International Business Machines (NYSE:IBM) Issues Quarterly Earnings Results

International Business Machines (NYSE:IBM) released its quarterly earnings results on Wednesday. The technology company reported $2.93 EPS for the quarter, hitting analysts’ consensus estimates of $2.93, FiscalAI reports. The company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a return on equity of 36.58% and a net margin of 15.52%.International Business Machines’s revenue was up 1.1% compared to the same quarter last year. During the same quarter last year, the firm posted $2.80 earnings per share.

Here are the key takeaways from International Business Machines’ conference call:

• IBM said Q2 revenue growth of 1% missed expectations, with the shortfall concentrated in software after large deals slipped late in the quarter.
• Management believes most of the missed software deals were deferred rather than lost, noting about a third have already closed in early Q3 and that recurring software demand remained healthy.
• IBM raised its full-year revenue growth outlook to 4%–5% and kept its free cash flow target to grow by about $1 billion, citing strong productivity actions and improved operating leverage.
• Underlying businesses still showed strength, including Red Hat growth acceleration, record consulting signings with GenAI making up about half of signings, and distributed infrastructure posting record revenue growth.
• IBM reiterated confidence in its long-term growth engines, highlighting double-digit software growth potential, a strong IBM Z refresh cycle, and major investments in quantum and AI-driven security opportunities like Project Lightwell.

International Business Machines Stock Performance

Shares of IBM stock opened at $206.70 on Friday. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. The company has a fifty day moving average price of $263.03 and a two-hundred day moving average price of $260.82. The stock has a market cap of $194.28 billion, a P/E ratio of 18.34, a P/E/G ratio of 2.23 and a beta of 0.68. International Business Machines has a one year low of $199.19 and a one year high of $332.46.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a dividend of $1.69 per share. 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 dividend payout ratio is 59.77%.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM announced it will acquire HRL Laboratories to strengthen its quantum computing efforts, adding silicon-spin qubit and sensing expertise that could support longer-term growth. IBM (IBM) Is Buying HRL Laboratories To Broaden Its Quantum Computing Bet
• Positive Sentiment: IBM maintained confidence in its AI strategy and recurring software strength, with management saying the demand slowdown appears delayed rather than destroyed. IBM’s Krishna tries to reassure investors that AI won’t disrupt company’s software unit
• Neutral Sentiment: IBM declared a quarterly dividend of $1.69 per share, reinforcing its income appeal for shareholders. IBM to Acquire HRL Laboratories to Power the Future of Quantum
• Negative Sentiment: IBM cut its 2026 revenue growth outlook after quarterly revenue came in below expectations, raising concerns that AI-related customer spending is crowding out traditional infrastructure and software demand. IBM cuts annual revenue growth forecast as customers prioritize AI infrastructure spending
• Negative Sentiment: Legal scrutiny increased, with multiple firms announcing investigations into possible securities fraud tied to IBM’s disclosures and stock decline, which can add headline risk. IBM Fraud Notification: IBM Investigated for Fraud Over Misrepresentations about IBM Z Product Slowdown

Institutional Trading of International Business Machines

A number of hedge funds have recently modified their holdings of IBM. Price T Rowe Associates Inc. MD increased its position in International Business Machines by 83.4% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company’s stock worth $1,663,847,000 after acquiring an additional 2,553,552 shares during the period. Amundi grew its position in shares of International Business Machines by 17.9% during the 3rd quarter. Amundi now owns 4,777,516 shares of the technology company’s stock worth $1,382,695,000 after purchasing an additional 725,191 shares in the last quarter. Alyeska Investment Group L.P. bought a new position in shares of International Business Machines during the third quarter worth approximately $97,668,000. Voloridge Investment Management LLC bought a new stake in shares of International Business Machines in the fourth quarter valued at approximately $94,195,000. Finally, Polar Capital Holdings Plc grew its position in International Business Machines by 523.1% during the third quarter. Polar Capital Holdings Plc now owns 334,273 shares of the technology company’s stock worth $94,318,000 after buying an additional 280,626 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on IBM. Royal Bank Of Canada reiterated an “outperform” rating and issued a $270.00 price target on shares of International Business Machines in a report on Tuesday. Needham & Company LLC started coverage on International Business Machines in a report on Wednesday, June 3rd. They set a “buy” rating for the company. KeyCorp lowered International Business Machines to a “sector weight” rating in a research report on Tuesday, June 23rd. Wall Street Zen cut International Business Machines from a “hold” rating to a “sell” rating in a research note on Saturday, July 18th. Finally, HSBC set a $175.00 price target on International Business Machines and gave the stock a “reduce” rating in a research report on Thursday, July 16th. Fifteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $269.80.

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.