Zacks Research Issues Optimistic Outlook for IBM Earnings

International Business Machines Co. (NYSE:IBM) – Research analysts at Zacks Research increased their Q2 2025 earnings per share (EPS) estimates for shares of International Business Machines in a research report issued to clients and investors on Tuesday, March 25th. Zacks Research analyst S. Bose now forecasts that the technology company will post earnings of $2.60 per share for the quarter, up from their prior estimate of $2.55. The consensus estimate for International Business Machines’ current full-year earnings is $10.78 per share. Zacks Research also issued estimates for International Business Machines’ FY2025 earnings at $10.51 EPS and Q2 2026 earnings at $2.99 EPS.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Wednesday, January 29th. The technology company reported $3.92 earnings per share for the quarter, beating 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%.

Several other analysts have also recently weighed in on the company. Erste Group Bank raised International Business Machines from a “hold” rating to a “strong-buy” rating in a report on Monday, March 17th. Sanford C. Bernstein boosted their target price on shares of International Business Machines from $210.00 to $215.00 and gave the company a “market perform” rating in a research report on Friday, January 3rd. The Goldman Sachs Group restated a “buy” rating on shares of International Business Machines in a research note on Wednesday, February 5th. Oppenheimer initiated coverage on shares of International Business Machines in a research note on Tuesday, February 11th. They issued an “outperform” rating and a $320.00 price objective for the company. Finally, Royal Bank of Canada restated an “outperform” rating and set a $250.00 target price on shares of International Business Machines in a research report on Monday, January 27th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, International Business Machines currently has an average rating of “Hold” and a consensus price target of $231.44.

International Business Machines Trading Down 1.6 %

Shares of IBM stock opened at $246.30 on Thursday. International Business Machines has a 12-month low of $162.62 and a 12-month high of $266.45. The firm has a 50 day moving average price of $249.12 and a two-hundred day moving average price of $231.01. The company has a quick ratio of 1.00, a current ratio of 1.04 and a debt-to-equity ratio of 1.82. The company has a market capitalization of $228.38 billion, a PE ratio of 38.42, a price-to-earnings-growth ratio of 5.81 and a beta of 0.74.

International Business Machines Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 10th. Investors of record on Monday, February 10th were issued a $1.67 dividend. The ex-dividend date of this dividend was Monday, February 10th. This represents a $6.68 dividend on an annualized basis and a yield of 2.71%. International Business Machines’s dividend payout ratio (DPR) is presently 104.21%.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert David Thomas sold 26,543 shares of International Business Machines stock in a transaction dated Monday, March 3rd. The stock was sold at an average price of $253.01, for a total transaction of $6,715,644.43. Following the transaction, the senior vice president now directly owns 45,007 shares of the company’s stock, valued at approximately $11,387,221.07. The trade was a 37.10 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.18% of the company’s stock.

Hedge Funds Weigh In On International Business Machines

Institutional investors have recently added to or reduced their stakes in the business. Compass Financial Services Inc acquired a new position in International Business Machines during the 4th quarter valued at about $26,000. Vision Financial Markets LLC bought a new stake in International Business Machines in the 4th quarter worth about $31,000. Avondale Wealth Management increased its position in shares of International Business Machines by 56.0% during the fourth quarter. Avondale Wealth Management now owns 156 shares of the technology company’s stock valued at $34,000 after acquiring an additional 56 shares during the last quarter. Valued Wealth Advisors LLC raised its stake in shares of International Business Machines by 134.3% during the 4th quarter. Valued Wealth Advisors LLC now owns 157 shares of the technology company’s stock worth $35,000 after purchasing an additional 90 shares during the period. Finally, Rialto Wealth Management LLC bought a new stake in International Business Machines in the fourth quarter worth about $35,000. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Company Profile

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.