International Business Machines (NYSE:IBM) Releases 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 $1.91 EPS for the quarter, topping the consensus estimate of $1.81 by $0.10, Zacks reports. The firm had revenue of $15.92 billion for the quarter, compared to the consensus estimate of $15.60 billion. International Business Machines had a return on equity of 38.15% and a net margin of 15.69%.

International Business Machines Trading Down 1.5%

NYSE:IBM traded down $3.96 during mid-day trading on Wednesday, reaching $251.72. 11,526,341 shares of the company’s stock traded hands, compared to its average volume of 5,710,417. International Business Machines has a 12-month low of $220.72 and a 12-month high of $324.90. The firm has a market capitalization of $236.12 billion, a price-to-earnings ratio of 22.58, a PEG ratio of 2.65 and a beta of 0.69. The company has a debt-to-equity ratio of 1.67, a current ratio of 0.96 and a quick ratio of 0.92. The company has a 50 day moving average price of $247.46 and a 200-day moving average price of $281.42.

International Business Machines Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th were issued a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date was Tuesday, February 10th. International Business Machines’s payout ratio is currently 60.27%.

Wall Street Analysts Forecast Growth

IBM has been the topic of several analyst reports. Morgan Stanley set a $215.00 price objective on International Business Machines in a report on Tuesday, April 14th. UBS Group upgraded International Business Machines from a “sell” rating to a “neutral” rating and set a $236.00 price objective on the stock in a report on Wednesday, February 25th. Evercore lifted their price objective on International Business Machines from $330.00 to $345.00 and gave the stock an “outperform” rating in a report on Thursday, January 29th. Royal Bank Of Canada decreased their price objective on International Business Machines from $361.00 to $330.00 and set an “outperform” rating on the stock in a report on Friday, April 17th. Finally, Erste Group Bank downgraded International Business Machines from a “buy” rating to a “hold” rating in a report on Wednesday, February 18th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $298.81.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: Analysts expect an earnings beat: FactSet consensus and several analyst houses look for ~ $1.81 adj. EPS and ~$15.6B revenue for Q1, with software revenue seen growing ~10% — a near-term catalyst if IBM posts upside. IBM Earnings Are on Deck. Wall Street Expects Revenue Growth.
• Positive Sentiment: New product and partnership news supports AI/service revenue narrative — IBM rolled out AI?powered experience orchestration with Adobe, positioning consulting and software cross-sell opportunities. IBM Introduces Industry Solutions for AI?Powered Experience Orchestration with Adobe
• Positive Sentiment: Security and quantum investments: IBM announced new cybersecurity tools for AI threats and expanded quantum/AI collaborations — these can expand serviceable addressable market and justify longer-term multiple expansion if adoption accelerates. IBM introduces new cyberscurity tools to counter AI-driven attacks IBM Expands Quantum AI And Security Push As Investors Weigh Rewards
• Neutral Sentiment: Industry tailwinds: A large CIAM market forecast and analyst pieces naming IBM among AI/quantum hyperscalers highlight secular growth opportunities, but these are multi?year drivers rather than immediate stock movers. Consumer Identity and Access Management Global Market Forecast Report 2026-2036…
• Neutral Sentiment: Operational/PR items: IBM?i observability discussion and general market macro (jobless claims/ceasefire headlines) are background factors that could sway sentiment but are unlikely to change fundamentals immediately. i-Rays Stresses Observability AI as Essential for IBM i Environments Markets Eye Jobless Claims Data
• Negative Sentiment: Analyst caution: J.P. Morgan remains at a Hold and some commentary highlights ongoing debate about AI risk to legacy software margins — a reminder why the stock can trade lower even with product wins. J.P. Morgan Sticks to Its Hold Rating for International Business Machines (IBM) IBM Stock: Why Q1 Will Be A ‘Key Quarter’ Amid Debate About Software’s AI Risk

Insider Transactions at International Business Machines

In other news, Director Michael Miebach bought 434 shares of International Business Machines stock in a transaction on Wednesday, February 25th. The shares were purchased at an average price of $233.33 per share, for a total transaction of $101,265.22. Following the acquisition, the director owned 434 shares of the company’s stock, valued at approximately $101,265.22. The trade was a ? increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director David N. Farr bought 1,000 shares of International Business Machines stock in a transaction on Friday, January 30th. The shares were purchased at an average price of $304.00 per share, for a total transaction of $304,000.00. Following the acquisition, the director directly owned 9,258 shares in the company, valued at approximately $2,814,432. This trade represents a 12.11% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have purchased 1,484 shares of company stock worth $417,157. 0.27% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in IBM. SWAN Capital LLC purchased a new position in shares of International Business Machines during the 3rd quarter worth approximately $28,000. Greenline Wealth Management LLC purchased a new position in shares of International Business Machines during the 4th quarter worth approximately $33,000. Quarry LP purchased a new position in shares of International Business Machines during the 4th quarter worth approximately $41,000. Acumen Wealth Advisors LLC purchased a new position in shares of International Business Machines during the 4th quarter worth approximately $44,000. Finally, Jessup Wealth Management Inc purchased a new position in shares of International Business Machines during the 4th quarter worth approximately $52,000. Hedge funds and other institutional investors own 58.96% of the company’s stock.

International Business Machines Company Profile

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.