International Business Machines (NYSE:IBM) Issues Q2 2026 Earnings Guidance

International Business Machines (NYSE:IBM) issued an update on its second quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 2.930-2.930 for the period, compared to the consensus estimate of 3.020. The company issued revenue guidance of $17.2 billion-$17.2 billion, compared to the consensus revenue estimate of $17.9 billion.

International Business Machines Trading Down 2.7%

IBM stock opened at $211.25 on Thursday. The company has a market capitalization of $198.55 billion, a PE ratio of 18.68, a price-to-earnings-growth ratio of 2.10 and a beta of 0.68. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. International Business Machines has a one year low of $211.03 and a one year high of $332.46. The company’s 50 day moving average price is $264.41 and its two-hundred day moving average price is $264.54.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.81 by $0.10. International Business Machines had a net margin of 15.61% and a return on equity of 37.23%. The company had revenue of $15.92 billion during the quarter, compared to analysts’ expectations of $15.60 billion. During the same quarter in the prior year, the company earned $1.60 EPS. The firm’s revenue was up 9.5% on a year-over-year basis. As a group, analysts predict that International Business Machines will post 12.43 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were paid a $1.69 dividend. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 dividend on an annualized basis and a yield of 3.2%. International Business Machines’s payout ratio is presently 59.77%.

Analysts Set New Price Targets

Several brokerages recently commented on IBM. Oppenheimer downgraded shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research report on Wednesday. Weiss Ratings lowered shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, June 24th. BMO Capital Markets dropped their target price on International Business Machines from $290.00 to $270.00 and set a “market perform” rating on the stock in a research report on Thursday, April 23rd. Piper Sandler raised shares of International Business Machines to an “overweight” rating in a research report on Tuesday, June 23rd. Finally, Susquehanna assumed coverage on International Business Machines in a report on Friday, July 10th. They issued a “neutral” rating and a $303.00 target price on the stock. Fourteen investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $307.17.

Key Headlines Impacting International Business Machines

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

• Positive Sentiment: IBM continued to highlight long-term AI and quantum computing initiatives, including new Power systems, AI automation software, and its broader enterprise AI roadmap, which could support future growth if demand stabilizes. IBM Launches New Power Systems and Software Built for Enterprises to Address Risk, Productivity, and Flexibility
• Positive Sentiment: Some analysts still see meaningful upside after the selloff, with several notes reaffirming bullish long-term views and higher price targets despite the near-term shock. International Business Machines’ (IBM) “Outperform” Rating Reaffirmed at Oppenheimer
• Neutral Sentiment: IBM’s CEO said the company “faltered” and that some large deals were delayed late in the quarter, but management suggested the issue was tied to customer budget timing rather than a full collapse in demand. IBM expects second-quarter revenue below estimates
• Neutral Sentiment: The company’s upcoming full earnings report on July 22 could clarify whether the weak preliminary results were a one-quarter setback or a broader slowdown. What’s Next for IBM Stock After 25% Collapse
• Negative Sentiment: IBM’s preliminary Q2 revenue of about $17.2 billion missed estimates, while adjusted EPS also came in below expectations, triggering a historic selloff in the stock. IBM expects second-quarter revenue below estimates
• Negative Sentiment: HSBC downgraded IBM to Reduce and cut its price target, reflecting concerns that software and infrastructure demand are softening as enterprise spending priorities shift. HSBC downgrades IBM to Reduce, says “synthetic IBM” offers better value
• Negative Sentiment: The weak update also sparked securities-fraud investigations and broader pressure on software and IT peers, adding to investor concern that IBM’s issues may not be isolated. Securities Fraud Investigation Into International Business Machines Corporation (IBM) Announced

Institutional Investors Weigh In On International Business Machines

Several large investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC raised its stake in shares of International Business Machines by 12.4% during the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock worth $4,619,000 after acquiring an additional 2,323 shares in the last quarter. Sivia Capital Partners LLC increased its position in shares of International Business Machines by 10.6% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock valued at $571,000 after acquiring an additional 186 shares during the period. Jump Financial LLC purchased a new position in International Business Machines in the 2nd quarter worth $211,000. Ieq Capital LLC raised its stake in International Business Machines by 2.2% in the 2nd quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock worth $11,383,000 after acquiring an additional 843 shares during the last quarter. Finally, Vivaldi Capital Management LP lifted its position in International Business Machines by 11.6% during the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock worth $300,000 after acquiring an additional 106 shares during the period. 58.96% of the stock is owned by hedge funds and other 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.