International Business Machines (NYSE:IBM) Shares Up 3.5% – Here’s What Happened

Shares of International Business Machines Corporation (NYSE:IBM) traded up 3.5% during trading on Wednesday . The company traded as high as $241.50 and last traded at $240.1170. Approximately 6,318,708 shares changed hands during trading, a decline of 18% from the average session volume of 7,744,407 shares. The stock had previously closed at $232.09.

International Business Machines News Summary

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

• Positive Sentiment: Swiss quantum hub expands IBM’s commercial footprint. IBM and Lockheed Martin are establishing a quantum innovation hub at ETH Zurich through Switzerland’s defense-offset program. The facility is expected to host Switzerland’s first IBM Quantum System Two, powered by the Nighthawk r2 processor and connected with the Alps supercomputer. The project should give IBM access to researchers, businesses and government-related applications while providing a potentially non-dilutive route to fund quantum adoption through 2029. IBM and Lockheed Martin Swiss quantum innovation hub
• Positive Sentiment: Defense and research applications could support future demand. The collaboration will explore quantum sensing, navigation and advanced materials, potentially linking IBM’s quantum hardware and Qiskit software with Lockheed Martin’s aerospace and defense engineering workflows. This could increase switching costs and create longer-term enterprise and government opportunities. IBM and Lockheed Martin quantum computing bet
• Positive Sentiment: NASA partnership highlights IBM’s AI capabilities. IBM and NASA released an open-source Lunar Foundation Model trained on decades of lunar data. The model reportedly improves identification of features such as ice deposits, craters and volcanic formations by up to 23%, showcasing potential for scientific, government and future AI workloads. IBM and NASA lunar AI model
• Neutral Sentiment: Analysts continue to frame IBM as a diversified AI and quantum beneficiary. Commentary points to IBM’s hybrid-cloud, enterprise-software and government businesses as providing financial support while quantum computing develops, but the initiatives are primarily long-term and are not yet expected to materially change near-term earnings.
• Negative Sentiment: Investigation and earnings concerns remain risks. A shareholder-rights law firm said it is investigating potential securities-law violations tied to management’s preview of weak second-quarter 2026 results. Earlier earnings coverage also highlighted revenue below expectations, adding pressure to IBM’s near-term growth narrative. IBM shareholder investigation

Analyst Ratings Changes

Several research analysts have recently issued reports on IBM shares. Roth Capital reaffirmed a “buy” rating on shares of International Business Machines in a research report on Wednesday, June 3rd. Jefferies Financial Group lowered their price target on International Business Machines from $320.00 to $260.00 and set a “buy” rating for the company in a report on Tuesday, July 21st. Needham & Company LLC assumed coverage on shares of International Business Machines in a research note on Wednesday, June 3rd. They issued a “buy” rating on the stock. Stifel Nicolaus cut their price objective on shares of International Business Machines from $290.00 to $235.00 and set a “buy” rating on the stock in a report on Monday, July 20th. Finally, Sanford C. Bernstein restated a “market perform” rating on shares of International Business Machines in a report on Thursday, July 16th. Sixteen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, International Business Machines has an average rating of “Moderate Buy” and an average target price of $265.90.

International Business Machines Trading Up 3.2%

The business’s 50-day moving average price is $237.79 and its 200-day moving average price is $246.38. The firm has a market capitalization of $227.52 billion, a PE ratio of 21.41, a price-to-earnings-growth ratio of 2.29 and a beta of 0.71. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74.

International Business Machines (NYSE:IBM) last released its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting the consensus estimate of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter in the prior year, the firm earned $2.80 EPS. International Business Machines’s revenue for the quarter was up 1.1% on a year-over-year basis. As a group, analysts expect that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were paid a dividend of $1.69 per share. The ex-dividend date was Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.8%. International Business Machines’s dividend payout ratio is 59.98%.

Insider Transactions at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the business’s stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total value of $5,758,000.00. Following the transaction, the senior vice president owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.27% of the stock is owned by company insiders.

Institutional Trading of International Business Machines

Hedge funds have recently added to or reduced their stakes in the stock. California State Teachers Retirement System grew its position in International Business Machines by 28,068.3% in the 2nd quarter. California State Teachers Retirement System now owns 400,522,341 shares of the technology company’s stock valued at $112,630,888,000 after buying an additional 399,100,449 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of International Business Machines in the 2nd quarter worth $21,586,659,000. State Street Corp boosted its holdings in shares of International Business Machines by 1.0% in the fourth quarter. State Street Corp now owns 54,996,293 shares of the technology company’s stock valued at $16,290,452,000 after acquiring an additional 518,321 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of International Business Machines by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 22,605,083 shares of the technology company’s stock valued at $6,679,105,000 after acquiring an additional 336,069 shares in the last quarter. Finally, Capital World Investors increased its stake in shares of International Business Machines by 29.2% during the fourth quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock worth $6,523,720,000 after acquiring an additional 4,976,756 shares during the period. 58.96% of the stock is owned by institutional investors and hedge funds.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.