International Business Machines (NYSE:IBM) Trading 3.9% Higher – What’s Next?

Shares of International Business Machines Corporation (NYSE:IBM) traded up 3.9% on Friday . The company traded as high as $243.63 and last traded at $243.1420. 4,877,011 shares were traded during mid-day trading, a decline of 37% from the average session volume of 7,710,638 shares. The stock had previously closed at $234.02.

Trending Headlines about International Business Machines

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

• Positive Sentiment: Lunar AI partnership with NASA: IBM and NASA released the open-source Lunar Foundation Model, trained on decades of lunar observation data. The model reportedly outperformed widely used mapping methods by up to 23% in identifying features such as ice deposits, craters and volcanic formations. The announcement strengthens IBM’s profile in scientific AI, although near-term revenue is likely limited. IBM and NASA Release Open-Source AI Model to Support Lunar Exploration
• Positive Sentiment: Swiss quantum-computing hub: IBM and Lockheed Martin are establishing a quantum innovation hub at ETH Zurich through Switzerland’s defense-offset program. The Swiss National Supercomputing Centre is expected to host the country’s first IBM Quantum System Two, powered by IBM’s Nighthawk r2 processor and integrated with the Alps supercomputer. The arrangement could provide IBM with a government-supported, multi-year deployment while expanding access to researchers and businesses. Research will focus on quantum sensing, navigation and advanced materials. IBM and Lockheed Martin Announce Swiss Quantum Innovation Hub
• Neutral Sentiment: Analyst coverage continues to frame IBM as a diversified way to gain exposure to enterprise AI, hybrid cloud and quantum computing. However, the announcements are primarily strategic and research-oriented, so their effect on revenue and earnings may take years to materialize.
• Negative Sentiment: IBM recently underperformed the broader market, while a shareholder-rights law firm announced an investigation tied to management’s prior preview of weak second-quarter 2026 results. The investigation is not an allegation of wrongdoing, but it adds headline and legal risk. IBM Shareholder Investigation

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. The Goldman Sachs Group set a $270.00 price target on International Business Machines in a report on Thursday, July 23rd. Morgan Stanley reduced their price objective on International Business Machines from $293.00 to $190.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 23rd. Needham & Company LLC initiated coverage on International Business Machines in a research report on Wednesday, June 3rd. They issued a “buy” rating on the stock. Susquehanna boosted their target price on International Business Machines from $225.00 to $235.00 and gave the stock a “neutral” rating in a research note on Monday, August 31st. Finally, Royal Bank Of Canada reissued an “outperform” rating and issued a $270.00 target price on shares of International Business Machines in a report on Tuesday, July 21st. Seventeen research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $265.90.

International Business Machines Stock Up 3.9%

The company has a market capitalization of $229.07 billion, a P/E ratio of 21.57, a PEG ratio of 2.32 and a beta of 0.71. 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 stock has a 50 day moving average price of $236.88 and a 200 day moving average price of $246.36.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting analysts’ consensus estimates of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The business had revenue of $17.16 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same quarter in the previous year, the company posted $2.80 EPS. International Business Machines’s quarterly revenue was up 1.1% compared to the same quarter last year. On average, research analysts anticipate that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were paid a $1.69 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $6.76 annualized dividend and a dividend yield of 2.8%. International Business Machines’s dividend payout ratio is currently 59.98%.

Insider Transactions at International Business Machines

In related news, SVP Robert Thomas sold 25,000 shares of the firm’s stock in a transaction that occurred 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 completion of 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 filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.27% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On International Business Machines

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Assetmark Inc. boosted its holdings in shares of International Business Machines by 24.8% in the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock worth $15,624,000 after acquiring an additional 12,791 shares during the period. GLOBALT Investments LLC GA raised its stake in shares of International Business Machines by 19.1% during the 4th quarter. GLOBALT Investments LLC GA now owns 18,288 shares of the technology company’s stock valued at $5,417,000 after purchasing an additional 2,930 shares during the period. Rice Partnership LLC purchased a new stake in International Business Machines during the 4th quarter worth about $3,317,000. Sage Investment Advisers LLC bought a new position in International Business Machines in the 4th quarter worth about $4,101,000. Finally, Flputnam Investment Management Co. bought a new position in International Business Machines in the 2nd quarter worth about $15,237,000. 58.96% of the stock is currently owned by institutional investors and hedge funds.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise-focused hardware, software and services. Its offerings include hybrid cloud solutions, artificial intelligence, data and automation software, cybersecurity tools, IT infrastructure and technology consulting.

IBM develops and supports enterprise systems such as IBM Z mainframes, Power servers and storage products. Its software portfolio includes Red Hat hybrid cloud technologies, the watsonx platform for artificial intelligence and data management, application integration tools and cybersecurity solutions.