Zacks Research Has Strong Estimate for IBM FY2025 Earnings

International Business Machines Co. (NYSE:IBM - Free Report) - Investment analysts at Zacks Research increased their FY2025 earnings per share (EPS) estimates for shares of International Business Machines in a report issued on Tuesday, February 18th. Zacks Research analyst S. Bose now expects that the technology company will post earnings per share of $10.40 for the year, up from their previous forecast of $10.37. The consensus estimate for International Business Machines' current full-year earnings is $10.77 per share. Zacks Research also issued estimates for International Business Machines' Q4 2025 earnings at $4.11 EPS, Q4 2026 earnings at $3.97 EPS and FY2026 earnings at $11.27 EPS.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings data on Wednesday, January 29th. The technology company reported $3.92 earnings per share for the quarter, topping the consensus estimate of $3.77 by $0.15. International Business Machines had a return on equity of 38.99% and a net margin of 9.60%.

IBM has been the topic of a number of other research reports. BMO Capital Markets raised their price target on International Business Machines from $260.00 to $280.00 and gave the stock a "market perform" rating in a research report on Thursday, January 30th. Bank of America raised their price target on International Business Machines from $260.00 to $270.00 and gave the stock a "buy" rating in a research report on Thursday, January 30th. Morgan Stanley raised their price target on International Business Machines from $217.00 to $228.00 and gave the stock an "equal weight" rating in a research report on Thursday, January 30th. UBS Group raised their price target on International Business Machines from $150.00 to $160.00 and gave the stock a "sell" rating in a research report on Tuesday, January 14th. Finally, Royal Bank of Canada restated an "outperform" rating and issued a $250.00 price target on shares of International Business Machines in a research report on Monday, January 27th. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and eight have issued a buy rating to the company. According to MarketBeat.com, International Business Machines has a consensus rating of "Hold" and a consensus target price of $231.44.

International Business Machines Stock Performance

IBM stock traded down $2.97 during trading hours on Friday, hitting $261.77. 5,665,344 shares of the stock were exchanged, compared to its average volume of 4,735,325. The company has a current ratio of 1.04, a quick ratio of 1.00 and a debt-to-equity ratio of 1.82. International Business Machines has a 12 month low of $162.62 and a 12 month high of $265.72. The firm has a market capitalization of $242.05 billion, a P/E ratio of 40.84, a P/E/G ratio of 5.80 and a beta of 0.76. The company has a 50-day simple moving average of $235.27 and a two-hundred day simple moving average of $221.81.

Institutional Trading of International Business Machines

A number of hedge funds have recently made changes to their positions in IBM. Compass Financial Services Inc acquired a new position in shares of International Business Machines in the fourth quarter worth approximately $26,000. Hazlett Burt & Watson Inc. lifted its stake in shares of International Business Machines by 1,054.5% in the third quarter. Hazlett Burt & Watson Inc. now owns 127 shares of the technology company's stock worth $29,000 after acquiring an additional 116 shares during the period. Hara Capital LLC acquired a new position in shares of International Business Machines in the third quarter worth approximately $29,000. Vision Financial Markets LLC acquired a new position in shares of International Business Machines in the fourth quarter worth approximately $31,000. Finally, Avondale Wealth Management lifted its stake in shares of International Business Machines by 56.0% in the fourth quarter. Avondale Wealth Management now owns 156 shares of the technology company's stock worth $34,000 after acquiring an additional 56 shares during the period. 58.96% of the stock is owned by institutional investors and hedge funds.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 10th. Stockholders of record on Monday, February 10th will be paid a dividend of $1.67 per share. This represents a $6.68 dividend on an annualized basis and a dividend yield of 2.55%. The ex-dividend date of this dividend is Monday, February 10th. International Business Machines's payout ratio is 104.21%.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.