Zacks Research Has Positive Outlook for IBM Q3 Earnings

International Business Machines Corporation (NYSE:IBM) – Analysts at Zacks Research upped their Q3 2026 earnings per share estimates for shares of International Business Machines in a research report issued on Monday, December 29th. Zacks Research analyst Team now expects that the technology company will earn $2.85 per share for the quarter, up from their previous forecast of $2.84. 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’ Q4 2026 earnings at $4.33 EPS, FY2026 earnings at $11.85 EPS, Q3 2027 earnings at $3.01 EPS and FY2027 earnings at $12.79 EPS.

International Business Machines (NYSE:IBM) last announced its quarterly earnings data on Wednesday, October 22nd. The technology company reported $2.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.45 by $0.20. International Business Machines had a return on equity of 37.76% and a net margin of 12.09%.The business had revenue of $16.33 billion during the quarter, compared to analysts’ expectations of $16.10 billion. During the same quarter last year, the business posted $2.30 EPS. The business’s quarterly revenue was up 9.1% compared to the same quarter last year.

IBM has been the topic of a number of other reports. UBS Group reissued a “sell” rating on shares of International Business Machines in a research report on Tuesday, December 9th. Oppenheimer began coverage on shares of International Business Machines in a research note on Friday, November 21st. They set an “outperform” rating and a $360.00 target price for the company. Weiss Ratings upgraded International Business Machines from a “hold (c+)” rating to a “buy (b)” rating in a research note on Saturday, October 25th. Erste Group Bank raised International Business Machines from a “hold” rating to a “buy” rating in a report on Friday, December 5th. Finally, Bank of America upped their price objective on International Business Machines from $310.00 to $315.00 and gave the stock a “buy” rating in a research report on Thursday, October 23rd. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, International Business Machines presently has an average rating of “Moderate Buy” and a consensus target price of $293.38.

International Business Machines Stock Down 1.2%

Shares of NYSE:IBM opened at $302.06 on Wednesday. International Business Machines has a fifty-two week low of $214.50 and a fifty-two week high of $324.90. The firm’s 50 day moving average price is $304.46 and its 200 day moving average price is $281.21. The company has a quick ratio of 0.89, a current ratio of 0.93 and a debt-to-equity ratio of 1.97. The stock has a market cap of $282.35 billion, a price-to-earnings ratio of 36.13, a price-to-earnings-growth ratio of 3.04 and a beta of 0.69.

Institutional Investors Weigh In On International Business Machines

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of International Business Machines in the 2nd quarter valued at $2,011,122,000. Capital World Investors grew its position in International Business Machines by 13.9% during the 3rd quarter. Capital World Investors now owns 17,045,156 shares of the technology company’s stock worth $4,809,461,000 after purchasing an additional 2,077,506 shares during the last quarter. Vanguard Group Inc. increased its stake in International Business Machines by 2.1% in the second quarter. Vanguard Group Inc. now owns 95,051,475 shares of the technology company’s stock valued at $28,019,274,000 after purchasing an additional 1,913,708 shares during the period. Laurel Wealth Advisors LLC increased its stake in International Business Machines by 27,928.2% in the second quarter. Laurel Wealth Advisors LLC now owns 1,903,116 shares of the technology company’s stock valued at $561,001,000 after purchasing an additional 1,896,326 shares during the period. Finally, First Trust Advisors LP raised its holdings in shares of International Business Machines by 39.6% in the third quarter. First Trust Advisors LP now owns 3,052,880 shares of the technology company’s stock valued at $861,401,000 after buying an additional 865,253 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, December 10th. Investors of record on Monday, November 10th were paid a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date was Monday, November 10th. International Business Machines’s dividend payout ratio (DPR) is currently 80.38%.

Key International Business Machines News

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

• Positive Sentiment: Analysts and media highlight IBM’s AI progress and positioning as a 2025 AI leader, which supports expectations for revenue growth and multiple expansion. IBM Became an AI Powerhouse in 2025
• Positive Sentiment: High‑profile endorsements (Jim Cramer calling IBM “still cheap” / undervalued) can lift investor sentiment and attract bargain hunters. IBM Is Still Undervalued, According to Jim Cramer Jim Cramer on International Business Machines: “It’s Still Cheap”
• Positive Sentiment: Progress and strategy in quantum computing and enterprise partnerships (e.g., AI learning tools, diversified quantum roadmap) bolster IBM’s long‑term growth narrative vs. pure‑play rivals. 2026 Big Tech Quantum Bets: IBM and Amazon’s Edge Over Pure-Plays?
• Neutral Sentiment: Market commentary notes IBM fell more than the broader market on the latest trading session — useful for context but not necessarily driven by company fundamentals. IBM (IBM) Falls More Steeply Than Broader Market: What Investors Need to Know
• Negative Sentiment: The death of former CEO and turnaround architect Lou Gerstner has generated widespread coverage; while largely symbolic, it can create short‑term emotion‑driven selling or media focus away from corporate catalysts. Louis V. Gerstner, Who Revived a Faltering IBM in the ’90s, Dies at 83

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.