What is Erste Group Bank’s Forecast for IBM FY2026 Earnings?

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

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

Several other research analysts have also issued reports on IBM. JPMorgan Chase & Co. decreased their price target on shares of International Business Machines from $291.00 to $250.00 and set an “overweight” rating for the company in a research note on Friday, July 17th. Stifel Nicolaus dropped their price objective on shares of International Business Machines from $290.00 to $235.00 and set a “buy” rating on the stock in a research note on Monday, July 20th. Sanford C. Bernstein restated a “market perform” rating on shares of International Business Machines in a report on Thursday, July 16th. Oppenheimer downgraded shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 15th. Finally, Barclays lowered their target price on shares of International Business Machines from $288.00 to $262.00 and set an “overweight” rating for the company in a report on Thursday, July 23rd. Fifteen analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, International Business Machines has a consensus rating of “Moderate Buy” and a consensus target price of $265.40.

International Business Machines Stock Performance

Shares of International Business Machines stock opened at $238.62 on Monday. International Business Machines has a 12 month low of $199.19 and a 12 month high of $332.46. The firm has a market capitalization of $224.81 billion, a P/E ratio of 21.17, a P/E/G ratio of 2.32 and a beta of 0.70. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. The business has a fifty day simple moving average of $255.09 and a two-hundred day simple moving average of $254.13.

International Business Machines Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $1.69 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.8%. International Business Machines’s dividend payout ratio (DPR) is presently 59.98%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in International Business Machines in the second quarter worth approximately $21,586,659,000. Bank of New York Mellon Corp purchased a new stake in International Business Machines during the 2nd quarter valued at $2,606,782,000. Norges Bank purchased a new stake in International Business Machines during the 4th quarter valued at $2,446,429,000. Capital World Investors lifted its holdings in shares of International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock valued at $6,523,720,000 after buying an additional 4,976,756 shares during the period. Finally, Deutsche Bank AG bought a new position in shares of International Business Machines during the 2nd quarter valued at $960,839,000. 58.96% of the stock is owned by institutional investors.

More International Business Machines News

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

• Positive Sentiment: AI infrastructure deal provides the clearest near-term catalyst. IBM signed a multi-year agreement valued at approximately $240 million with Together AI to build a large-scale open-source AI inference cluster on IBM Cloud. The system will use NVIDIA HGX B300 platforms and Spectrum-X networking, with availability expected in the first quarter of 2027. The contract supports IBM’s effort to turn AI demand into cloud revenue and strengthens its position in the growing inference market. Reuters article
• Positive Sentiment: IBM is broadening its partner-led sales reach. TD SYNNEX plans to expand IBM distribution into 20 additional countries across Europe, Asia-Pacific, and Latin America. The move could improve access to IBM’s cloud, software, and infrastructure offerings, although the direct financial impact is not yet quantified. TD SYNNEX expands IBM distribution article
• Neutral Sentiment: IBM raised CAD 997.11 million through fixed-rate notes. The 4.750% notes mature in 2034, giving investors updated information about IBM’s funding costs and capital structure. The proceeds provide liquidity, but the additional debt and interest expense are a consideration given the company’s existing leverage. IBM funding and stock attention article
• Neutral Sentiment: Quantum computing remains a longer-term growth narrative. Commentary citing IBM’s CEO suggests the technology could begin making a measurable contribution to results in coming years, but it is not an immediate earnings driver. IBM quantum computing outlook article
• Negative Sentiment: Risk concerns remain. A law firm announced an investigation into a sharp prior decline in IBM shares, while separate commentary raised concerns about whether massive industrywide AI infrastructure spending can generate adequate returns. These developments may limit enthusiasm despite the new AI contract. IBM securities investigation article

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.