Erste Group Bank Has Bearish Outlook for IBM FY2026 Earnings

International Business Machines Corporation (NYSE:IBM) – Research analysts at Erste Group Bank lowered their FY2026 earnings per share estimates for International Business Machines in a note issued to investors on Wednesday, August 5th. Erste Group Bank analyst H. Engel now forecasts that the technology company will post earnings of $12.28 per share for the year, down from their previous estimate of $12.36. The consensus estimate for International Business Machines’ current full-year earnings is $12.33 per share.

A number of other equities research analysts also recently issued reports on IBM. Royal Bank Of Canada reissued an “outperform” rating and issued a $270.00 price target on shares of International Business Machines in a report on Tuesday, July 21st. Wedbush set a $350.00 price objective on International Business Machines in a report on Tuesday, June 2nd. Citigroup cut their target price on shares of International Business Machines from $255.00 to $245.00 and set a “buy” rating for the company in a research report on Friday, July 24th. Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a research note on Thursday, July 16th. Finally, KeyCorp downgraded International Business Machines to a “sector weight” rating in a research report on Tuesday, June 23rd. Fifteen investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $265.40.

International Business Machines Stock Down 0.6%

IBM stock opened at $235.76 on Monday. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The firm has a market capitalization of $222.12 billion, a PE ratio of 20.92, a PEG ratio of 2.33 and a beta of 0.70. International Business Machines has a twelve month low of $199.19 and a twelve month high of $332.46. The stock has a 50-day simple moving average of $256.92 and a two-hundred day simple moving average of $254.55.

International Business Machines (NYSE:IBM) last released its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The company had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same period in the previous year, the company posted $2.80 EPS. The firm’s revenue for the quarter was up 1.1% compared to the same quarter last year.

Institutional Trading of International Business Machines

Institutional investors have recently added to or reduced their stakes in the business. Family CFO Inc bought a new position in International Business Machines during the 4th quarter worth approximately $25,000. Basepoint Wealth LLC bought a new stake in International Business Machines in the fourth quarter valued at approximately $25,000. Portus Wealth Advisors LLC purchased a new stake in shares of International Business Machines during the first quarter valued at approximately $26,000. Harborfront Financial Group LLC bought a new position in shares of International Business Machines in the second quarter worth approximately $27,000. Finally, Joseph Group Capital Management bought a new position in shares of International Business Machines in the fourth quarter worth approximately $28,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines’s payout ratio is presently 59.98%.

More International Business Machines News

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

• Positive Sentiment: IBM’s return to Canada’s bond market after 14 years demonstrates continued access to international financing and places the company amid strong demand for “Maple” bonds from foreign issuers. The move could help diversify funding sources, although additional borrowing may also increase leverage. IBM Returns to Canada’s Bond Market After 14 Years as Other Tech Giants Rush In
• Positive Sentiment: IBM’s CEO indicated that quantum computing could begin making a measurable contribution to revenue and profit in the coming years. That outlook reinforces quantum computing as a potentially significant long-term growth opportunity, though it is unlikely to materially change near-term results. This Is When IBM’s CEO Says Quantum Computing Could Start to Have a Measurable Impact on Its Bottom Line
• Neutral Sentiment: The U.S. administration’s reported $2 billion quantum-computing initiative could expand industry investment and validate IBM’s technology focus, but it also highlights an ambitious competitive race with uncertain commercialization timelines. Inside the Trump administration’s $2 billion push to build the world’s first useful quantum computer
• Negative Sentiment: IBM’s shares went ex-dividend on August 10 for a $1.69-per-share cash payment scheduled for September 10. The mechanical ex-dividend adjustment can weigh on the stock even though it does not represent a deterioration in the company’s operations. International Business Machines Corp’s Dividend Analysis
• Negative Sentiment: Broadcom is expanding security capabilities in VMware Cloud Foundation, intensifying competition with IBM in enterprise infrastructure and cloud-related markets. Stronger rival offerings could pressure IBM’s growth prospects and pricing power. Broadcom Boosts VCF Security: Can it Fend Off Nutanix and IBM?
• Negative Sentiment: Erste Group Bank expressed a negative outlook on IBM’s fiscal 2026 earnings, adding to concerns about limited near-term earnings momentum. Erste Group Bank Has Negative Outlook of IBM FY2026 Earnings
• Negative Sentiment: A law firm announced a securities-fraud investigation following IBM’s major stock decline. The announcement is not proof of wrongdoing, but it may add legal and reputational overhang. IBM Securities Fraud Investigation

About International Business Machines

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.