,147,608,000 after buying an additional 524,633 shares in the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.