Zacks Research Brokers Reduce Earnings Estimates for IBM

International Business Machines Co. (NYSE:IBM) – Equities research analysts at Zacks Research dropped their Q1 2025 EPS estimates for shares of International Business Machines in a report issued 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 forecast 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 released its quarterly earnings results on Wednesday, October 23rd. The technology company reported $2.30 EPS for the quarter, topping analysts’ consensus estimates of $2.27 by $0.03. International Business Machines had a net margin of 10.22% and a return on equity of 40.52%. The business had revenue of $14.97 billion during the quarter, compared to analysts’ expectations of $15.08 billion. During the same quarter in the previous year, the company earned $2.20 EPS. The business’s quarterly revenue was up 1.5% compared to the same quarter last year.

A number of other equities analysts have also recently commented on the stock. Bank of America boosted their price target on shares of International Business Machines from $209.00 to $250.00 and gave the stock a “buy” rating in a research note on Wednesday, October 9th. Stifel Nicolaus boosted their price objective on shares of International Business Machines from $205.00 to $246.00 and gave the stock a “buy” rating in a report on Wednesday, October 16th. Morgan Stanley lowered their price objective on shares of International Business Machines from $217.00 to $208.00 and set an “equal weight” rating for the company in a report on Thursday, October 24th. BMO Capital Markets boosted their price objective on shares of International Business Machines from $235.00 to $260.00 and gave the stock a “market perform” rating in a report on Thursday, October 24th. Finally, Jefferies Financial Group boosted their price objective on shares of International Business Machines from $200.00 to $245.00 and gave the stock a “hold” rating in a report on Monday, October 21st. Three analysts have rated the stock with a sell rating, nine have issued a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $208.12.

International Business Machines Price Performance

IBM stock opened at $231.76 on Monday. The company has a debt-to-equity ratio of 2.16, a current ratio of 1.06 and a quick ratio of 1.01. International Business Machines has a one year low of $157.88 and a one year high of $239.35. The stock has a market cap of $214.30 billion, a PE ratio of 33.73, a P/E/G ratio of 5.34 and a beta of 0.73. The firm has a 50 day simple moving average of $221.92 and a two-hundred day simple moving average of $200.27.

International Business Machines Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, December 10th. Investors of record on Tuesday, November 12th were issued a dividend of $1.67 per share. The ex-dividend date was Tuesday, November 12th. This represents a $6.68 dividend on an annualized basis and a yield of 2.88%. International Business Machines’s dividend payout ratio is currently 97.23%.

Insider Activity at International Business Machines

In other International Business Machines news, SVP Nickle Jaclyn Lamoreaux sold 3,600 shares of the company’s stock in a transaction on Friday, November 8th. The shares were sold at an average price of $215.20, for a total value of $774,720.00. Following the completion of the transaction, the senior vice president now directly owns 25,390 shares in the company, valued at approximately $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 can be accessed through the SEC website. 0.07% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Hazlett Burt & Watson Inc. grew its position in shares of International Business Machines by 1,054.5% in the 3rd quarter. Hazlett Burt & Watson Inc. now owns 127 shares of the technology company’s stock worth $29,000 after buying an additional 116 shares during the period. Hara Capital LLC purchased a new stake in shares of International Business Machines in the 3rd quarter worth about $29,000. Oliver Lagore Vanvalin Investment Group purchased a new stake in shares of International Business Machines in the 2nd quarter worth about $36,000. Capital Performance Advisors LLP purchased a new stake in shares of International Business Machines in the 3rd quarter worth about $43,000. Finally, Briaud Financial Planning Inc grew its position in shares of International Business Machines by 54.3% in the 2nd quarter. Briaud Financial Planning Inc now owns 284 shares of the technology company’s stock worth $49,000 after buying an additional 100 shares during the period. 58.96% of the stock is currently owned by institutional investors.

About International Business Machines

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.