Zacks Research Issues Optimistic Forecast for IBM Earnings

International Business Machines Co. (NYSE:IBM) – Investment analysts at Zacks Research boosted their Q2 2026 EPS estimates for shares of International Business Machines in a research report issued to clients and investors on Wednesday, February 26th. Zacks Research analyst S. Bose now anticipates that the technology company will post earnings of $2.97 per share for the quarter, up from their prior forecast of $2.96. The consensus estimate for International Business Machines’ current full-year earnings is $10.78 per share.

A number of other brokerages have also weighed in on IBM. The Goldman Sachs Group reissued a “buy” rating on shares of International Business Machines in a report on Wednesday, February 5th. Oppenheimer assumed coverage on shares of International Business Machines in a report on Tuesday, February 11th. They issued an “outperform” rating and a $320.00 price target for the company. Royal Bank of Canada reiterated an “outperform” rating and set a $250.00 price target on shares of International Business Machines in a research report on Monday, January 27th. Wedbush began coverage on International Business Machines in a research report on Monday, February 3rd. They issued an “outperform” rating for the company. Finally, Bank of America increased their price target on shares of International Business Machines from $260.00 to $270.00 and gave the company a “buy” rating in a research note on Thursday, January 30th. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $231.44.

International Business Machines Price Performance

Shares of IBM stock opened at $250.04 on Monday. The stock’s 50-day simple moving average is $238.93 and its 200-day simple moving average is $224.98. The firm has a market capitalization of $231.85 billion, a price-to-earnings ratio of 39.01, a PEG ratio of 5.81 and a beta of 0.76. International Business Machines has a fifty-two week low of $162.62 and a fifty-two week high of $265.72. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.00 and a current ratio of 1.04.

International Business Machines (NYSE:IBM) last released its quarterly earnings results on Wednesday, January 29th. The technology company reported $3.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.77 by $0.15. International Business Machines had a net margin of 9.60% and a return on equity of 38.99%.

Institutional Investors Weigh In On International Business Machines

Hedge funds have recently made changes to their positions in the business. Compass Financial Services Inc acquired a new position in shares of International Business Machines during the fourth quarter worth about $26,000. Hazlett Burt & Watson Inc. raised its holdings in shares of International Business Machines by 1,054.5% in the third quarter. Hazlett Burt & Watson Inc. now owns 127 shares of the technology company’s stock worth $29,000 after acquiring an additional 116 shares during the last quarter. Hara Capital LLC acquired a new position in shares of International Business Machines in the third quarter valued at approximately $29,000. Vision Financial Markets LLC acquired a new position in International Business Machines in the fourth quarter valued at $31,000. Finally, Avondale Wealth Management grew its holdings in International Business Machines by 56.0% in the fourth quarter. Avondale Wealth Management now owns 156 shares of the technology company’s stock valued at $34,000 after purchasing an additional 56 shares during the period. Institutional investors and hedge funds own 58.96% of the company’s stock.

Insider Buying and Selling at International Business Machines

In related news, SVP Robert David Thomas sold 26,543 shares of the stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $253.01, for a total transaction of $6,715,644.43. Following the completion of the sale, the senior vice president now owns 45,007 shares in the company, valued at $11,387,221.07. This represents a 37.10 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.07% of the stock is owned by insiders.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, March 10th. Investors of record on Monday, February 10th will be paid a $1.67 dividend. The ex-dividend date is Monday, February 10th. This represents a $6.68 dividend on an annualized basis and a yield of 2.67%. International Business Machines’s dividend payout ratio is currently 104.21%.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.