International Business Machines (NYSE:IBM) Announces Quarterly Earnings Results, Beats Estimates By $0.10 EPS

International Business Machines (NYSE:IBM) released its quarterly earnings data on Wednesday. The technology company reported $2.95 earnings per share for the quarter, beating the consensus estimate of $2.85 by $0.10, FiscalAI reports. The firm had revenue of $17.10 billion during the quarter, compared to the consensus estimate of $16.82 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.

International Business Machines Trading Up 3.6%

Shares of International Business Machines stock traded up $8.75 during trading hours on Wednesday, reaching $250.67. 8,822,157 shares of the company’s stock were exchanged, compared to its average volume of 7,454,617. International Business Machines has a 52-week low of $199.19 and a 52-week high of $332.46. The firm has a market capitalization of $236.16 billion, a price-to-earnings ratio of 22.24, a price-to-earnings-growth ratio of 2.27 and a beta of 0.73. The company has a fifty day moving average of $232.07 and a 200-day moving average of $243.58. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: Wall Street expects IBM to report third-quarter earnings of approximately $2.86–$2.87 per share and revenue near $16.82–$16.84 billion. Analysts are looking for roughly 8% year-over-year EPS growth, creating the possibility of a positive reaction if IBM beats estimates or offers stronger guidance. IBM Q3 Earnings Preview
• Positive Sentiment: Investors are watching for evidence that previously delayed deals have closed and that software growth accelerated in the second half of the year. A stronger bookings outlook or improving cloud and AI demand could help IBM rebuild confidence after its summer selloff. IBM and SAP Earnings Preview
• Positive Sentiment: IBM continues to expand its enterprise AI positioning. IBM Ventures invested in Leena AI, while IBM and partners introduced the open-source llm-d 1.0 platform for scalable, cost-efficient AI inference. These initiatives support the company’s strategy of monetizing hybrid cloud, automation and production AI workloads. IBM Ventures Invests in Leena AI
• Neutral Sentiment: Options traders are pricing in a potentially large post-earnings move of about 7.16%, indicating elevated expectations and near-term volatility rather than a clear directional outlook. IBM Options Market Preview
• Negative Sentiment: IBM remains under pressure after falling about 17%–19% year to date, and recent revenue concerns have damaged its market narrative. A revenue miss, weak software growth or cautious guidance could quickly reverse the pre-earnings optimism. IBM Has a Chance to Rewrite Its Narrative

Wall Street Analyst Weigh In

A number of analysts have commented on the company. Wall Street Zen downgraded International Business Machines from a “hold” rating to a “sell” rating in a research report on Saturday, September 12th. Piper Sandler upgraded International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Daiwa Securities Group cut their price target on International Business Machines from $247.00 to $217.00 and set a “neutral” rating for the company in a research note on Wednesday, July 29th. The Goldman Sachs Group set a $270.00 price objective on shares of International Business Machines and gave the stock a “buy” rating in a research report on Thursday, July 23rd. Finally, Sanford C. Bernstein decreased their price objective on shares of International Business Machines from $280.00 to $230.00 and set a “market perform” rating on the stock in a research report on Thursday, July 23rd. Twenty investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $255.76.

Insider Activity

In other news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction on 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 completion of the sale, the senior vice president owned 47,800 shares of the company’s stock, valued at $11,009,296. The trade was a 34.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.27% of the stock is owned by company insiders.

International Business Machines Company Profile

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.