What is Erste Group Bank’s Estimate for IBM FY2026 Earnings?

International Business Machines Corporation (NYSE:IBM) – Erste Group Bank decreased their FY2026 earnings per share (EPS) estimates for International Business Machines in a research note issued to investors on Wednesday, July 15th. Erste Group Bank analyst H. Engel now anticipates that the technology company will post earnings per share of $12.39 for the year, down from their prior forecast of $12.42. The consensus estimate for International Business Machines’ current full-year earnings is $12.28 per share.

International Business Machines (NYSE:IBM) last issued its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) 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 firm had revenue of $15.92 billion for the quarter, compared to analyst estimates of $15.60 billion. During the same period in the previous year, the company posted $1.60 earnings per share. The business’s revenue was up 9.5% on a year-over-year basis.

A number of other brokerages have also recently issued reports on IBM. Royal Bank Of Canada restated an “outperform” rating on shares of International Business Machines in a research note on Tuesday, June 23rd. Piper Sandler upgraded shares of International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Jefferies Financial Group initiated coverage on shares of International Business Machines in a research note on Tuesday, June 23rd. They issued a “buy” rating for the company. HSBC set a $175.00 price target on shares of International Business Machines and gave the company a “reduce” rating in a research report on Thursday. Finally, BMO Capital Markets cut their price objective on shares of International Business Machines from $290.00 to $270.00 and set a “market perform” rating for the company in a report on Thursday, April 23rd. Fifteen research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $292.89.

International Business Machines Stock Down 0.1%

IBM stock opened at $212.54 on Monday. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The company has a market capitalization of $199.76 billion, a price-to-earnings ratio of 18.79, a PEG ratio of 2.28 and a beta of 0.68. International Business Machines has a fifty-two week low of $204.44 and a fifty-two week high of $332.46. The stock has a fifty day moving average of $263.84 and a 200-day moving average of $263.28.

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 given a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a dividend yield of 3.2%. This is a boost from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date was Friday, May 8th. International Business Machines’s dividend payout ratio (DPR) 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. Intergy Private Wealth LLC increased its stake in International Business Machines by 1.4% in the 2nd quarter. Intergy Private Wealth LLC now owns 3,514 shares of the technology company’s stock worth $988,000 after acquiring an additional 50 shares during the last quarter. Cary Street Partners Financial LLC boosted its position in shares of International Business Machines by 4.9% during the 2nd quarter. Cary Street Partners Financial LLC now owns 29,451 shares of the technology company’s stock valued at $8,282,000 after acquiring an additional 1,386 shares during the last quarter. SeaBridge Investment Advisors LLC grew its holdings in shares of International Business Machines by 13.7% during the second quarter. SeaBridge Investment Advisors LLC now owns 5,642 shares of the technology company’s stock worth $1,587,000 after purchasing an additional 679 shares in the last quarter. Rosenberg Matthew Hamilton grew its holdings in shares of International Business Machines by 5.6% during the second quarter. Rosenberg Matthew Hamilton now owns 1,983 shares of the technology company’s stock worth $558,000 after purchasing an additional 105 shares in the last quarter. Finally, Central Bank & Trust Co. increased its position in shares of International Business Machines by 2.5% in the second quarter. Central Bank & Trust Co. now owns 2,724 shares of the technology company’s stock worth $766,000 after purchasing an additional 66 shares during the last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting International Business Machines

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.

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.