Zacks Research Issues Positive Forecast for IBM Earnings

International Business Machines Co. (NYSE:IBM) – Equities researchers at Zacks Research boosted their Q2 2025 earnings per share (EPS) estimates for shares of International Business Machines in a report issued on Tuesday, March 25th. Zacks Research analyst S. Bose now expects that the technology company will post earnings per share of $2.60 for the quarter, up from their previous forecast of $2.55. The consensus estimate for International Business Machines’ current full-year earnings is $10.78 per share. Zacks Research also issued estimates for International Business Machines’ FY2025 earnings at $10.51 EPS and Q2 2026 earnings at $2.99 EPS.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, January 29th. The technology company reported $3.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.77 by $0.15. International Business Machines had a net margin of 9.60% and a return on equity of 38.99%.

IBM has been the subject of several other reports. Morgan Stanley boosted their price target on International Business Machines from $217.00 to $228.00 and gave the company an “equal weight” rating in a research note on Thursday, January 30th. UBS Group boosted their target price on shares of International Business Machines from $150.00 to $160.00 and gave the company a “sell” rating in a research report on Tuesday, January 14th. Wedbush began coverage on shares of International Business Machines in a research report on Monday, February 3rd. They set an “outperform” rating on the stock. Royal Bank of Canada reissued an “outperform” rating and issued a $250.00 price objective on shares of International Business Machines in a report on Monday, January 27th. Finally, Erste Group Bank raised shares of International Business Machines from a “hold” rating to a “strong-buy” rating in a report on Monday, March 17th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating, seven have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $231.44.

International Business Machines Price Performance

International Business Machines stock opened at $243.83 on Thursday. The company has a market capitalization of $226.10 billion, a price-to-earnings ratio of 38.04, a PEG ratio of 5.81 and a beta of 0.74. The company has a current ratio of 1.04, a quick ratio of 1.00 and a debt-to-equity ratio of 1.82. International Business Machines has a 12 month low of $162.62 and a 12 month high of $266.45. The stock’s 50 day moving average is $249.51 and its 200-day moving average is $231.29.

Institutional Trading of International Business Machines

Hedge funds have recently made changes to their positions in the company. Capital World Investors boosted its position in International Business Machines by 413.5% during the 4th quarter. Capital World Investors now owns 11,984,609 shares of the technology company’s stock worth $2,634,577,000 after buying an additional 9,650,534 shares during the period. Norges Bank acquired a new position in shares of International Business Machines during the fourth quarter worth $1,236,176,000. Raymond James Financial Inc. bought a new stake in shares of International Business Machines in the fourth quarter worth $592,746,000. Holocene Advisors LP acquired a new stake in International Business Machines in the third quarter valued at $573,306,000. Finally, Northern Trust Corp raised its position in International Business Machines by 18.6% during the 4th quarter. Northern Trust Corp now owns 10,845,993 shares of the technology company’s stock worth $2,384,275,000 after purchasing an additional 1,704,209 shares during the last quarter. 58.96% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, SVP Robert David Thomas sold 26,543 shares of the business’s stock in a transaction on Monday, March 3rd. The stock was sold at an average price of $253.01, for a total transaction of $6,715,644.43. Following the sale, the senior vice president now owns 45,007 shares in the company, valued at $11,387,221.07. The trade was a 37.10 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.18% of the stock is owned by corporate insiders.

International Business Machines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, March 10th. Investors of record on Monday, February 10th were issued a dividend of $1.67 per share. This represents a $6.68 annualized dividend and a dividend yield of 2.74%. The ex-dividend date was Monday, February 10th. International Business Machines’s dividend payout ratio (DPR) is presently 104.21%.

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.