International Business Machines (NYSE:IBM) Shares Gap Up on Strong Earnings

Shares of International Business Machines Corporation (NYSE:IBM) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $294.16, but opened at $317.86. International Business Machines shares last traded at $311.7820, with a volume of 4,097,949 shares changing hands.

The technology company reported $4.52 EPS for the quarter, beating analysts’ consensus estimates of $4.33 by $0.19. The company had revenue of $19.69 billion during the quarter, compared to analyst estimates of $19.23 billion. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The firm’s revenue was up 12.2% compared to the same quarter last year. During the same period in the prior year, the business posted $3.92 EPS.

International Business Machines Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 10th will be issued a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Tuesday, February 10th. International Business Machines’s dividend payout ratio is currently 60.27%.

International Business Machines News Roundup

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

• Positive Sentiment: Q4 beat and upgraded 2026 revenue outlook — IBM reported better‑than‑expected Q4 EPS and revenue, highlighted strong software and AI (watsonx/Red Hat) momentum, and gave FY‑2026 revenue guidance above Street consensus. These fundamentals are the primary driver of recent upside interest. IBM Q4 Earnings Surpass Estimates
• Positive Sentiment: AI & software growth narrative strengthened — Management said AI‑related revenue and software growth powered the quarter (software +14%, infrastructure +21%), and IBM is positioning with its Confluent acquisition to expand data streaming for AI workloads — a strategic tailwind for valuation. Analysis Of IBM’s Confluent Acquisition
• Positive Sentiment: Analyst upgrades and higher targets — Multiple firms lifted price targets and reiterated buy/outperform views after the quarter (Evercore to $345 outperf; JPMorgan raised its target). Upgrades add buying pressure and validate management’s AI story. Evercore Raises Target JPMorgan Raises IBM Target
• Positive Sentiment: Shareholder returns intact — IBM declared its quarterly dividend ($1.68 per share), supporting income investors and signaling confidence in cash flow. (Ex‑dividend date noted in company disclosures.)
• Positive Sentiment: Board addition brings operating experience — IBM elected Ramon L. Laguarta (former PepsiCo CEO) to the board, adding consumer‑sector and global ops expertise that investors often view as governance strength. IBM Elects Ramon L. Laguarta
• Neutral Sentiment: Large bond sale draws attention to funding and leverage — IBM has launched multi‑part bond offerings (euro and dollar) to fund deals and operations; investors are parsing issuance size, yields and the impact on balance‑sheet leverage. This is a funding update rather than an earnings surprise, so impact is mixed. IBM Bond Sale Puts Fresh Funding And Valuation In Investor Focus
• Negative Sentiment: Bearish/critical takes remain — Some analysts and commentaries highlight risks (execution, macro sensitivity, or areas of weakness) and published critical pieces framing cautionary scenarios that can pressure sentiment after initial euphoria. IBM: Limping Into 2026

Analyst Upgrades and Downgrades

Several research firms have weighed in on IBM. Argus set a $360.00 price objective on International Business Machines in a report on Friday. Jefferies Financial Group raised their price target on International Business Machines from $360.00 to $370.00 and gave the stock a “buy” rating in a research note on Thursday. Bank of America boosted their price objective on shares of International Business Machines from $315.00 to $335.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. Oppenheimer set a $380.00 target price on shares of International Business Machines and gave the stock an “outperform” rating in a research report on Thursday. Finally, Sanford C. Bernstein reiterated 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, twelve have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $330.07.

Insider Transactions at International Business Machines

In other International Business Machines news, Director David N. Farr acquired 1,000 shares of the company’s stock in a transaction that occurred on Friday, January 30th. The shares were acquired at an average price of $304.00 per share, with a total value of $304,000.00. Following the completion of the purchase, the director directly owned 9,258 shares of the company’s stock, valued at approximately $2,814,432. The trade was a 12.11% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.18% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On International Business Machines

Several large investors have recently made changes to their positions in IBM. Brighton Jones LLC raised its position in shares of International Business Machines by 12.4% in the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock worth $4,619,000 after purchasing an additional 2,323 shares during the last quarter. Trinity Legacy Partners LLC bought a new stake in International Business Machines during the 2nd quarter valued at about $203,000. Sivia Capital Partners LLC raised its holdings in International Business Machines by 10.6% in the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock worth $571,000 after buying an additional 186 shares during the last quarter. Pure Financial Advisors LLC lifted its stake in shares of International Business Machines by 23.3% in the second quarter. Pure Financial Advisors LLC now owns 5,865 shares of the technology company’s stock worth $1,729,000 after buying an additional 1,108 shares in the last quarter. Finally, Jmac Enterprises LLC purchased a new stake in shares of International Business Machines during the second quarter valued at approximately $590,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Price Performance

The firm has a 50-day moving average of $302.85 and a 200-day moving average of $283.14. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.89 and a current ratio of 0.96. The firm has a market capitalization of $286.48 billion, a P/E ratio of 27.49, a PEG ratio of 2.99 and a beta of 0.70.

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.