International Business Machines (NYSE:IBM) Announces Earnings Results

International Business Machines (NYSE:IBM) posted its earnings results on Wednesday. The technology company reported $2.95 EPS for the quarter, topping analysts’ consensus estimates of $2.85 by $0.10, FiscalAI reports. The company had revenue of $17.10 billion for the quarter, compared to the consensus estimate of $16.82 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.

International Business Machines Trading Up 3.6%

NYSE IBM traded up $8.75 during trading hours on Wednesday, hitting $250.67. 9,021,780 shares of the company’s stock were exchanged, compared to its average volume of 7,454,617. The firm has a market capitalization of $236.16 billion, a P/E ratio of 22.24, a price-to-earnings-growth ratio of 2.27 and a beta of 0.73. International Business Machines has a 12-month low of $199.19 and a 12-month high of $332.46. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The business’s 50 day moving average is $232.07 and its 200-day moving average is $243.58.

International Business Machines News Summary

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

• Positive Sentiment: Wall Street expects IBM to report third-quarter earnings of approximately $2.86–$2.87 per share and revenue near $16.82–$16.84 billion. Analysts are looking for roughly 8% year-over-year EPS growth, creating the possibility of a positive reaction if IBM beats estimates or offers stronger guidance. IBM Q3 Earnings Preview
• Positive Sentiment: Investors are watching for evidence that previously delayed deals have closed and that software growth accelerated in the second half of the year. A stronger bookings outlook or improving cloud and AI demand could help IBM rebuild confidence after its summer selloff. IBM and SAP Earnings Preview
• Positive Sentiment: IBM continues to expand its enterprise AI positioning. IBM Ventures invested in Leena AI, while IBM and partners introduced the open-source llm-d 1.0 platform for scalable, cost-efficient AI inference. These initiatives support the company’s strategy of monetizing hybrid cloud, automation and production AI workloads. IBM Ventures Invests in Leena AI
• Neutral Sentiment: Options traders are pricing in a potentially large post-earnings move of about 7.16%, indicating elevated expectations and near-term volatility rather than a clear directional outlook. IBM Options Market Preview
• Negative Sentiment: IBM remains under pressure after falling about 17%–19% year to date, and recent revenue concerns have damaged its market narrative. A revenue miss, weak software growth or cautious guidance could quickly reverse the pre-earnings optimism. IBM Has a Chance to Rewrite Its Narrative

Wall Street Analyst Weigh In

A number of brokerages recently commented on IBM. BMO Capital Markets lowered their price objective on shares of International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a research note on Thursday, July 23rd. Susquehanna reaffirmed a “neutral” rating on shares of International Business Machines in a report on Wednesday. Wolfe Research downgraded shares of International Business Machines to a “peer perform” rating in a report on Tuesday, June 23rd. Oppenheimer cut shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 15th. Finally, JPMorgan Chase & Co. cut their price objective on International Business Machines from $291.00 to $250.00 and set an “overweight” rating for the company in a research report on Friday, July 17th. Twenty investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $255.76.

Insiders Place Their Bets

In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of International Business Machines stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total value of $5,758,000.00. Following the transaction, the senior vice president owned 47,800 shares in the company, valued at $11,009,296. This trade represents a 34.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.27% of the stock is currently owned by corporate insiders.

International Business Machines Company Profile

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.