Zacks Research Issues Negative Estimate for IBM Earnings

International Business Machines Co. (NYSE:IBM) – Stock analysts at Zacks Research cut their Q1 2025 earnings per share estimates for International Business Machines in a report released on Thursday, December 5th. Zacks Research analyst S. Bose now forecasts that the technology company will post earnings of $1.57 per share for the quarter, down from their prior estimate of $1.60. The consensus estimate for International Business Machines’ current full-year earnings is $10.12 per share. Zacks Research also issued estimates for International Business Machines’ Q3 2025 earnings at $2.49 EPS, Q3 2026 earnings at $2.65 EPS and FY2026 earnings at $11.22 EPS.

International Business Machines (NYSE:IBM) last issued its quarterly earnings results on Wednesday, October 23rd. The technology company reported $2.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.27 by $0.03. The company had revenue of $14.97 billion for the quarter, compared to analyst estimates of $15.08 billion. International Business Machines had a net margin of 10.22% and a return on equity of 40.52%. The business’s revenue for the quarter was up 1.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.20 earnings per share.

Other equities analysts also recently issued research reports about the stock. Bernstein Bank boosted their price target on shares of International Business Machines from $185.00 to $210.00 and gave the stock a “market perform” rating in a research note on Thursday, October 3rd. Morgan Stanley lowered their target price on International Business Machines from $217.00 to $208.00 and set an “equal weight” rating for the company in a research note on Thursday, October 24th. The Goldman Sachs Group increased their price target on International Business Machines from $220.00 to $250.00 and gave the company a “buy” rating in a research report on Monday, September 30th. Jefferies Financial Group boosted their price objective on International Business Machines from $200.00 to $245.00 and gave the stock a “hold” rating in a research report on Monday, October 21st. Finally, BMO Capital Markets raised their target price on shares of International Business Machines from $235.00 to $260.00 and gave the company a “market perform” rating in a report on Thursday, October 24th. Three investment analysts have rated the stock with a sell rating, nine have given a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $208.12.

International Business Machines Price Performance

Shares of IBM opened at $238.04 on Monday. The company has a market cap of $220.10 billion, a P/E ratio of 34.65, a PEG ratio of 5.24 and a beta of 0.73. International Business Machines has a fifty-two week low of $157.88 and a fifty-two week high of $238.38. The company has a quick ratio of 1.01, a current ratio of 1.06 and a debt-to-equity ratio of 2.16. The firm’s 50 day moving average price is $221.74 and its 200 day moving average price is $199.85.

Institutional Investors Weigh In On International Business Machines

A number of institutional investors and hedge funds have recently made changes to their positions in IBM. International Assets Investment Management LLC raised its stake in shares of International Business Machines by 20,324.5% during the third quarter. International Assets Investment Management LLC now owns 2,715,636 shares of the technology company’s stock worth $600,373,000 after purchasing an additional 2,702,340 shares during the last quarter. Holocene Advisors LP acquired a new position in International Business Machines in the 3rd quarter valued at $573,306,000. State Street Corp raised its position in International Business Machines by 2.2% during the 3rd quarter. State Street Corp now owns 55,671,883 shares of the technology company’s stock worth $12,307,940,000 after buying an additional 1,200,803 shares during the last quarter. Thrivent Financial for Lutherans lifted its stake in shares of International Business Machines by 306.3% in the 2nd quarter. Thrivent Financial for Lutherans now owns 1,401,798 shares of the technology company’s stock worth $242,441,000 after acquiring an additional 1,056,759 shares during the period. Finally, Eagle Asset Management Inc. boosted its holdings in shares of International Business Machines by 587.1% in the third quarter. Eagle Asset Management Inc. now owns 628,213 shares of the technology company’s stock valued at $134,262,000 after acquiring an additional 536,785 shares in the last quarter. 58.96% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at International Business Machines

In related news, SVP Nickle Jaclyn Lamoreaux sold 3,600 shares of the stock in a transaction on Friday, November 8th. The shares were sold at an average price of $215.20, for a total transaction of $774,720.00. Following the completion of the sale, the senior vice president now owns 25,390 shares in the company, valued at $5,463,928. This represents a 12.42 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.07% of the company’s stock.

International Business Machines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 10th. Stockholders of record on Tuesday, November 12th will be issued a $1.67 dividend. This represents a $6.68 annualized dividend and a dividend yield of 2.81%. The ex-dividend date of this dividend is Tuesday, November 12th. International Business Machines’s payout ratio is currently 97.23%.

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.