What is Erste Group Bank’s Estimate for IBM FY2027 Earnings?

International Business Machines Corporation (NYSE:IBM) – Investment analysts at Erste Group Bank decreased their FY2027 EPS estimates for shares of International Business Machines in a report issued on Wednesday, July 15th. Erste Group Bank analyst H. Engel now anticipates that the technology company will earn $13.38 per share for the year, down from their previous forecast of $13.41. The consensus estimate for International Business Machines’ current full-year earnings is $12.33 per share.

International Business Machines (NYSE:IBM) last released its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $15.92 billion for the quarter, compared to analysts’ expectations of $15.60 billion. During the same period last year, the company earned $1.60 earnings per share. The company’s quarterly revenue was up 9.5% on a year-over-year basis.

A number of other brokerages have also weighed in on IBM. Needham & Company LLC initiated coverage on shares of International Business Machines in a report on Wednesday, June 3rd. They issued a “buy” rating on the stock. Wedbush set a $350.00 target price on International Business Machines in a research report on Tuesday, June 2nd. Barclays assumed coverage on International Business Machines in a research report on Monday, June 1st. They issued an “overweight” rating and a $350.00 target price on the stock. Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a research report on Thursday. Finally, Argus lowered their price target on International Business Machines from $360.00 to $280.00 and set a “buy” rating for the company in a research report on Thursday. Fifteen analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $292.89.

International Business Machines Stock Performance

Shares of IBM stock opened at $212.54 on Friday. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.76 and a current ratio of 0.80. The firm has a market capitalization of $199.76 billion, a price-to-earnings ratio of 18.79, a price-to-earnings-growth ratio of 2.13 and a beta of 0.68. International Business Machines has a one year low of $204.44 and a one year high of $332.46. The company has a 50 day moving average price of $263.84 and a 200 day moving average price of $263.58.

Institutional Trading of International Business Machines

A number of institutional investors have recently added to or reduced their stakes in the business. VIRGINIA RETIREMENT SYSTEMS ET Al raised its holdings in International Business Machines by 424.6% during the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock worth $77,234,000 after buying an additional 211,040 shares during the period. GLOBALT Investments LLC GA boosted its holdings in shares of International Business Machines by 19.1% in the fourth quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock worth $5,417,000 after buying an additional 2,930 shares during the period. Newbridge Financial Services Group Inc. increased its position in shares of International Business Machines by 30.0% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 13,122 shares of the technology company’s stock worth $3,887,000 after acquiring an additional 3,029 shares in the last quarter. Rice Partnership LLC acquired a new stake in shares of International Business Machines during the fourth quarter valued at approximately $3,317,000. Finally, Sage Investment Advisers LLC acquired a new stake in shares of International Business Machines during the fourth quarter valued at approximately $4,101,000. 58.96% of the stock is owned by hedge funds and other institutional investors.

International Business Machines Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 8th were issued a dividend of $1.69 per share. This represents a $6.76 annualized dividend and a dividend yield of 3.2%. The ex-dividend date was Friday, May 8th. This is a positive change from International Business Machines’s previous quarterly dividend of $1.68. International Business Machines’s dividend payout ratio (DPR) is presently 59.77%.

International Business Machines News Summary

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

• Positive Sentiment: IBM launched new Power server products aimed at automation, app modernization, and local AI inferencing, which could support its enterprise AI push over time.
• Positive Sentiment: JPMorgan kept an overweight rating on IBM even after cutting its price target to $250, indicating Wall Street still sees upside from current levels.
• Positive Sentiment: Some analysts say the stock’s sharp decline may have pushed it into oversold territory, which could attract bargain hunters if sentiment stabilizes.
• Neutral Sentiment: IBM heads into its July 22 earnings report with investors focused on whether the company can validate its AI and cloud momentum after the warning.
• Neutral Sentiment: Analysts at Zacks and others are debating whether the selloff is an opportunity or a sign to wait, reflecting uncertainty rather than a clear fundamental shift.
• Negative Sentiment: IBM’s preliminary Q2 miss and weak near-term outlook are the main reasons the stock is falling, as they suggest slower growth and margin pressure.
• Negative Sentiment: Multiple law firms have announced securities-fraud investigations after the plunge, which can keep negative headlines around the stock.
• Negative Sentiment: Analyst sentiment is turning more cautious, with some estimate reductions and technical warnings reinforcing bearish momentum.

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.