Zacks Research Issues Optimistic Outlook for IBM Earnings

International Business Machines Co. (NYSE:IBM - Free Report) - Equities researchers at Zacks Research upped their Q2 2025 EPS estimates for International Business Machines in a report issued on Wednesday, May 14th. Zacks Research analyst R. Department now anticipates that the technology company will post earnings per share of $2.64 for the quarter, up from their prior estimate of $2.63. The consensus estimate for International Business Machines' current full-year earnings is $10.78 per share. Zacks Research also issued estimates for International Business Machines' FY2025 earnings at $10.82 EPS.

International Business Machines (NYSE:IBM - Get Free Report) last issued its quarterly earnings results on Wednesday, April 23rd. The technology company reported $1.60 earnings per share for the quarter, topping analysts' consensus estimates of $1.42 by $0.18. The company had revenue of $14.54 billion for the quarter, compared to analyst estimates of $14.41 billion. International Business Machines had a return on equity of 38.99% and a net margin of 9.60%. The business's revenue for the quarter was up .5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.68 EPS.

Other equities research analysts also recently issued reports about the stock. Bank of America boosted their target price on shares of International Business Machines from $260.00 to $270.00 and gave the company a "buy" rating in a report on Thursday, January 30th. Citigroup reiterated an "outperform" rating on shares of International Business Machines in a research note on Saturday. UBS Group restated a "sell" rating and set a $170.00 target price (up from $160.00) on shares of International Business Machines in a research note on Wednesday, April 23rd. Morgan Stanley dropped their price objective on International Business Machines from $237.00 to $233.00 and set an "equal weight" rating on the stock in a report on Thursday, April 24th. Finally, Jefferies Financial Group reissued a "hold" rating on shares of International Business Machines in a report on Wednesday, April 23rd. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $248.50.

International Business Machines Stock Down 0.2%

IBM opened at $258.19 on Thursday. International Business Machines has a 12 month low of $163.53 and a 12 month high of $266.45. The business has a 50-day moving average of $243.19 and a two-hundred day moving average of $235.51. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.04 and a quick ratio of 1.00. The stock has a market capitalization of $239.96 billion, a price-to-earnings ratio of 40.28, a price-to-earnings-growth ratio of 5.81 and a beta of 0.64.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of IBM. Blue Edge Capital LLC lifted its stake in shares of International Business Machines by 0.6% in the 1st quarter. Blue Edge Capital LLC now owns 6,776 shares of the technology company's stock worth $1,685,000 after acquiring an additional 39 shares during the period. JBR Co Financial Management Inc boosted its position in shares of International Business Machines by 0.6% in the 4th quarter. JBR Co Financial Management Inc now owns 6,390 shares of the technology company's stock valued at $1,405,000 after purchasing an additional 40 shares during the period. Wealth Dimensions Group Ltd. increased its stake in International Business Machines by 1.0% in the 4th quarter. Wealth Dimensions Group Ltd. now owns 3,972 shares of the technology company's stock worth $873,000 after purchasing an additional 40 shares in the last quarter. Tacita Capital Inc raised its holdings in shares of International Business Machines by 20.8% during the first quarter. Tacita Capital Inc now owns 232 shares of the technology company's stock valued at $58,000 after acquiring an additional 40 shares during the period. Finally, Pallas Capital Advisors LLC raised its stake in International Business Machines by 0.9% during the 1st quarter. Pallas Capital Advisors LLC now owns 4,805 shares of the technology company's stock valued at $1,195,000 after purchasing an additional 42 shares during the period. Institutional investors own 58.96% of the company's stock.

Insider Activity

In related news, SVP Robert David Thomas sold 26,543 shares of the stock in a transaction dated Monday, March 3rd. The shares were sold at an average price of $253.01, for a total value of $6,715,644.43. Following the sale, the senior vice president now owns 45,007 shares of the company's stock, valued at $11,387,221.07. This trade represents a 37.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.18% of the company's stock.

International Business Machines Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 10th. Shareholders of record on Friday, May 9th will be paid a $1.68 dividend. This represents a $6.72 dividend on an annualized basis and a yield of 2.60%. This is a boost from International Business Machines's previous quarterly dividend of $1.67. International Business Machines's dividend payout ratio (DPR) is presently 115.66%.

International Business Machines Company Profile

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.

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