International Business Machines (NYSE:IBM) Shares Up 5.2% – Still a Buy?

International Business Machines Corporation (NYSE:IBM) traded up 5.2% during mid-day trading on Tuesday . The company traded as high as $228.98 and last traded at $227.42. 13,101,204 shares traded hands during trading, an increase of 59% from the average daily volume of 8,228,092 shares. The stock had previously closed at $216.28.

Trending Headlines about International Business Machines

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

• Positive Sentiment: IBM and partners including Algorithmiq, Qedma, RIKEN and the University of Chicago reported multiple quantum-advantage results. The demonstrations used IBM quantum systems, error-reduction software and logical circuits to simulate quantum materials and perform calculations that the companies say are beyond practical classical-computing capabilities. The developments strengthen IBM’s long-term quantum-computing positioning, although revenue and commercialization remain uncertain. IBM and Algorithmiq Demonstrate Quantum Advantage
• Positive Sentiment: IBM’s 2026 Cost of a Data Breach research found that AI-enabled attacks are rising and are more expensive than average breaches. The findings could support demand for IBM’s cybersecurity, AI-security and consulting offerings, but the report is industry research rather than a new contract or financial forecast. IBM 2026 Cost of a Data Breach Report
• Neutral Sentiment: Circle acquired IBM’s blockchain patent portfolio, comprising nearly 1,000 issued patents and more than 680 patent families. The transaction monetizes IBM’s intellectual property and gives Circle technology for digital-asset infrastructure, but the financial impact for IBM was not disclosed. Circle’s IBM Patent Deal
• Negative Sentiment: The quantum announcements have not offset investor concerns about IBM’s growth profile. Recent quarterly results matched EPS expectations but revenue of $17.16 billion fell short of the $17.46 billion consensus, while year-over-year revenue growth was only 1.1%. Coverage also noted that management’s latest earnings discussion provided less visibility into generative-AI progress.
• Negative Sentiment: Erste Group Bank slightly reduced its fiscal 2026 and 2027 IBM EPS forecasts, adding to pressure on estimates even though the revisions were modest.
• Negative Sentiment: Pomerantz and Bleichmar Fonti & Auld announced investigations into potential securities-law violations related to IBM’s performance and an alleged slowdown in its IBM Z product business. The investigations do not establish wrongdoing, but they increase headline and litigation risk. Pomerantz IBM Investor Alert

Analyst Upgrades and Downgrades

IBM has been the subject of a number of research reports. Needham & Company LLC initiated coverage on International Business Machines in a research note on Wednesday, June 3rd. They issued a “buy” rating for the company. HSBC set a $175.00 price target on shares of International Business Machines and gave the company a “reduce” rating in a research report on Thursday, July 16th. Citigroup lowered their price target on shares of International Business Machines from $255.00 to $245.00 and set a “buy” rating on the stock in a report on Friday, July 24th. Weiss Ratings cut International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, June 24th. Finally, Argus decreased their target price on International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a research note on Thursday, July 16th. Fifteen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $265.40.

International Business Machines Stock Down 2.1%

The stock has a market cap of $208.93 billion, a price-to-earnings ratio of 19.68, a price-to-earnings-growth ratio of 2.23 and a beta of 0.68. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The firm has a 50 day simple moving average of $262.92 and a two-hundred day simple moving average of $258.62.

International Business Machines (NYSE:IBM) last released its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting the consensus estimate of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The company had revenue of $17.16 billion during the quarter, compared to analysts’ expectations of $17.46 billion. During the same quarter in the prior year, the company earned $2.80 earnings per share. The business’s quarterly revenue was up 1.1% compared to the same quarter last year. As a group, sell-side analysts expect that International Business Machines Corporation will post 12.34 EPS for the current year.

International Business Machines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be paid a $1.69 dividend. The ex-dividend date is Monday, August 10th. This represents a $6.76 annualized dividend and a yield of 3.0%. International Business Machines’s payout ratio is 59.98%.

Institutional Trading of International Business Machines

Several institutional investors and hedge funds have recently modified their holdings of the business. Family CFO Inc bought a new stake in International Business Machines in the fourth quarter worth approximately $25,000. Basepoint Wealth LLC bought a new stake in International Business Machines during the 4th quarter worth approximately $25,000. Portus Wealth Advisors LLC bought a new position in shares of International Business Machines in the first quarter worth approximately $26,000. Joseph Group Capital Management purchased a new position in International Business Machines in the fourth quarter worth $28,000. Finally, Cornerstone Financial Management LLC purchased a new position in shares of International Business Machines during the 4th quarter valued at about $28,000. 58.96% of the stock is currently owned by institutional investors.

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.