International Business Machines (NYSE:IBM) Trading Up 4.9% Following Strong Earnings

International Business Machines Corporation (NYSE:IBM)’s share price traded up 4.9% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $319.90 and last traded at $308.6730. 10,094,745 shares changed hands during mid-day trading, an increase of 120% from the average session volume of 4,586,893 shares. The stock had previously closed at $294.16.

The technology company reported $4.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.33 by $0.19. The business had revenue of $19.69 billion during the quarter, compared to the consensus estimate 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 quarterly revenue was up 12.2% compared to the same quarter last year. During the same quarter last year, the company posted $3.92 earnings per share.

International Business Machines Dividend Announcement

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

International Business Machines News Summary

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 Ratings Changes

Several research firms have recently weighed in on IBM. Wedbush increased their price target on International Business Machines from $325.00 to $340.00 and gave the stock an “outperform” rating in a research note on Thursday. UBS Group set a $317.00 target price on shares of International Business Machines in a research report on Thursday. Jefferies Financial Group boosted their price target on shares of International Business Machines from $360.00 to $370.00 and gave the company a “buy” rating in a research report on Thursday. Morgan Stanley set a $304.00 price target on shares of International Business Machines in a research note on Thursday. Finally, Sanford C. Bernstein reiterated a “market perform” rating on shares of International Business Machines in a research note on Wednesday, December 10th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, International Business Machines currently has an average rating of “Moderate Buy” and an average price target of $330.07.

Insider Transactions at International Business Machines

In other news, Director David N. Farr bought 1,000 shares of the stock in a transaction on Friday, January 30th. The shares were acquired at an average cost of $304.00 per share, for a total transaction of $304,000.00. Following the purchase, the director directly owned 9,258 shares of the company’s stock, valued at $2,814,432. This trade represents a 12.11% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.18% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Family CFO Inc bought a new position in International Business Machines in the 2nd quarter worth about $25,000. Winnow Wealth LLC purchased a new position in shares of International Business Machines during the second quarter worth about $27,000. Mountain Hill Investment Partners Corp. bought a new position in shares of International Business Machines in the third quarter worth approximately $28,000. Joseph Group Capital Management purchased a new stake in International Business Machines in the fourth quarter valued at approximately $28,000. Finally, SWAN Capital LLC bought a new stake in International Business Machines during the third quarter valued at approximately $28,000. Institutional investors own 58.96% of the company’s stock.

International Business Machines Trading Down 0.9%

The stock’s 50 day simple moving average is $302.85 and its 200 day simple moving average is $283.14. The firm has a market cap of $286.48 billion, a PE ratio of 27.49, a PEG ratio of 2.99 and a beta of 0.70. The company has a debt-to-equity ratio of 1.67, a quick ratio of 0.89 and a current ratio of 0.96.

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.