What is Erste Group Bank’s Estimate for IBM FY2026 Earnings?

International Business Machines Corporation (NYSE:IBM) – Stock analysts at Erste Group Bank raised their FY2026 earnings per share (EPS) estimates for International Business Machines in a research note issued on Wednesday, October 21st. Erste Group Bank analyst H. Engel now anticipates that the technology company will earn $12.30 per share for the year, up from their previous forecast of $12.27. The consensus estimate for International Business Machines’ current full-year earnings is $12.41 per share.

Several other brokerages have also commented on IBM. Wall Street Zen upgraded International Business Machines from a “sell” rating to a “hold” rating in a research note on Saturday. Yorkville Ives assumed coverage on shares of International Business Machines in a research note on Monday, October 5th. They issued an “outperform” rating and a $275.00 price objective for the company. Robert W. Baird increased their target price on shares of International Business Machines from $230.00 to $260.00 and gave the stock a “neutral” rating in a report on Thursday, October 22nd. BMO Capital Markets increased their target price on shares of International Business Machines from $230.00 to $265.00 and gave the stock a “market perform” rating in a report on Thursday. Finally, Barclays raised their target price on shares of International Business Machines from $262.00 to $277.00 and gave the company an “overweight” rating in a research report on Thursday. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $266.12.

International Business Machines Price Performance

Shares of IBM stock opened at $253.04 on Monday. International Business Machines has a twelve month low of $199.19 and a twelve month high of $332.46. The company has a current ratio of 0.85, a quick ratio of 0.80 and a debt-to-equity ratio of 1.57. The stock has a fifty day simple moving average of $233.06 and a two-hundred day simple moving average of $251.16. The stock has a market capitalization of $239.15 billion, a price-to-earnings ratio of 20.60, a P/E/G ratio of 2.50 and a beta of 0.73.

International Business Machines (NYSE:IBM) last released its quarterly earnings data on Wednesday, October 21st. The technology company reported $2.95 EPS for the quarter, topping the consensus estimate of $2.85 by $0.10. The company had revenue of $17.10 billion for the quarter, compared to the consensus estimate of $16.82 billion. International Business Machines had a return on equity of 34.37% and a net margin of 15.99%. International Business Machines’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period last year, the business posted $2.65 EPS.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be given a $1.69 dividend. This represents a $6.76 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, November 10th. International Business Machines’s payout ratio is presently 57.63%.

Insider Activity at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the company’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the sale, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. This represents a 34.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Insiders own 0.27% of the company’s stock.

Institutional Investors Weigh In On International Business Machines

Institutional investors have recently added to or reduced their stakes in the stock. Ashton Thomas Securities LLC grew its stake in International Business Machines by 4.2% during the 3rd quarter. Ashton Thomas Securities LLC now owns 3,676 shares of the technology company’s stock worth $808,000 after buying an additional 148 shares during the last quarter. Black Diamond Financial LLC raised its stake in International Business Machines by 22.7% in the third quarter. Black Diamond Financial LLC now owns 1,361 shares of the technology company’s stock valued at $299,000 after buying an additional 252 shares during the last quarter. Lodestar Private Asset Management LLC raised its stake in International Business Machines by 7.8% in the third quarter. Lodestar Private Asset Management LLC now owns 3,178 shares of the technology company’s stock valued at $699,000 after buying an additional 229 shares during the last quarter. Abundance Wealth Counselors raised its stake in International Business Machines by 8.3% in the third quarter. Abundance Wealth Counselors now owns 9,009 shares of the technology company’s stock valued at $1,981,000 after buying an additional 688 shares during the last quarter. Finally, Center for Financial Planning Inc. boosted its holdings in International Business Machines by 3.2% in the third quarter. Center for Financial Planning Inc. now owns 3,224 shares of the technology company’s stock worth $709,000 after acquiring an additional 100 shares in the last quarter. Institutional investors own 58.96% of the company’s stock.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM’s software segment and hybrid-cloud and enterprise AI consulting businesses remain the company’s main growth engines, supporting the case that its multiyear transformation is generating more durable cash flow. IBM Fixed Its Plumbing; Intel Became Big Tech’s Real Structural Trap
• Positive Sentiment: Quantum computing is being highlighted as a potential long-term catalyst. Progress in the technology could create a significant new growth opportunity beyond IBM’s existing cloud and consulting operations, although commercialization remains ahead. IBM Continues to Plug Along, but Its Quantum Computing Bet Could Be the Real Catalyst
• Positive Sentiment: CEO Arvind Krishna’s view that open-weight AI models deliver performance close to frontier models at substantially lower cost could encourage broader enterprise AI adoption, potentially benefiting IBM’s consulting and implementation services. IBM CEO Says Open AI Models Are 90% as Good as Frontier Models
• Neutral Sentiment: IBM is attracting increased investor attention, while analysts continue to assess its earnings outlook and competitive position relative to Salesforce and other technology companies. IBM Is Attracting Investor Attention
• Negative Sentiment: Valuation is a concern: commentary questions whether IBM is already priced above its fundamentals and whether investors are paying too much relative to rivals. That could limit near-term upside, particularly because quantum computing is a longer-term opportunity rather than an immediate earnings driver. Are You Overpaying For IBM Stock Versus Its Rivals?

About International Business Machines

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.