Zacks Research Issues Optimistic Outlook for IBM Earnings

Key Points

• Zacks Research has raised its Q2 2027 earnings estimate for IBM to $3.41 per share, an increase from the previous estimate of $3.40, while the consensus for the current full-year earnings is $10.78 per share.
• IBM reported Q2 earnings of $2.80 per share, exceeding estimates and showing a revenue growth of 7.7% year-over-year, with a net margin of 9.11%.
• The company recently increased its quarterly dividend to $1.68 per share, representing an annual yield of 2.6%, although its dividend payout ratio stands at a high 109.09%.

International Business Machines Corporation (NYSE:IBM - Free Report) - Zacks Research boosted their Q2 2027 earnings per share (EPS) estimates for International Business Machines in a report issued on Tuesday, September 16th. Zacks Research analyst Team now forecasts that the technology company will post earnings of $3.41 per share for the quarter, up from their prior estimate of $3.40. 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 posted its quarterly earnings data on Wednesday, July 23rd. The technology company reported $2.80 EPS for the quarter, topping analysts' consensus estimates of $2.65 by $0.15. The business had revenue of $16.98 billion for the quarter, compared to analyst estimates 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 revenue for the quarter was up 7.7% on a year-over-year basis. During the same period in the previous year, the company posted $2.43 earnings per share. International Business Machines has set its FY 2025 guidance at EPS.

Other equities analysts have also issued reports about the company. Melius Research upgraded International Business Machines to a "strong-buy" rating in a research note on Monday, July 7th. Bank of America lowered their price target on International Business Machines from $320.00 to $310.00 and set a "buy" rating on the stock in a research note on Thursday, July 24th. UBS Group boosted their price target on International Business Machines from $195.00 to $200.00 and gave the company a "sell" rating in a research note on Thursday, July 24th. Sanford C. Bernstein began coverage on International Business Machines in a research note on Monday. They set a "market perform" rating and a $280.00 price target on the stock. Finally, Stifel Nicolaus boosted their price target on International Business Machines from $290.00 to $310.00 and gave the company a "buy" rating in a research note on Wednesday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $275.00.

International Business Machines Stock Performance

Shares of International Business Machines stock traded up $6.01 during trading on Thursday, reaching $265.09. The company's stock had a trading volume of 4,983,372 shares, compared to its average volume of 3,692,397. The company has a debt-to-equity ratio of 2.00, a quick ratio of 0.87 and a current ratio of 0.91. The business's fifty day moving average price is $255.14 and its 200-day moving average price is $257.11. The firm has a market cap of $246.38 billion, a price-to-earnings ratio of 43.03, a price-to-earnings-growth ratio of 3.99 and a beta of 0.71. International Business Machines has a one year low of $203.51 and a one year high of $296.16.

Institutional Investors Weigh In On International Business Machines

Institutional investors have recently added to or reduced their stakes in the stock. Lifestyle Asset Management Inc. lifted its stake in International Business Machines by 1.7% in the 2nd quarter. Lifestyle Asset Management Inc. now owns 2,144 shares of the technology company's stock valued at $632,000 after purchasing an additional 36 shares during the last quarter. Whelan Financial lifted its stake in International Business Machines by 2.4% in the 2nd quarter. Whelan Financial now owns 1,525 shares of the technology company's stock valued at $450,000 after purchasing an additional 36 shares during the last quarter. Ignite Planners LLC lifted its stake in International Business Machines by 0.9% in the 2nd quarter. Ignite Planners LLC now owns 3,964 shares of the technology company's stock valued at $1,133,000 after purchasing an additional 36 shares during the last quarter. Blue Edge Capital LLC lifted its stake in 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 valued at $1,685,000 after purchasing an additional 39 shares during the last quarter. Finally, Johnson Bixby & Associates LLC lifted its stake in International Business Machines by 3.3% in the 2nd quarter. Johnson Bixby & Associates LLC now owns 1,208 shares of the technology company's stock valued at $356,000 after purchasing an additional 39 shares during the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Friday, August 8th were issued a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Friday, August 8th. International Business Machines's payout ratio is presently 109.09%.

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.