International Business Machines (NYSE:IBM) Shares Down 2.1% After Earnings Miss

Shares of International Business Machines Corporation (NYSE:IBM) were down 2.1% during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $204.73 and last traded at $206.0290. Approximately 13,496,854 shares were traded during trading, an increase of 66% from the average daily volume of 8,118,879 shares. The stock had previously closed at $210.50.

The technology company reported $2.93 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.93. The firm had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 36.58%. The business’s revenue was up 1.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.80 earnings per share.

International Business Machines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines’s payout ratio is currently 59.77%.

International Business Machines News Roundup

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

• Negative Sentiment: IBM missed revenue expectations and lowered its 2026 revenue growth forecast after customers delayed software deals and shifted spending toward AI infrastructure, which hurt mainframe-related sales and raised concerns about near-term growth. IBM buys HRL Laboratories in shift to two-track quantum computing strategy
• Negative Sentiment: Several articles highlight a sharp selloff and investor concern that IBM’s mainframe weakness and softer execution could keep the stock in a “holding pattern” until the company proves its new guidance is achievable. IBM Lowers Its Growth Outlook as Sales of Data Center Mainframes Sink 42%
• Negative Sentiment: Law firms announced securities-fraud investigations tied to the post-earnings stock drop, adding an overhang that can further weigh on sentiment. IBM Investigated by the Portnoy Law Firm
• Negative Sentiment: Media coverage also framed IBM as one of the weakest names among large-cap tech stocks after the earnings disappointment, reinforcing the bearish narrative around the shares. IBM just had its worst day on the market in decades — and the CEO blames a spending shift he didn’t see coming
• Neutral Sentiment: IBM did meet adjusted EPS expectations and said cash flow, dividend policy, and longer-term profitability remain intact, which helped limit some of the selloff even as revenue disappointed.
• Neutral Sentiment: Management is trying to reassure investors that AI is not a major threat to the software unit and that delayed deals are being pushed rather than lost, suggesting a possible second-half rebound if execution improves. IBM’s Krishna tries to reassure investors that AI won’t disrupt company’s software unit
• Positive Sentiment: IBM announced it is acquiring HRL Laboratories to expand its quantum computing capabilities, a strategic move that strengthens the company’s long-term growth story in advanced computing. IBM buys HRL Laboratories in shift to two-track quantum computing strategy
• Positive Sentiment: The acquisition and IBM’s continued emphasis on quantum and AI helped offset some of the earnings disappointment, since investors see these as potential long-term growth drivers.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on IBM shares. Jefferies Financial Group lowered their target price on International Business Machines from $320.00 to $260.00 and set a “buy” rating for the company in a report on Tuesday. Barclays reduced their price objective on International Business Machines from $288.00 to $262.00 and set an “overweight” rating for the company in a research report on Thursday. Bank of America increased their price objective on International Business Machines from $315.00 to $330.00 and gave the stock a “buy” rating in a report on Monday, July 6th. HSBC set a $175.00 target price on International Business Machines and gave the company a “reduce” rating in a research report on Thursday, July 16th. Finally, The Goldman Sachs Group set a $270.00 target price on International Business Machines in a research note on Thursday. Fifteen investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, International Business Machines presently has an average rating of “Moderate Buy” and a consensus price target of $269.80.

Hedge Funds Weigh In On International Business Machines

Hedge funds have recently modified their holdings of the stock. Brighton Jones LLC raised its stake in shares of International Business Machines by 12.4% during 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 in the last quarter. Sivia Capital Partners LLC increased its holdings in International Business Machines by 10.6% during 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. Jump Financial LLC bought a new stake in International Business Machines during the second quarter worth $211,000. Ieq Capital LLC raised its position in International Business Machines by 2.2% during the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock worth $11,383,000 after acquiring an additional 843 shares in the last quarter. Finally, Vivaldi Capital Management LP lifted its stake in International Business Machines by 11.6% in the second quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock valued at $300,000 after acquiring an additional 106 shares during the last quarter. Institutional investors own 58.96% of the company’s stock.

International Business Machines Trading Up 0.5%

The business’s 50 day simple moving average is $263.03 and its 200 day simple moving average is $260.82. The stock has a market cap of $194.28 billion, a price-to-earnings ratio of 18.34, a PEG ratio of 2.23 and a beta of 0.68. The company has a quick ratio of 0.76, a current ratio of 0.80 and a debt-to-equity ratio of 1.75.

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.