International Business Machines (NYSE:IBM) Shares Up 4.9% on Earnings Beat

International Business Machines Corporation (NYSE:IBM) shares traded up 4.9% during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $319.90 and last traded at $308.6730. 10,094,745 shares were traded during trading, an increase of 120% from the average session volume of 4,586,893 shares. The stock had previously closed at $294.16.

The technology company reported $4.52 EPS for the quarter, topping analysts’ consensus estimates of $4.33 by $0.19. International Business Machines had a return on equity of 39.96% and a net margin of 15.69%.The company had revenue of $19.69 billion for the quarter, compared to analysts’ expectations of $19.23 billion. During the same period in the prior year, the firm earned $3.92 earnings per share. The firm’s revenue was up 12.2% compared to the same quarter last year.

International Business Machines Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th will be issued 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 is Tuesday, February 10th. International Business Machines’s dividend payout ratio (DPR) is 80.38%.

International Business Machines News Roundup

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

• Positive Sentiment: Q4 beat and upbeat 2026 outlook: IBM reported stronger-than-expected Q4 results (EPS $4.52; revenue $19.69B) and raised its revenue outlook for 2026 (management expects >5% revenue growth and higher free cash flow). Those results and guidance are being cited as the core reason investors are buying the stock. IBM beats fourth-quarter estimates, forecasts 5% revenue growth in 2026
• Positive Sentiment: AI and software momentum: Management said AI-related revenue topped ~$12.5B and software and infrastructure businesses showed double‑digit growth — driving margins, free cash flow, and investor confidence in IBM’s AI strategy. IBM Q4 Earnings Surpass Estimates on Strong Cloud and AI Momentum
• Positive Sentiment: Analyst upgrades and higher price targets: Several firms reacted positively — Evercore raised its target to $345 (outperform), Bank of America reiterated a buy with $340, and RBC highlighted IBM as a defensive AI play — adding buying pressure. Analyst price-target coverage
• Positive Sentiment: Strategic M&A — Confluent acquisition: IBM announced an ~$11B deal for Confluent to bolster real‑time data streaming and AI deployment, which investors view as accelerating IBM’s AI platform capabilities. Cloud Stocks: Analysis Of IBM’s Confluent Acquisition
• Neutral Sentiment: Dividend maintained: IBM declared a quarterly dividend of $1.68 per share (ex-dividend Feb 10), supporting income investors but not a growth catalyst. Dividend announcement / press release
• Neutral Sentiment: Small mixed analyst moves: JPMorgan nudged its target to $317 but kept a neutral rating — a modest endorsement that contrasts with higher targets from others and tempers upside expectations. JPMorgan price target update
• Negative Sentiment: Risks and skeptics: Some commentary (e.g., Seeking Alpha) points to execution risks, Red Hat headwinds previously noted by analysts, and concerns about integration/price of the Confluent deal — factors that could pressure the stock if results or synergies miss expectations. IBM: Limping Into 2026

Analyst Ratings Changes

Several research analysts have recently commented on IBM shares. BMO Capital Markets reissued a “market perform” rating and issued a $350.00 price objective on shares of International Business Machines in a research note on Thursday. Stifel Nicolaus raised their price target on shares of International Business Machines from $325.00 to $340.00 and gave the company a “buy” rating in a research report on Thursday. Erste Group Bank upgraded shares of International Business Machines from a “hold” rating to a “buy” rating in a research note on Friday, December 5th. Wall Street Zen cut International Business Machines from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. Finally, Wedbush boosted their target price on International Business Machines from $325.00 to $340.00 and gave the stock an “outperform” rating in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, International Business Machines has a consensus rating of “Moderate Buy” and a consensus price target of $327.93.

Institutional Investors Weigh In On International Business Machines

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Family CFO Inc acquired a new stake in International Business Machines during the second quarter worth approximately $25,000. Winnow Wealth LLC purchased a new position in shares of International Business Machines in the 2nd quarter valued at $27,000. Mountain Hill Investment Partners Corp. acquired a new stake in International Business Machines during the 3rd quarter worth $28,000. SWAN Capital LLC purchased a new stake in International Business Machines in the third quarter valued at $28,000. Finally, DecisionPoint Financial LLC boosted its stake in International Business Machines by 1,666.7% in the fourth quarter. DecisionPoint Financial LLC now owns 106 shares of the technology company’s stock valued at $31,000 after acquiring an additional 100 shares in the last quarter. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Stock Performance

The firm has a fifty day simple moving average of $302.67 and a 200-day simple moving average of $282.98. 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 company has a market cap of $288.53 billion, a PE ratio of 27.68, a price-to-earnings-growth ratio of 2.85 and a beta of 0.70.

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.