FY2026 Earnings Forecast for IBM Issued By Erste Group Bank

International Business Machines Corporation (NYSE:IBM) – Investment analysts at Erste Group Bank lowered their FY2026 earnings estimates for International Business Machines in a research note issued on Wednesday, July 15th. Erste Group Bank analyst H. Engel now anticipates that the technology company will post earnings of $12.39 per share for the year, down from their previous estimate of $12.42. The consensus estimate for International Business Machines’ current full-year earnings is $12.28 per share.

Several other research firms have also recently commented on IBM. Piper Sandler upgraded International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. JPMorgan Chase & Co. lowered their price target on International Business Machines from $291.00 to $250.00 and set an “overweight” rating on the stock in a report on Friday. Weiss Ratings downgraded International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, June 24th. HSBC set a $175.00 price objective on International Business Machines and gave the stock a “reduce” rating in a report on Thursday. Finally, KeyCorp downgraded shares of International Business Machines to a “sector weight” rating in a research note on Tuesday, June 23rd. Fifteen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, International Business Machines currently has an average rating of “Moderate Buy” and an average price target of $289.83.

International Business Machines Trading Up 0.2%

International Business Machines stock opened at $213.18 on Monday. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. International Business Machines has a fifty-two week low of $204.44 and a fifty-two week high of $332.46. The stock has a market cap of $200.36 billion, a P/E ratio of 18.85, a PEG ratio of 2.28 and a beta of 0.68. The firm’s fifty day moving average price is $263.63 and its 200-day moving average price is $262.66.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, topping analysts’ consensus estimates of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The business had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same quarter in the prior year, the firm posted $1.60 EPS. International Business Machines’s revenue was up 9.5% on a year-over-year basis.

International Business Machines Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th were paid a $1.69 dividend. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.2%. International Business Machines’s dividend payout ratio is currently 59.77%.

Hedge Funds Weigh In On International Business Machines

Institutional investors and hedge funds have recently made changes to their positions in the business. IFP Advisors Inc raised its position in International Business Machines by 30.6% in the 2nd quarter. IFP Advisors Inc now owns 43,273 shares of the technology company’s stock worth $12,169,000 after purchasing an additional 10,130 shares during the period. Interchange Capital Partners LLC lifted its stake in International Business Machines by 19.5% in the second quarter. Interchange Capital Partners LLC now owns 4,730 shares of the technology company’s stock worth $1,330,000 after purchasing an additional 772 shares during the last quarter. Guyasuta Investment Advisors Inc. boosted its position in International Business Machines by 2.3% during the second quarter. Guyasuta Investment Advisors Inc. now owns 47,200 shares of the technology company’s stock valued at $13,273,000 after buying an additional 1,052 shares during the period. Owl Creek Wealth Partners LLC boosted its position in International Business Machines by 26.3% during the second quarter. Owl Creek Wealth Partners LLC now owns 673 shares of the technology company’s stock valued at $189,000 after buying an additional 140 shares during the period. Finally, Merit Financial Group LLC grew its stake in shares of International Business Machines by 6.6% during the second quarter. Merit Financial Group LLC now owns 55,170 shares of the technology company’s stock valued at $15,514,000 after buying an additional 3,416 shares during the last quarter. Institutional investors own 58.96% of the company’s stock.

International Business Machines News Summary

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

• Negative Sentiment: IBM’s surprise Q2 pre-announcement and profit warning triggered multiple analyst target cuts, reinforcing fears that near-term earnings and guidance may be weaker than expected. IBM Stock: Analysts Cut Targets After Company’s Surprise Profit Warning
• Negative Sentiment: Several reports say IBM’s recent plunge erased tens of billions in market value, with investors worried the company misjudged the pace of AI budget shifts and may face additional downside if full-year guidance is reduced. Why Did IBM Stock Plunge 25% in One Day? Preliminary Q2 Results Were Weak, But Not Terrible
• Negative Sentiment: Law firms have launched investigations and shareholder-rights actions over alleged misrepresentations tied to IBM Z product slowdown disclosures, adding legal overhang to the stock. IBM Legal News: IBM Investigated for Misrepresentations about its IBM Z Product Slowdown – Investors Notified to Contact BFA Law
• Neutral Sentiment: Some analysts remain constructive, arguing IBM’s current valuation now looks much cheaper after the selloff and that the stock could rebound if management restores confidence on software, consulting, and AI execution. Could IBM Be Worth More Broken Apart? Stifel Runs the Numbers
• Neutral Sentiment: Preview pieces ahead of the full Q2 report suggest IBM’s consulting and software revenue trends may still benefit from AI, cloud, and cybersecurity demand, but investors are waiting for hard evidence after the warning. Can Y/Y Higher Consulting Revenues Benefit IBM’s Q2 Earnings?

About International Business Machines

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.