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

International Business Machines (NYSE:IBM) updated its second quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 2.930-2.930 for the period, compared to the consensus EPS 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 25.4%

Shares of IBM opened at $216.59 on Wednesday. The firm has a market capitalization of $203.57 billion, a P/E ratio of 19.15, a price-to-earnings-growth ratio of 2.80 and a beta of 0.68. International Business Machines has a twelve month low of $212.34 and a twelve month high of $332.46. The company has a current ratio of 0.80, a quick ratio of 0.76 and a debt-to-equity ratio of 1.75. The stock’s fifty day simple moving average is $264.70 and its 200 day simple moving average is $265.20.

International Business Machines (NYSE:IBM) last announced its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share 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 firm had revenue of $15.92 billion for the quarter, compared to analysts’ expectations of $15.60 billion. During the same period in the previous year, the company posted $1.60 earnings per share. International Business Machines’s revenue was up 9.5% compared to the same quarter last year. On average, equities research analysts forecast that International Business Machines will post 12.45 earnings per share for the current year.

International Business Machines Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were issued a $1.69 dividend. The ex-dividend date was Friday, May 8th. This represents a $6.76 annualized dividend and a yield of 3.1%. This is an increase from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s payout ratio is currently 59.77%.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on IBM. Morgan Stanley upped their price target on International Business Machines from $267.00 to $293.00 and gave the stock an “equal weight” rating in a report on Tuesday. Bank of America raised their price target on shares of International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a report on Monday, July 6th. KeyCorp lowered shares of International Business Machines to a “sector weight” rating in a report on Tuesday, June 23rd. JPMorgan Chase & Co. raised shares of International Business Machines from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $270.00 to $291.00 in a research report on Tuesday, June 23rd. Finally, DZ Bank upgraded International Business Machines from a “hold” rating to a “buy” rating and set a $295.00 target price for the company in a research note on Friday, April 24th. Fourteen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $307.17.

Key International Business Machines News

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

• Negative Sentiment: IBM reported preliminary Q2 results below expectations, including revenue of $17.2 billion and adjusted EPS of $2.93 versus higher analyst forecasts, sparking a sharp selloff. Reuters: IBM expects second-quarter revenue below estimates
• Negative Sentiment: CEO Arvind Krishna said IBM “faltered” and acknowledged that several large deals closed later than expected as customers paused spending and redirected budgets toward AI-related infrastructure, raising concerns about near-term growth. CNBC: IBM warns second-quarter earnings fell short of expectations
• Negative Sentiment: Investors are worried IBM’s software and mainframe businesses may be losing budget share to AI infrastructure spending, which has also pressured other software and IT services stocks in sympathy. WSJ: IBM Shares Sink 18% on Earnings Warning
• Negative Sentiment: Following the plunge, law firms announced investigations into possible securities-fraud claims, adding an overhang for sentiment even though these probes do not change fundamentals immediately. PR Newswire: Shareholder Alert
• Neutral Sentiment: IBM also announced new Power Systems, software, and AI operations tools aimed at improving productivity and flexibility for enterprise customers, which could help offset some of the recent negativity over time. PR Newswire: IBM Launches New Power Systems and Software
• Positive Sentiment: Despite the selloff, IBM shares bounced in premarket trading as some investors viewed the move as overdone after the worst single-day drop in decades. Economic Times: IBM CEO statement led to $70 billion wipeout

Hedge Funds Weigh In On International Business Machines

Large investors have recently bought and sold shares of the business. SWAN Capital LLC bought a new position in shares of International Business Machines during the third quarter valued at approximately $28,000. Greenline Wealth Management LLC bought a new stake in shares of International Business Machines in the 4th quarter worth approximately $33,000. Quarry LP acquired a new position in International Business Machines during the 4th quarter valued at approximately $41,000. Acumen Wealth Advisors LLC bought a new position in shares of International Business Machines during the fourth quarter worth about $44,000. Finally, Jessup Wealth Management Inc acquired a new stake in shares of International Business Machines in the 4th quarter worth about $52,000. Institutional investors own 58.96% of the company’s stock.

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.