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

International Business Machines (NYSE:IBM) updated its second quarter 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 2.930-2.930 for the period, compared to the consensus earnings per share 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 Up 1.0%

NYSE:IBM opened at $290.46 on Tuesday. The company has a debt-to-equity ratio of 1.75, a current ratio of 0.80 and a quick ratio of 0.76. The business’s 50-day simple moving average is $264.95 and its 200-day simple moving average is $265.82. International Business Machines has a fifty-two week low of $212.34 and a fifty-two week high of $332.46. The stock has a market capitalization of $273.00 billion, a PE ratio of 25.68, a price-to-earnings-growth ratio of 2.78 and a beta of 0.68.

International Business Machines (NYSE:IBM) last posted its earnings results on Wednesday, April 22nd. The technology company reported $1.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.81 by $0.10. International Business Machines had a return on equity of 37.23% and a net margin of 15.61%.The business had revenue of $15.92 billion during the quarter, compared to analysts’ expectations of $15.60 billion. During the same period in the prior year, the business earned $1.60 EPS. International Business Machines’s revenue for the quarter was up 9.5% compared to the same quarter last year. Sell-side analysts expect that International Business Machines will post 12.45 earnings per share for the current fiscal year.

International Business Machines Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th were paid a $1.69 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $6.76 annualized dividend and a dividend yield of 2.3%. 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 59.77%.

Analyst Ratings Changes

Several research firms have recently weighed in on IBM. HSBC raised International Business Machines from a “reduce” rating to a “hold” rating and upped their price objective for the stock from $218.00 to $231.00 in a research report on Tuesday, April 28th. Citigroup lifted their price target on shares of International Business Machines from $285.00 to $375.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Stifel Nicolaus set a $290.00 price target on shares of International Business Machines in a research report on Friday, May 22nd. Morgan Stanley upgraded shares of International Business Machines from an “equal weight” rating to an “overweight” rating in a research note on Tuesday, June 23rd. Finally, Weiss Ratings downgraded International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, June 24th. Sixteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $306.28.

Key Stories Impacting International Business Machines

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

• Positive Sentiment: IBM released Arvind Krishna’s letter to investors alongside selected preliminary second-quarter 2026 financial results, giving the market an early look at performance ahead of the full earnings report. Arvind Krishna’s Letter to IBM Investors
• Positive Sentiment: Several articles highlighted IBM as attractively valued, with Jim Cramer calling the stock inexpensive and praising CEO Arvind Krishna’s execution, which may reinforce investor confidence. Jim Cramer Says Buy IBM Right Now
• Positive Sentiment: Coverage around IBM’s AI and quantum initiatives, including updates to its Bob AI platform and attention on quantum tech at a Capitol Hill showcase, suggests the market is watching for long-term growth catalysts. IBM Just Unveiled Major Updates to Its Bob AI Platform
• Positive Sentiment: IBM was also featured in commentary about dividend growth and total-return potential, which can appeal to income-focused investors during volatile markets. 3 Dividend Stocks with Growth on Tap for the Second Half
• Neutral Sentiment: Some articles were more mixed, with one comparison piece saying HubSpot has a stronger AI growth profile and a lower valuation than IBM, which could temper enthusiasm somewhat. HubSpot vs. IBM
• Negative Sentiment: One report noted IBM shares had been down recently, and another asked whether IBM can stay steady through an “AI reset,” suggesting some lingering skepticism about the pace of the company’s re-rating. International Business Machines Shares Down 2.5% – What’s Next?

Institutional Investors Weigh In On International Business Machines

Several hedge funds have recently added to or reduced their stakes in IBM. Brighton Jones LLC raised its position in shares of International Business Machines by 12.4% in the fourth quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock valued at $4,619,000 after purchasing an additional 2,323 shares during the period. Sivia Capital Partners LLC boosted its holdings in shares of International Business Machines by 10.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock worth $571,000 after buying an additional 186 shares during the period. Binnacle Investments Inc grew its stake in International Business Machines by 12.0% in the 3rd quarter. Binnacle Investments Inc now owns 524 shares of the technology company’s stock valued at $148,000 after buying an additional 56 shares during the last quarter. Darwin Wealth Management LLC bought a new position in International Business Machines in the 2nd quarter valued at about $127,000. Finally, Sumitomo Mitsui Financial Group Inc. acquired a new stake in International Business Machines during the fourth quarter worth approximately $111,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

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.