What is Erste Group Bank’s Forecast for IBM FY2027 Earnings?

International Business Machines Corporation (NYSE:IBM) – Analysts at Erste Group Bank lowered their FY2027 EPS estimates for shares of International Business Machines in a research report issued to clients and investors on Wednesday, July 15th. Erste Group Bank analyst H. Engel now forecasts that the technology company will post earnings of $13.38 per share for the year, down from their prior estimate of $13.41. The consensus estimate for International Business Machines’ current full-year earnings is $12.28 per share.

Several other research analysts also recently weighed in on the company. Jefferies Financial Group started coverage on International Business Machines in a research note on Tuesday, June 23rd. They set a “buy” rating for the company. Wall Street Zen downgraded shares of International Business Machines from a “hold” rating to a “sell” rating in a report on Saturday. Argus cut their target price on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a research report on Thursday. Morgan Stanley boosted their price target on shares of International Business Machines from $267.00 to $293.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 14th. Finally, Citigroup dropped their price target on shares of International Business Machines from $375.00 to $255.00 and set a “buy” rating on the stock in a research note on Friday. Fifteen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, International Business Machines currently has an average rating of “Moderate Buy” and an average price target of $292.89.

International Business Machines Stock Performance

Shares of IBM opened at $212.54 on Friday. International Business Machines has a 1 year low of $204.44 and a 1 year high of $332.46. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. The stock’s fifty day moving average price is $263.84 and its two-hundred day moving average price is $263.58. The firm has a market cap of $199.76 billion, a PE ratio of 18.79, a PEG ratio of 2.07 and a beta of 0.68.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share for the quarter, beating the consensus estimate of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business had revenue of $15.92 billion during the quarter, compared to analyst estimates of $15.60 billion. During the same period in the prior year, the company earned $1.60 earnings per share. International Business Machines’s revenue was up 9.5% compared to the same quarter last year.

International Business Machines Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were paid a dividend of $1.69 per share. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. This represents a $6.76 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend was Friday, May 8th. International Business Machines’s dividend payout ratio is 59.77%.

Hedge Funds Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently added to or reduced their stakes in IBM. VIRGINIA RETIREMENT SYSTEMS ET Al increased its position in International Business Machines by 424.6% during the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock valued at $77,234,000 after purchasing an additional 211,040 shares during the period. GLOBALT Investments LLC GA boosted its position in International Business Machines by 19.1% during the 4th quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock valued at $5,417,000 after acquiring an additional 2,930 shares in the last quarter. Newbridge Financial Services Group Inc. grew its holdings in shares of International Business Machines by 30.0% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company’s stock worth $3,887,000 after acquiring an additional 3,029 shares during the period. Rice Partnership LLC bought a new position in shares of International Business Machines in the 4th quarter worth approximately $3,317,000. Finally, Sage Investment Advisers LLC purchased a new position in shares of International Business Machines in the 4th quarter valued at approximately $4,101,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines News Summary

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

• Positive Sentiment: IBM launched new Power server products aimed at automation, app modernization, and local AI inferencing, which could support its enterprise AI push over time.
• Positive Sentiment: JPMorgan kept an overweight rating on IBM even after cutting its price target to $250, indicating Wall Street still sees upside from current levels.
• Positive Sentiment: Some analysts say the stock’s sharp decline may have pushed it into oversold territory, which could attract bargain hunters if sentiment stabilizes.
• Neutral Sentiment: IBM heads into its July 22 earnings report with investors focused on whether the company can validate its AI and cloud momentum after the warning.
• Neutral Sentiment: Analysts at Zacks and others are debating whether the selloff is an opportunity or a sign to wait, reflecting uncertainty rather than a clear fundamental shift.
• Negative Sentiment: IBM’s preliminary Q2 miss and weak near-term outlook are the main reasons the stock is falling, as they suggest slower growth and margin pressure.
• Negative Sentiment: Multiple law firms have announced securities-fraud investigations after the plunge, which can keep negative headlines around the stock.
• Negative Sentiment: Analyst sentiment is turning more cautious, with some estimate reductions and technical warnings reinforcing bearish momentum.

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.