Zacks Research Issues Optimistic Outlook for IBM Earnings

International Business Machines Corporation (NYSE:IBM) – Equities researchers at Zacks Research upped their Q3 2026 EPS estimates for International Business Machines in a research note issued on Monday, December 29th. Zacks Research analyst Team now forecasts that the technology company will earn $2.85 per share for the quarter, up from their previous estimate of $2.84. The consensus estimate for International Business Machines’ current full-year earnings is $10.78 per share. Zacks Research also issued estimates for International Business Machines’ Q4 2026 earnings at $4.33 EPS, FY2026 earnings at $11.85 EPS, Q3 2027 earnings at $3.01 EPS and FY2027 earnings at $12.79 EPS.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, October 22nd. The technology company reported $2.65 earnings per share for the quarter, topping analysts’ consensus estimates of $2.45 by $0.20. International Business Machines had a net margin of 12.09% and a return on equity of 37.76%. The company had revenue of $16.33 billion during the quarter, compared to analyst estimates of $16.10 billion. During the same period in the previous year, the business earned $2.30 EPS. The firm’s revenue for the quarter was up 9.1% on a year-over-year basis.

IBM has been the topic of several other reports. UBS Group reaffirmed a “sell” rating on shares of International Business Machines in a research report on Tuesday, December 9th. Oppenheimer started coverage on shares of International Business Machines in a report on Friday, November 21st. They set an “outperform” rating and a $360.00 price target on the stock. Morgan Stanley decreased their price objective on shares of International Business Machines from $256.00 to $252.00 and set an “equal weight” rating for the company in a report on Thursday, October 23rd. BMO Capital Markets increased their price objective on shares of International Business Machines from $300.00 to $305.00 and gave the company a “market perform” rating in a research report on Thursday, October 23rd. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating on shares of International Business Machines in a research report on Wednesday, December 10th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, International Business Machines presently has an average rating of “Moderate Buy” and a consensus price target of $293.38.

International Business Machines Stock Down 2.0%

International Business Machines stock opened at $296.07 on Wednesday. International Business Machines has a 12 month low of $214.50 and a 12 month high of $324.90. The stock has a fifty day simple moving average of $304.87 and a two-hundred day simple moving average of $281.41. The company has a current ratio of 0.93, a quick ratio of 0.89 and a debt-to-equity ratio of 1.97. The firm has a market cap of $276.75 billion, a price-to-earnings ratio of 35.42, a PEG ratio of 2.95 and a beta of 0.70.

International Business Machines Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 10th. Shareholders of record on Monday, November 10th were given a $1.68 dividend. The ex-dividend date was Monday, November 10th. This represents a $6.72 annualized dividend and a yield of 2.3%. International Business Machines’s dividend payout ratio (DPR) is presently 80.38%.

Institutional Investors Weigh In On International Business Machines

A number of hedge funds have recently modified their holdings of IBM. CFS Investment Advisory Services LLC grew its holdings in International Business Machines by 0.4% during the third quarter. CFS Investment Advisory Services LLC now owns 9,359 shares of the technology company’s stock valued at $2,878,000 after purchasing an additional 34 shares during the period. KPP Advisory Services LLC lifted its position in shares of International Business Machines by 1.7% during the 3rd quarter. KPP Advisory Services LLC now owns 2,069 shares of the technology company’s stock valued at $584,000 after buying an additional 34 shares in the last quarter. Marco Investment Management LLC grew its stake in shares of International Business Machines by 0.3% during the 3rd quarter. Marco Investment Management LLC now owns 10,774 shares of the technology company’s stock valued at $3,040,000 after acquiring an additional 34 shares during the period. MA Private Wealth increased its holdings in International Business Machines by 1.5% in the 3rd quarter. MA Private Wealth now owns 2,242 shares of the technology company’s stock worth $633,000 after acquiring an additional 34 shares in the last quarter. Finally, Altman Advisors Inc. raised its stake in International Business Machines by 0.3% during the 3rd quarter. Altman Advisors Inc. now owns 9,929 shares of the technology company’s stock worth $2,802,000 after acquiring an additional 34 shares during the period. Institutional investors own 58.96% of the company’s stock.

Key International Business Machines News

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

• Positive Sentiment: Long-term bullish takes highlight IBM’s leadership in quantum computing — analysts and commentators point to IBM’s clear roadmap, R&D resources and enterprise positioning as reasons it could be one of the better quantum plays over the next decade. What Is One of the Best Quantum Computing Stocks to Own for the Next 10 Years?
• Positive Sentiment: Coverage of the quantum sector frames IBM as a lower-risk way to get quantum exposure because it pairs quantum R&D with a diversified, cash-generating legacy business — a point that supports longer-term investor confidence. (MarketBeat summary)
• Positive Sentiment: Sector pieces forecasting quantum and AI growth (including Zacks’ roundup) list IBM among the industry winners, reinforcing a durable growth narrative that can support higher valuation expectations over time. Quantum Investing in 2026: Hit the Jackpot With the Best 3 Stocks
• Neutral Sentiment: IBM published views on AI trends for 2026 (expecting smarter models vs. simply bigger ones); this supports strategy credibility but is a gradual, not immediate, catalyst. What Will AI Progress Look Like in 2026? IBM Gives Its Prediction
• Neutral Sentiment: Zacks’ analyst model changes are mixed: small upward tweaks to FY2026/FY2027 and Q4/Q3 2026 EPS, alongside a tiny cut to a later-quarter estimate — overall not a major revision but it adds nuance to near-term expectations. (Research-note summaries)
• Negative Sentiment: Wall Street reaction to IBM’s recent Confluent acquisition remains mixed; some analysts see strategic upside for enterprise generative AI, while others remain cautious — the divergence can pressure the stock as investors reassess integration risk and near-term costs. Wall Street Has a Mixed Opinion in International Business Machines (IBM), Here’s Why
• Negative Sentiment: Intraday market data shows IBM’s decline is large enough to weigh on passive funds (VOO noted IBM as a contributor to its drop), indicating broad-market selling pressure beyond company-specific fundamentals. VOO is down 0.4% today, on IBM stock price movement

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.