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Jones Financial Companies Lllp bought a new stake in shares of International Business Machines Corporation (NYSE:IBM – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 15,898 shares of the technology company’s stock, valued at approximately $4,471,000.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Basepoint Wealth LLC bought a new stake in shares of International Business Machines in the 4th quarter worth approximately $25,000. Portus Wealth Advisors LLC bought a new stake in International Business Machines during the first quarter worth approximately $26,000. Harborfront Financial Group LLC acquired a new position in International Business Machines in the second quarter worth approximately $27,000. Cornerstone Financial Management LLC bought a new position in shares of International Business Machines in the fourth quarter valued at $28,000. Finally, Hara Capital LLC bought a new stake in shares of International Business Machines during the 2nd quarter worth $28,000. Institutional investors own 58.96% of the company’s stock.

Insider Transactions at International Business Machines In other International Business Machines news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction 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 sale, the senior vice president directly owned 47,800 shares of the company’s stock, valued at $11,009,296. This represents a 34.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 0.27% of the company’s stock.

Analysts Set New Price Targets A number of equities analysts recently weighed in on the company. Royal Bank Of Canada reiterated an “outperform” rating and issued a $270.00 price target on shares of International Business Machines in a research report on Tuesday, July 21st. Craig Hallum started coverage on shares of International Business Machines in a report on Wednesday, August 19th. They issued a “buy” rating for the company. The Goldman Sachs Group set a $270.00 price target on shares of International Business Machines in a report on Thursday, July 23rd. Morgan Stanley decreased their price objective on shares of International Business Machines from $293.00 to $190.00 and set an “equal weight” rating for the company in a research note on Thursday, July 23rd. Finally, Bank of America boosted their target price on shares of International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a research note on Monday, July 6th. Sixteen research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $265.90. View Our Latest Research Report on IBM

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

Positive Sentiment: IBM, Cleveland Clinic and Japan’s RIKEN advanced to the finals for the 2026 ACM Gordon Bell Prize after using quantum and classical computing to model a 12,635-atom protein. The achievement highlights IBM’s potential in quantum-centric supercomputing and life-sciences research. Cleveland Clinic, RIKEN and IBM Team Advance to Finals for 2026 ACM Gordon Bell Prize Positive Sentiment: An Evercore ISI analyst argued that IBM’s quantum-computing initiatives are effectively being valued at little or nothing in the current stock price, suggesting potential upside if the technology advances commercially. Is IBM’s selloff an opportunity? Here’s one case for the beaten-down stock. Neutral Sentiment: IBM shares were reported slightly higher ahead of the latest session, but the update offered no new fundamental catalyst. A separate comparison of IBM and Applied Digital focused on financial metrics rather than a specific IBM business development. IBM stock heads into the open after a 0.08 percent gain Negative Sentiment: The main pressure remains concern over a slowdown in IBM Z product activity. The resulting selloff prompted a securities-law investigation announcement, reinforcing investor worries about demand and execution in IBM’s core infrastructure business. IBM Shares Fall Following IBM Z Product Slowdown Negative Sentiment: Evercore warned that capital moving into anticipated AI initial public offerings could lead investors to sell existing holdings, placing IBM among stocks vulnerable to portfolio rotation. Evercore Warns AI IPOs Could Pressure IBM International Business Machines Trading Down 1.2% Shares of NYSE:IBM opened at $232.02 on Wednesday. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The stock’s 50-day moving average is $239.81 and its 200-day moving average is $246.65. The company has a market cap of $218.59 billion, a P/E ratio of 20.59, a P/E/G ratio of 2.24 and a beta of 0.71. International Business Machines Corporation has a 52-week low of $199.19 and a 52-week high of $332.46.

International Business Machines (NYSE:IBM – Get Free Report) last announced its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting the consensus estimate of $2.93. The firm had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The firm’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.80 EPS. Equities research analysts predict that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a dividend of $1.69 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines’s payout ratio is 59.98%.

International Business Machines Company Profile (Free Report)

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.

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Danske Bank A S acquired a new stake in International Business Machines Corporation (NYSE:IBM – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund acquired 532,875 shares of the technology company’s stock, valued at approximately $149,850,000. Danske Bank A S owned 0.06% of International Business Machines as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. Basepoint Wealth LLC acquired a new stake in shares of International Business Machines in the fourth quarter valued at approximately $25,000. Portus Wealth Advisors LLC bought a new position in International Business Machines during the 1st quarter worth $26,000. Harborfront Financial Group LLC bought a new position in International Business Machines during the 2nd quarter worth $27,000. Cornerstone Financial Management LLC acquired a new position in International Business Machines in the 4th quarter valued at $28,000. Finally, SWAN Capital LLC acquired a new position in International Business Machines in the 3rd quarter valued at $28,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Trading Up 1.0% NYSE IBM opened at $234.00 on Friday. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. International Business Machines Corporation has a twelve month low of $199.19 and a twelve month high of $332.46. The company has a market cap of $220.46 billion, a price-to-earnings ratio of 20.76, a price-to-earnings-growth ratio of 2.21 and a beta of 0.71. The business’s fifty day moving average is $242.40 and its 200 day moving average is $247.21.

International Business Machines (NYSE:IBM – Get Free Report) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, meeting the consensus estimate of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The firm had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same period last year, the company earned $2.80 earnings per share. The business’s quarterly revenue was up 1.1% on a year-over-year basis. As a group, sell-side analysts expect that International Business Machines Corporation will post 12.33 EPS for the current fiscal year. International Business Machines Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be given a $1.69 dividend. The ex-dividend date is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. International Business Machines’s payout ratio is 59.98%.

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

Positive Sentiment: Quantum-computing advances support IBM’s growth narrative. IBM reportedly achieved a 25-fold throughput improvement, reinforcing its position in quantum hardware and software and adding to investor enthusiasm around emerging technology opportunities. Quantum Computing News: IBM Hits 25x Throughput Gain, RGTI Shows Up to 100x Speedup Positive Sentiment: Valuation and shareholder returns are attracting buyers. One analysis says IBM may trade below estimates of intrinsic value based on discounted cash flow, earnings and cash-flow multiples. Its long-term return, sizable dividend and reported $1.69-per-share distribution strengthen the income and value case. IBM Stock Could Be Below Fair Value Despite Cautious Broader Checks Positive Sentiment: AI and strategic investments broaden IBM’s growth prospects. IBM remains a favored long-term AI stock among retail investors, while IBM Ventures’ investment in physics-acceleration company BQP provides additional exposure to advanced computing. IBM Ventures Backs Physics Acceleration Firm BQP Neutral Sentiment: IBM’s latest trading-session advance reflected broader market strength, but the company’s shares remain below both their 50-day and 200-day moving averages, indicating that technical momentum is still mixed. IBM Beats Stock Market Upswing Negative Sentiment: A law-firm investigation adds headline and litigation risk. Bleichmar Fonti & Auld announced an investigation into potential misrepresentations concerning IBM’s business deal pace. The inquiry does not establish wrongdoing, but it could pressure the stock if additional claims or weak bookings emerge. IBM Under Investigation for Securities Fraud Insider Activity at International Business Machines In other news, SVP Robert Thomas sold 25,000 shares of the company’s stock in a transaction 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 sale, the senior vice president directly owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. This represents a 34.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 0.27% of the company’s stock.

Wall Street Analysts Forecast Growth Several analysts have recently issued reports on IBM shares. Robert W. Baird began coverage on International Business Machines in a report on Tuesday, July 21st. They set a “neutral” rating and a $230.00 target price on the stock. Susquehanna boosted their price target on International Business Machines from $225.00 to $235.00 and gave the company a “neutral” rating in a research note on Monday. Oppenheimer downgraded shares of International Business Machines from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 15th. Piper Sandler raised shares of International Business Machines to an “overweight” rating in a report on Tuesday, June 23rd. Finally, Wolfe Research cut shares of International Business Machines to a “peer perform” rating in a research report on Tuesday, June 23rd. Sixteen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $265.90.

View Our Latest Stock Analysis on IBM

(Free Report)

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.

Read More Five stocks we like better than International Business Machines The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story NVIDIA’s Hugging Face Deal Raises a Bigger Question About Its AI Moat Now Dropping the Dough: Yum! Brands Strategically Trims the Fat These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern

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Foster & Motley Inc. purchased a new stake in shares of International Business Machines Corporation (NYSE:IBM – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 31,412 shares of the technology company’s stock, valued at approximately $8,833,000.

A number of other large investors also recently modified their holdings of the company. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its holdings in shares of International Business Machines by 424.6% in the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 260,740 shares of the technology company’s stock valued at $77,234,000 after buying an additional 211,040 shares during the period. Assetmark Inc. raised its holdings in shares of International Business Machines by 24.8% during the first quarter. Assetmark Inc. now owns 64,458 shares of the technology company’s stock valued at $15,624,000 after buying an additional 12,791 shares during the last quarter. GLOBALT Investments LLC GA grew its holdings in International Business Machines by 19.1% in the 4th 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 in the last quarter. Rice Partnership LLC acquired a new stake in International Business Machines in the 4th quarter valued at approximately $3,317,000. Finally, Sage Investment Advisers LLC bought a new stake in shares of International Business Machines during the fourth quarter valued at about $4,101,000. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets A number of research analysts recently commented on IBM shares. Citigroup lowered their price objective on shares of International Business Machines from $255.00 to $245.00 and set a “buy” rating on the stock in a research note on Friday, July 24th. BMO Capital Markets cut their price objective on International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a report on Thursday, July 23rd. Roth Capital restated a “buy” rating on shares of International Business Machines in a report on Wednesday, June 3rd. Wall Street Zen upgraded International Business Machines from a “sell” rating to a “hold” rating in a research note on Saturday, August 29th. Finally, Weiss Ratings downgraded shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, June 24th. Sixteen research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $265.90.

View Our Latest Research Report on IBM Key Headlines Impacting International Business Machines Here are the key news stories impacting International Business Machines this week:

Positive Sentiment: Quantum-computing advances support IBM’s growth narrative. IBM reportedly achieved a 25-fold throughput improvement, reinforcing its position in quantum hardware and software and adding to investor enthusiasm around emerging technology opportunities. Quantum Computing News: IBM Hits 25x Throughput Gain, RGTI Shows Up to 100x Speedup Positive Sentiment: Valuation and shareholder returns are attracting buyers. One analysis says IBM may trade below estimates of intrinsic value based on discounted cash flow, earnings and cash-flow multiples. Its long-term return, sizable dividend and reported $1.69-per-share distribution strengthen the income and value case. IBM Stock Could Be Below Fair Value Despite Cautious Broader Checks Positive Sentiment: AI and strategic investments broaden IBM’s growth prospects. IBM remains a favored long-term AI stock among retail investors, while IBM Ventures’ investment in physics-acceleration company BQP provides additional exposure to advanced computing. IBM Ventures Backs Physics Acceleration Firm BQP Neutral Sentiment: IBM’s latest trading-session advance reflected broader market strength, but the company’s shares remain below both their 50-day and 200-day moving averages, indicating that technical momentum is still mixed. IBM Beats Stock Market Upswing Negative Sentiment: A law-firm investigation adds headline and litigation risk. Bleichmar Fonti & Auld announced an investigation into potential misrepresentations concerning IBM’s business deal pace. The inquiry does not establish wrongdoing, but it could pressure the stock if additional claims or weak bookings emerge. IBM Under Investigation for Securities Fraud Insider Activity In other news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction 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 approximately $11,009,296. This represents a 34.34% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.27% of the company’s stock.

International Business Machines Trading Up 1.0% Shares of International Business Machines stock opened at $234.00 on Friday. International Business Machines Corporation has a 1 year low of $199.19 and a 1 year high of $332.46. The company’s fifty day simple moving average is $242.40 and its 200-day simple moving average is $247.21. The company has a market cap of $220.46 billion, a price-to-earnings ratio of 20.76, a PEG ratio of 2.21 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.

International Business Machines (NYSE:IBM – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same period in the prior year, the firm earned $2.80 EPS. The business’s revenue was up 1.1% on a year-over-year basis. As a group, sell-side analysts expect that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be paid a dividend of $1.69 per share. The ex-dividend date is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. International Business Machines’s payout ratio is currently 59.98%.

(Free Report)

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.

Read More Five stocks we like better than International Business Machines The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story NVIDIA’s Hugging Face Deal Raises a Bigger Question About Its AI Moat Now Dropping the Dough: Yum! Brands Strategically Trims the Fat These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern

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Citizens Financial Group Inc. RI purchased a new stake in International Business Machines Corporation (NYSE:IBM – Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 57,229 shares of the technology company’s stock, valued at approximately $16,093,000.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Brighton Jones LLC boosted its position in shares of International Business Machines by 12.4% during the 4th quarter. Brighton Jones LLC now owns 21,011 shares of the technology company’s stock worth $4,619,000 after acquiring an additional 2,323 shares in the last quarter. Sivia Capital Partners LLC grew its holdings in shares of International Business Machines by 10.6% during the second quarter. Sivia Capital Partners LLC now owns 1,938 shares of the technology company’s stock worth $571,000 after purchasing an additional 186 shares during the last quarter. Jump Financial LLC bought a new position in shares of International Business Machines during the second quarter valued at $211,000. Ieq Capital LLC raised its position in shares of International Business Machines by 2.2% during the second quarter. Ieq Capital LLC now owns 38,617 shares of the technology company’s stock worth $11,383,000 after acquiring an additional 843 shares during the last quarter. Finally, Vivaldi Capital Management LP lifted its position in shares of International Business Machines by 11.6% in the 2nd quarter. Vivaldi Capital Management LP now owns 1,017 shares of the technology company’s stock worth $300,000 after purchasing an additional 106 shares during the period. Institutional investors own 58.96% of the company’s stock.

Wall Street Analyst Weigh In Several equities analysts have issued reports on the company. KeyCorp lowered International Business Machines to a “sector weight” rating in a research note on Tuesday, June 23rd. Roth Capital reiterated a “buy” rating on shares of International Business Machines in a report on Wednesday, June 3rd. BMO Capital Markets dropped their target price on shares of International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a research report on Thursday, July 23rd. Needham & Company LLC began coverage on shares of International Business Machines in a report on Wednesday, June 3rd. They issued a “buy” rating on the stock. Finally, Sanford C. Bernstein reissued a “market perform” rating on shares of International Business Machines in a report on Thursday, July 16th. Sixteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, International Business Machines currently has an average rating of “Moderate Buy” and a consensus price target of $265.90.

Read Our Latest Analysis on IBM Insider Activity at International Business Machines In other news, SVP Robert David Thomas sold 25,000 shares of the stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares in the company, valued at approximately $11,009,296. This represents a 34.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.27% of the company’s stock.

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

Positive Sentiment: IBM Ventures expands quantum-computing exposure: IBM Ventures invested in BQP, a physics-acceleration company whose bookings have reportedly increased eightfold. The investment supports IBM’s positioning in quantum and advanced-computing infrastructure, although the deal is unlikely to materially affect near-term earnings. IBM Ventures backs BQP Positive Sentiment: AI and quantum themes continue to support the investment case: Analysts highlighted IBM among large technology companies that could benefit from quantum-computing adoption through cloud, software and infrastructure offerings. Retail-investor coverage also identified IBM as a favored long-term AI stock, particularly because of its enterprise focus and hybrid-cloud capabilities. Quantum boom investment ideas Neutral Sentiment: Dividend remains a key attraction: IBM is highlighted as a major technology dividend payer, with a quarterly distribution of $1.69 per share. The income profile may appeal to defensive investors, though dividend comparisons alone do not resolve concerns about valuation or growth. Cisco versus IBM dividend comparison Neutral Sentiment: IBM is promoting responsible AI adoption: A new study found that AI adoption in U.S. K-12 schools is outpacing institutional readiness, prompting IBM to launch a fellowship for education leaders. The initiative may strengthen IBM’s brand and future relationships but has limited immediate financial impact. IBM K-12 AI study Negative Sentiment: Securities-fraud investigation adds headline risk: Bleichmar Fonti & Auld said it is investigating whether IBM made potentially misleading statements about the pace of business deals. The announcement is an allegation, not a finding of wrongdoing, but it could increase legal uncertainty and investor caution. IBM securities investigation Negative Sentiment: Broader concerns remain over IBM’s growth outlook: Recent analysis cited AI-driven disruption to legacy services, pricing pressure and reduced estimates as reasons for IBM’s year-to-date weakness, despite support from hybrid cloud and watsonx. Technical coverage also identified resistance near $239, suggesting limited upside until momentum improves. IBM stock outlook International Business Machines Stock Performance Shares of IBM opened at $231.43 on Thursday. 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 $242.89 and a 200-day moving average price of $247.41. The company has a market cap of $218.04 billion, a PE ratio of 20.54, a price-to-earnings-growth ratio of 2.21 and a beta of 0.71. International Business Machines Corporation has a 12-month low of $199.19 and a 12-month high of $332.46.

International Business Machines (NYSE:IBM – Get Free Report) last announced its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.93. The business had revenue of $17.16 billion during the quarter, compared to analyst estimates of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. International Business Machines’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same period in the previous year, the business posted $2.80 earnings per share. As a group, equities analysts forecast that International Business Machines Corporation will post 12.33 earnings per share for the current fiscal year.

International Business Machines Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines’s dividend payout ratio is presently 59.98%.

(Free Report)

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.

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Global Retirement Partners LLC bought a new stake in shares of International Business Machines Corporation (NYSE:IBM – Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 31,616 shares of the technology company’s stock, valued at approximately $8,891,000.

Several other hedge funds and other institutional investors also recently made changes to their positions in IBM. Basepoint Wealth LLC bought a new stake in International Business Machines in the fourth quarter worth $25,000. Portus Wealth Advisors LLC bought a new position in shares of International Business Machines during the first quarter valued at $26,000. Cornerstone Financial Management LLC bought a new position in shares of International Business Machines during the fourth quarter valued at $28,000. SWAN Capital LLC purchased a new position in shares of International Business Machines in the 3rd quarter worth about $28,000. Finally, Bare Financial Services Inc raised its position in shares of International Business Machines by 114.6% in the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company’s stock worth $29,000 after purchasing an additional 55 shares during the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

Analyst Upgrades and Downgrades Several analysts recently commented on the stock. The Goldman Sachs Group set a $270.00 price objective on shares of International Business Machines in a research report on Thursday, July 23rd. Susquehanna upped their target price on shares of International Business Machines from $225.00 to $235.00 and gave the stock a “neutral” rating in a research note on Monday. Argus cut their price target on shares of International Business Machines from $360.00 to $280.00 and set a “buy” rating on the stock in a report on Thursday, July 16th. Stifel Nicolaus reduced their price target on shares of International Business Machines from $290.00 to $235.00 and set a “buy” rating for the company in a research report on Monday, July 20th. Finally, Citigroup decreased their price objective on shares of International Business Machines from $255.00 to $245.00 and set a “buy” rating for the company in a report on Friday, July 24th. Sixteen research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $265.90.

Check Out Our Latest Stock Analysis on International Business Machines International Business Machines Price Performance Shares of NYSE:IBM opened at $231.12 on Wednesday. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The firm has a market cap of $217.75 billion, a price-to-earnings ratio of 20.51, a price-to-earnings-growth ratio of 2.30 and a beta of 0.70. The business has a 50-day simple moving average of $243.51 and a two-hundred day simple moving average of $247.61. International Business Machines Corporation has a fifty-two week low of $199.19 and a fifty-two week high of $332.46.

International Business Machines (NYSE:IBM – Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter last year, the firm posted $2.80 EPS. The business’s quarterly revenue was up 1.1% compared to the same quarter last year. On average, analysts expect that International Business Machines Corporation will post 12.33 earnings per share for the current year.

International Business Machines Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be issued a $1.69 dividend. The ex-dividend date is Monday, August 10th. This represents a $6.76 annualized dividend and a yield of 2.9%. International Business Machines’s dividend payout ratio (DPR) is currently 59.98%.

Insider Transactions at International Business Machines In other International Business Machines news, SVP Robert David Thomas sold 25,000 shares of International Business Machines 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 sale, the senior vice president owned 47,800 shares of the company’s stock, valued at approximately $11,009,296. The trade was a 34.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.27% of the company’s stock.

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

Positive Sentiment: IBM’s acquisition of HRL Laboratories adds silicon-spin qubit, materials and manufacturing expertise that could improve its ability to develop scalable quantum-computing systems. Analysts cited upcoming quantum catalysts, and Susquehanna raised its price target to $235, although it maintained a cautious view. Can IBM’s HRL Acquisition Boost Its Quantum Computing Capabilities? Positive Sentiment: A technical analysis article said IBM remains in a longer-term uptrend and could resume advancing if shares clear resistance near $239. A breakout would signal improved buying momentum, though this is a technical rather than fundamental catalyst. Stock of the Day: Will IBM Break Out and Head Higher? Neutral Sentiment: New market reports identify IBM as a participant in expanding enterprise blockchain, UNIX, business service management, computer-based sensing, biological computing and high-throughput computing markets. These reports point to broad industry growth but provide limited evidence of immediate revenue or earnings impact for IBM. IBM Emerges as a Leading Enterprise Blockchain Provider Negative Sentiment: IBM’s reported year-to-date decline reflects concerns about AI-driven disruption to legacy services, pricing pressure and downward earnings estimates. Hybrid cloud and watsonx remain potential offsets, but investors are questioning whether growth in those businesses can compensate for weakness elsewhere. IBM Slumps 21% YTD: Time to Reassess the Stock? Negative Sentiment: Coverage also highlighted IBM’s revenue miss, which contributed to a sharp selloff, and noted that the stock has underperformed the S&P 500. A pending securities-fraud investigation and a senior executive’s multimillion-dollar stock sale add further overhang, although neither necessarily changes IBM’s underlying business outlook. IBM Securities Fraud Investigation International Business Machines Profile (Free Report)

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.

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Belpointe Asset Management LLC grew its stake in International Business Machines Corporation (NYSE:IBM – Free Report) by 31.3% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 13,799 shares of the technology company’s stock after purchasing an additional 3,292 shares during the period. Belpointe Asset Management LLC’s holdings in International Business Machines were worth $3,881,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the stock. Basepoint Wealth LLC purchased a new stake in shares of International Business Machines in the fourth quarter valued at about $25,000. Portus Wealth Advisors LLC purchased a new position in International Business Machines during the first quarter worth about $26,000. Cornerstone Financial Management LLC acquired a new stake in International Business Machines in the fourth quarter valued at about $28,000. SWAN Capital LLC acquired a new stake in International Business Machines in the third quarter valued at about $28,000. Finally, Bare Financial Services Inc boosted its holdings in International Business Machines by 114.6% in the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company’s stock valued at $29,000 after purchasing an additional 55 shares in the last quarter. Hedge funds and other institutional investors own 58.96% of the company’s stock.

Insiders Place Their Bets In other International Business Machines news, SVP Robert David Thomas sold 25,000 shares of the company’s stock in a transaction dated 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 sale, the senior vice president owned 47,800 shares of the company’s stock, valued at $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.27% of the company’s stock.

International Business Machines Stock Performance NYSE IBM opened at $233.73 on Tuesday. The business has a 50 day moving average price of $244.18 and a 200 day moving average price of $247.91. The company has a market capitalization of $220.20 billion, a P/E ratio of 20.74, a PEG ratio of 2.31 and a beta of 0.70. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. International Business Machines (NYSE:IBM – Get Free Report) last posted its earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS 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 company had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. During the same period in the previous year, the business earned $2.80 earnings per share. International Business Machines’s quarterly revenue was up 1.1% compared to the same quarter last year. Sell-side analysts expect that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be paid a $1.69 dividend. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines’s dividend payout ratio is presently 59.98%.

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

Positive Sentiment: IBM’s acquisition of HRL Laboratories adds silicon-spin qubit, advanced materials and manufacturing expertise that could improve the company’s ability to develop scalable quantum-computing systems. The deal strengthens IBM’s technology pipeline, although commercial benefits may take years to materialize. Can IBM’s HRL Acquisition Boost Its Quantum Computing Capabilities? Positive Sentiment: Susquehanna analyst James Friedman raised his IBM price target to $235, citing several upcoming quantum-computing catalysts. However, his caution indicates that quantum remains an emerging opportunity rather than an immediate earnings driver. Can Quantum Computing Save IBM Stock? Positive Sentiment: A new market report identifies IBM as a leading enterprise blockchain and Blockchain-as-a-Service provider, highlighting its cloud-native offerings and exposure to expected blockchain-market growth. IBM Emerges As a Leading Enterprise Blockchain Provider Neutral Sentiment: Research reports forecast growth in biological computing, computer-based sensing, business service management, UNIX and high-throughput computing. IBM is listed among market participants, but the reports do not announce contracts, revenue changes or specific financial benefits for the company. Negative Sentiment: Coverage says IBM’s stock has fallen sharply after missing second-quarter revenue expectations, reinforcing investor concerns about product and top-line momentum. Quantum initiatives may not offset near-term execution concerns. IBM Stock Falls 19%: Will Quantum Computing Spark a Recovery? Negative Sentiment: A securities law firm announced an investigation into possible securities-law violations following IBM’s significant decline. The announcement is not a finding of wrongdoing, but it adds headline and potential litigation risk. IBM Investment Losses and Pending Securities Fraud Investigation Negative Sentiment: Reports of a senior executive selling approximately $5.8 million of IBM stock may weigh modestly on sentiment, though insider sales can reflect personal financial planning and are not necessarily evidence of deteriorating fundamentals. IBM SVP Sells $5.758 Million in Stock Wall Street Analysts Forecast Growth IBM has been the topic of a number of analyst reports. Sanford C. Bernstein restated a “market perform” rating on shares of International Business Machines in a research note on Thursday, July 16th. Craig Hallum assumed coverage on International Business Machines in a report on Wednesday, August 19th. They issued a “buy” rating for the company. Stifel Nicolaus decreased their target price on shares of International Business Machines from $290.00 to $235.00 and set a “buy” rating on the stock in a research report on Monday, July 20th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $270.00 price target on shares of International Business Machines in a research note on Tuesday, July 21st. Finally, Piper Sandler upgraded shares of International Business Machines to an “overweight” rating in a report on Tuesday, June 23rd. Sixteen research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $265.90.

Check Out Our Latest Stock Analysis on International Business Machines

International Business Machines Profile (Free Report)

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.

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Convergence Investment Partners LLC boosted its stake in International Business Machines Corporation (NYSE:IBM – Free Report) by 45.5% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 39,218 shares of the technology company’s stock after acquiring an additional 12,272 shares during the period. International Business Machines comprises approximately 1.0% of Convergence Investment Partners LLC’s portfolio, making the stock its 12th largest position. Convergence Investment Partners LLC’s holdings in International Business Machines were worth $11,029,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of IBM. Basepoint Wealth LLC acquired a new stake in shares of International Business Machines during the fourth quarter worth $25,000. Portus Wealth Advisors LLC acquired a new position in International Business Machines during the first quarter worth $26,000. Cornerstone Financial Management LLC purchased a new position in International Business Machines in the 4th quarter valued at approximately $28,000. SWAN Capital LLC purchased a new position in International Business Machines in the 3rd quarter valued at approximately $28,000. Finally, Bare Financial Services Inc raised its position in International Business Machines by 114.6% during the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company’s stock worth $29,000 after acquiring an additional 55 shares during the last quarter. 58.96% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets A number of analysts recently commented on the company. BMO Capital Markets decreased their price objective on International Business Machines from $270.00 to $230.00 and set a “market perform” rating on the stock in a research note on Thursday, July 23rd. Bank of America lifted their target price on International Business Machines from $315.00 to $330.00 and gave the company a “buy” rating in a report on Monday, July 6th. Barclays cut their target price on shares of International Business Machines from $288.00 to $262.00 and set an “overweight” rating on the stock in a research note on Thursday, July 23rd. Oppenheimer downgraded International Business Machines from an “outperform” rating to a “market perform” rating in a research report on Wednesday, July 15th. Finally, JPMorgan Chase & Co. lowered their target price on International Business Machines from $291.00 to $250.00 and set an “overweight” rating for the company in a research note on Friday, July 17th. Sixteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $265.40.

View Our Latest Research Report on International Business Machines Here are the key news stories impacting International Business Machines this week:

Positive Sentiment: IBM’s reported dual-architecture 2-nanometer mainframe processor, designed to run IBM and Arm workloads on the same core, strengthens its infrastructure strategy and could broaden demand among enterprise customers. The company also advanced modular cryogenic quantum systems and applied AI experiences, reinforcing its effort to connect mainframe, AI and quantum technologies. Is IBM’s Dual-Architecture 2nm Mainframe Reshaping The Investment Case for IBM? Positive Sentiment: Quantum computing’s potential to undermine current encryption is expected to drive post-quantum cybersecurity spending through 2030. IBM is identified as one of the companies positioned to benefit from that long-term demand. Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch Positive Sentiment: Recent commentary remains constructive on IBM’s valuation and income profile, suggesting investors may be willing to hold the stock while waiting for stronger growth from AI and infrastructure investments. IBM: Get Paid To Wait For Growth Neutral Sentiment: IBM’s US Open fan activations and sports-focused AI research increase visibility for its AI and cloud capabilities, but the marketing initiatives are unlikely to materially change near-term financial results. IBM Brings AI-Powered US Open Fan Experience Back to Madison Square Park Negative Sentiment: A securities law firm announced an investigation into whether IBM may have misled investors following a significant stock decline. The notice is an investor solicitation and provides no established finding of misconduct, but it adds legal and reputational uncertainty. Investor Notice: IBM Investigated for Potentially Misleading Investors Negative Sentiment: IBM’s latest quarterly revenue came in below analysts’ expectations, tempering enthusiasm around its growth outlook even though earnings per share matched consensus. This keeps execution and monetization of its AI initiatives as key investor concerns. International Business Machines Stock Performance International Business Machines stock opened at $235.78 on Monday. International Business Machines Corporation has a 12-month low of $199.19 and a 12-month high of $332.46. The company has a market capitalization of $222.14 billion, a price-to-earnings ratio of 20.92, a price-to-earnings-growth ratio of 2.31 and a beta of 0.70. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The firm’s fifty day moving average price is $244.57 and its 200 day moving average price is $248.32.

International Business Machines (NYSE:IBM – Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.93. The company had revenue of $17.16 billion during the quarter, compared to analysts’ expectations of $17.46 billion. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The firm’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same period in the prior year, the company posted $2.80 EPS. On average, research analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be paid a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines’s dividend payout ratio (DPR) is 59.98%.

Insider Transactions at International Business Machines In other International Business Machines news, SVP Robert David Thomas sold 25,000 shares of International Business Machines stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the sale, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. The trade was a 34.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.27% of the stock is owned by corporate insiders.

About International Business Machines (Free Report)

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.

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First National Trust Co trimmed its stake in shares of International Business Machines Corporation (NYSE:IBM – Free Report) by 16.6% in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 37,249 shares of the technology company’s stock after selling 7,424 shares during the period. First National Trust Co’s holdings in International Business Machines were worth $10,475,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in International Business Machines during the 4th quarter valued at $2,446,429,000. Capital World Investors lifted its holdings in shares of International Business Machines by 29.2% during the 4th quarter. Capital World Investors now owns 22,021,912 shares of the technology company’s stock valued at $6,523,720,000 after buying an additional 4,976,756 shares during the period. Ascentis Wealth Management LLC boosted its stake in shares of International Business Machines by 27,169.6% in the 2nd quarter. Ascentis Wealth Management LLC now owns 3,224,635 shares of the technology company’s stock worth $906,800,000 after buying an additional 3,212,810 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of International Business Machines by 83.4% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,617,117 shares of the technology company’s stock worth $1,663,847,000 after acquiring an additional 2,553,552 shares during the period. Finally, Corient Private Wealth LLC grew its holdings in shares of International Business Machines by 359.6% in the fourth quarter. Corient Private Wealth LLC now owns 1,896,675 shares of the technology company’s stock worth $561,814,000 after acquiring an additional 1,484,026 shares during the period. Institutional investors own 58.96% of the company’s stock.

Analysts Set New Price Targets Several brokerages have issued reports on IBM. HSBC set a $175.00 target price on International Business Machines and gave the stock a “reduce” rating in a research report on Thursday, July 16th. Weiss Ratings cut shares of International Business Machines from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, June 24th. The Goldman Sachs Group set a $270.00 price objective on shares of International Business Machines in a report on Thursday, July 23rd. Morgan Stanley cut their target price on shares of International Business Machines from $293.00 to $190.00 and set an “equal weight” rating for the company in a research report on Thursday, July 23rd. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $270.00 target price on shares of International Business Machines in a report on Tuesday, July 21st. Sixteen research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, International Business Machines currently has an average rating of “Moderate Buy” and a consensus target price of $265.40.

Read Our Latest Stock Analysis on International Business Machines Insider Buying and Selling In other International Business Machines news, SVP Robert David 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 transaction of $5,758,000.00. Following the sale, the senior vice president owned 47,800 shares in the company, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.27% of the company’s stock.

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

Positive Sentiment: IBM’s reported dual-architecture 2-nanometer mainframe processor, designed to run IBM and Arm workloads on the same core, strengthens its infrastructure strategy and could broaden demand among enterprise customers. The company also advanced modular cryogenic quantum systems and applied AI experiences, reinforcing its effort to connect mainframe, AI and quantum technologies. Is IBM’s Dual-Architecture 2nm Mainframe Reshaping The Investment Case for IBM? Positive Sentiment: Quantum computing’s potential to undermine current encryption is expected to drive post-quantum cybersecurity spending through 2030. IBM is identified as one of the companies positioned to benefit from that long-term demand. Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch Positive Sentiment: Recent commentary remains constructive on IBM’s valuation and income profile, suggesting investors may be willing to hold the stock while waiting for stronger growth from AI and infrastructure investments. IBM: Get Paid To Wait For Growth Neutral Sentiment: IBM’s US Open fan activations and sports-focused AI research increase visibility for its AI and cloud capabilities, but the marketing initiatives are unlikely to materially change near-term financial results. IBM Brings AI-Powered US Open Fan Experience Back to Madison Square Park Negative Sentiment: A securities law firm announced an investigation into whether IBM may have misled investors following a significant stock decline. The notice is an investor solicitation and provides no established finding of misconduct, but it adds legal and reputational uncertainty. Investor Notice: IBM Investigated for Potentially Misleading Investors Negative Sentiment: IBM’s latest quarterly revenue came in below analysts’ expectations, tempering enthusiasm around its growth outlook even though earnings per share matched consensus. This keeps execution and monetization of its AI initiatives as key investor concerns. International Business Machines Stock Performance NYSE:IBM opened at $235.78 on Friday. The stock has a 50-day simple moving average of $244.57 and a two-hundred day simple moving average of $248.65. International Business Machines Corporation has a 52-week low of $199.19 and a 52-week high of $332.46. The company has a debt-to-equity ratio of 1.63, a quick ratio of 0.74 and a current ratio of 0.79. The firm has a market capitalization of $222.14 billion, a PE ratio of 20.92, a P/E/G ratio of 2.31 and a beta of 0.70.

International Business Machines (NYSE:IBM – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 EPS 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 during the quarter, compared to analysts’ expectations of $17.46 billion. During the same quarter in the prior year, the business posted $2.80 earnings per share. The business’s quarterly revenue was up 1.1% on a year-over-year basis. Analysts forecast that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be issued a $1.69 dividend. This represents a $6.76 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Monday, August 10th. International Business Machines’s dividend payout ratio is currently 59.98%.

International Business Machines Company Profile (Free Report)

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.

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It has been about a month since the last earnings report for IBM (IBM - Free Report) . Shares have added about 13.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is IBM due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

IBM Q2 Earnings Meet Estimates, Revenue Misses on Deal Delays

IBM reported relatively modest second-quarter 2026 results with adjusted earnings of $2.93 per share, up 5% year over year and in line with the Zacks Consensus Estimate. Revenues rose 1.1% to $17.16 billion but missed the consensus mark of $17.32 billion by 0.9%.

The top-line miss reflected delayed large, capital-expenditure-sensitive software transactions and weaker IBM Z revenues. Software annual recurring revenue reached $24.6 billion, up 8% year over year, supported by continued strength in Red Hat, HashiCorp and Confluent.

Software Growth Slows on Transaction Timing

Software revenues increased 5.1% year over year to $7.76 billion. Hybrid Cloud revenues rose 11%, while Data advanced 19%, or 18% at constant currency. Automation grew 4%, or 3% at constant currency.

Transaction Processing revenues fell 8%, or 9% at constant currency, as clients redirected spending toward servers, storage and memory amid supply constraints and expected price increases. Management observed that several large deals did not close on schedule, accounting for most of the quarterly shortfall.

About 80% of annual software revenues are recurring, comprising subscription, consumption and support streams. This portion delivered healthy growth, while OpenShift annual recurring revenue reached $2.2 billion.

HashiCorp posted another record-bookings quarter, while Confluent remained on track after its first full quarter since the acquisition. Software segment profit rose 9% to $2.50 billion, lifting margin 110 basis points (bps) to 32.2%.

Consulting Gains from AI Transformation Demand

Consulting revenues were nearly flat at $5.33 billion, up 1% in constant currency. Strategy and Technology and Intelligent Operations each increased 1% on a constant-currency basis. Signings grew 6% to $5.0 billion, marking a second consecutive quarter of growth. Generative AI represented about 50% of signings and more than 30% of backlog. Segment profit increased 15.1% to $647 million, while margin expanded 160 bps to 12.1%.

Infrastructure Segment Mix Weighs

Infrastructure revenues declined 7.4% to $3.84 billion. Hybrid Infrastructure fell 10%, reflecting a 42% plunge in IBM Z revenues, while Infrastructure Support slipped 1%. Distributed Infrastructure surged 37% and delivered its strongest quarterly growth on record. Power and Storage exited the quarter with nearly $500 million of backlog. Infrastructure segment profit declined 13% to $835 million, and margin contracted 150 bps to 21.8%.

IBM Expands Operating Profit Despite Gross Margin Pressure

Non-GAAP gross profit was $10.19 billion, essentially flat year over year, while non-GAAP gross margin declined 70 bps to 59.4%. The pressure mainly reflected the revenue shortfall and business mix.

Non-GAAP pre-tax income rose 3% to $3.29 billion, with margin expanding 30 bps to 19.2%. Adjusted EBITDA increased 2% to $4.8 billion, and margin improved about 20 bps to 27.8%, aided by productivity initiatives.

IBM Maintains Cash Flow Discipline

IBM generated $2.6 billion in operating cash flow during the quarter, up $0.9 billion year over year. Free cash flow was $2.5 billion, down $0.3 billion, while first-half free cash flow remained flat at $4.8 billion.

The company ended June with $8.20 billion in cash, restricted cash and marketable securities. Total debt was $62 billion, including $13 billion of IBM Financing debt. IBM returned $1.59 billion to shareholders through quarterly dividends.

IBM Trims Revenue View but Raises Margin Target

For 2026, IBM now expects constant-currency revenue growth of 4% to 5%, down from its prior expectation of more than 5%. The company continues to expect free cash flow to increase by about $1 billion year over year.

Software growth is projected at 6% to 8%, while Infrastructure is expected to grow in the low single digits. Consulting growth is forecast to accelerate to the low-to-mid-single-digit range. IBM now expects 100 bps of operating pre-tax margin expansion for the year.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

VGM ScoresAt this time, IBM has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, IBM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

New cryogenic quantum fridges designed to link hundreds of quantum chips. Cooled to below 15 millikelvin, more than 180 times colder than deep space, the build out marks a step forward in the engineering required for future quantum computers. Advances IBM's quantum roadmap to deliver the world's first fault-tolerant quantum computer in 2029. , /PRNewswire/ -- IBM (NYSE: IBM) today announced it has successfully joined and cooled down two cryogenic modules into a single environment. The new architecture is designed to scale into the modular, shared, and ultra-cold system required to link hundreds of quantum chips into a more powerful quantum computer capable of solving large problems. Its deployment is a milestone on IBM's path to delivering IBM Quantum Starling in 2029, which is expected to be the world's first fault-tolerant quantum computer and will integrate advances across error correction, processor design, decoding, and systems engineering.

IBM’s scalable and modular cryogenic system to support fault-tolerant quantum computing. (Credit: IBM)

IBM’s scalable and modular cryogenic system to support fault-tolerant quantum computing. (Credit: IBM)

IBM’s scalable and modular cryogenic system to support fault-tolerant quantum computing. (Credit: IBM) Combined, the first two operational modules stand more than 8 feet tall and 8 feet wide, and initial tests demonstrated they can jointly cool down to 4 Kelvin (the temperature of liquid helium) in under 5 days, reaching a final temperature of below 15 millikelvin shortly after. Each module's vacuum enclosure offers up to 12 times more wiring space than the most widely used IBM quantum systems, enabling more chip-to-chip connections both within and between modules.

IBM's new box-shaped design allows modules to connect in a tight row and use this larger space to directly link quantum processors with IBM's "L-coupler" technology. L-couplers connect separate quantum chips together to share information, communicate, and operate as part of a larger quantum computer.

By 2027, IBM's quantum roadmap plans to use L-couplers to link multiple processors into a larger quantum computer with at least 1,000 programmable qubits, which are qubits that can be directly used to perform computations. Towards this goal, IBM will install IBM Quantum Nighthawk processors into the cryogenic modules later this year to expand operational performance testing. At the time Starling is delivered, IBM plans for each cryogenic module to house thousands of qubits.

IBM's plans for Starling were introduced last year with a new error correction code that dramatically reduces the physical resources required for fault tolerance. Since then, the company's progression has remained on course, including the demonstration of core hardware components and breakthroughs in efficient error-correction decoding.

"Bringing fault-tolerant quantum computers to industries depends on several fundamental advances," said Jay Gambetta, Director of IBM Research and IBM Fellow. "The successful connection and operation of these cryogenic modules signals a leap forward in that direction and will accelerate our progress alongside continued innovation in quantum hardware, software, and algorithms."

IBM expects its scalable cryogenic modules to help speed its pace of innovation. For example, three essential components of IBM Quantum System Two's environment are built into the new architecture, but now in a way that allows each part to be independently tested, improved, and rapidly iterated.

The delivery of these new cryogenic quantum modules is further evidence that IBM is systematically delivering against its quantum roadmap, solving another one of the major hurdles required to accelerate its path to fault-tolerant quantum computing.

About IBM

IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of governments and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.

Media contacts:

Dave Mosher
IBM
[email protected]

Erin Angelini
IBM
[email protected] 

SOURCE IBM

Key Takeaways IBM will deploy NVIDIA HGX B300 systems on its cloud under a $240 million Together AI deal.The agreement supports high-performance AI inference and more cost-effective large-scale workloads.IBM and NVIDIA are expanding work across analytics, hybrid cloud infrastructure and AI software.
International Business Machines Corporation (IBM - Free Report) has entered into a multi-year, $240 million agreement with Together AI to support the growing demand for enterprise artificial intelligence (AI) inference. The partnership will enable IBM to expand its cloud infrastructure offerings for open-source AI workloads and strengthen its position in the rapidly growing AI infrastructure market.

Under the agreement, the company plans to deploy a large cluster of NVIDIA Corporation’s (NVDA - Free Report) HGX B300 systems on IBM Cloud and provide Together AI with enterprise-grade cloud infrastructure powered by NVIDIA’s advanced computing and Spectrum-X Ethernet networking technologies. The deployment is designed to support high-performance AI inference and make large-scale workloads more cost-effective.

The collaboration also expands IBM’s broader relationship with NVIDIA across AI infrastructure and software. The companies are advancing solutions in GPU-accelerated data analytics, unstructured data processing, hybrid cloud infrastructure and consulting services. These capabilities are expected to help enterprises deploy AI workloads across cloud and on-premises environments with greater performance, flexibility and scalability.

Increasing investment in next-generation AI infrastructure is likely to create new opportunities for IBM as enterprises expand their AI spending. The deal could help the company expand its customer base and generate long-term revenues.

How Are Competitors Advancing?IBM faces competition from Microsoft Corporation (MSFT - Free Report) and Amazon.com, Inc. (AMZN - Free Report) . Microsoft is expanding its AI capabilities with new features in Copilot. The company is preparing its next-generation Maia 300 AI chip to strengthen its AI infrastructure and reduce reliance on other chip suppliers. Microsoft continues to invest in AI across Windows, Microsoft 365 and Azure to help businesses and developers work more efficiently.

Amazon is strengthening its AI services through Amazon Web Services with new models, chips and cloud tools. The company is helping businesses build AI applications faster with services such as Bedrock and SageMaker. Amazon is investing heavily in data centers and AI infrastructure to meet growing demand.

IBM’s Price Performance, Valuation & EstimatesIBM shares have lost 0.5% over the past year against the industry’s growth of 190.8%.

Image Source: Zacks Investment Research

From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 3.07, below the industry average of 5.32.

Image Source: Zacks Investment Research

Earnings estimates for 2026 have declined 0.2% to $12.33 over the past 60 days, while the same for 2027 have decreased 1.4% to $13.23.

Image Source: Zacks Investment Research

IBM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

First large-scale inference cluster with Together AI on IBM Cloud using NVIDIA HGX B300 systems to help enterprises run AI workloads, designed for fast and efficient production

, /PRNewswire/ -- IBM (NYSE: IBM) announced a collaboration with Together AI to deliver IBM and NVIDIA AI infrastructure. Under a multi-year $240M agreement between IBM and Together AI, IBM is positioned to deploy a large cluster of NVIDIA HGX B300 systems on IBM Cloud with expected availability in Q1 2027. Together AI will use this cluster to provide open-source model inference. This deployment is the first dedicated, large-scale cluster built for inference on IBM Cloud using HGX B300 systems and NVIDIA Spectrum-XTM Ethernet networking. According to NVIDIA, it is built to deliver 30x more AI factory output compared to prior generations.

This collaboration aims to enable Together AI to deliver better performance and token economics to enterprises as they look to efficiently scale their AI deployments. Together AI is built on the principle that open-source models are essential for the future of AI and developers should be able to build using open, modular stacks. The company recently raised an $800M Series C financing round at an $8.3B valuation to expand its AI Native Cloud and its platform spans capabilities across inference, training, fine tuning, and agentic workflows. The company reports that it has seen significant momentum for its inference product, now serving 400 trillion tokens monthly.         

Together AI selected IBM with NVIDIA because of their innovative product roadmaps and their ability to deliver GPU capacity at the pace required for rapid AI scaling and lowest token cost. Building on IBM's expertise in delivering enterprise-grade cloud capabilities, this collaboration aims to help Together AI to continue its expansion into the enterprise space while making open-source AI more accessible to developers and enterprises around the world.

"Enterprises want the performance of the best frontier models without the closed-model price tag, and that only works if the infrastructure underneath is fast and reliable at scale," said Vipul Ved Prakash, CEO at Together AI. "Working alongside IBM with NVIDIA gives us that foundation. This cluster lets us bring production-grade inference to more companies, faster, and it's a big step in our push to make open-source AI the obvious choice for enterprises."

IBM and NVIDIA Expand Collaboration to Power the Next Wave of AI Innovation

"Enterprises are in a race to adopt agentic AI at scale to drive real business outcomes," said Alan Peacock, General Manager of IBM Cloud. "IBM and NVIDIA are delivering scalable, economical, enterprise-grade AI infrastructure that can help Together AI accelerate innovation for the next generation of AI infrastructure."

"AI factories are becoming essential enterprise infrastructure—like electricity and telecommunications—turning compute and data into intelligence," said Dion Harris, Senior Director, HPC and AI Infrastructure Solutions, NVIDIA. "With NVIDIA HGX B300 systems and NVIDIA Spectrum-X Ethernet networking on IBM Cloud, IBM and Together AI will deliver an accelerated computing platform to help enterprises deploy open-source AI with the performance, efficiency and scale required for real-time AI services."

This work is the latest example of a larger collaboration between IBM and NVIDIA, who continue to work together to advance AI across infrastructure and software, to deliver performance and efficiency for enterprise and startup clients. A hybrid environment on IBM Cloud powered by NVIDIA GPUs connected with NVIDIA Spectrum-X Ethernet networking and Together AI's inference platform gives organizations a reliable foundation to build, deploy and scale AI systems. Additionally, IBM and NVIDIA recently announced progress across GPU-native data analytics, unstructured data extraction, on-premises and cloud infrastructure, and consulting services. These advancements are designed to help organizations operationalize AI at scale. For more information about the IBM and NVIDIA collaboration, visit www.ibm.com/products/gpu-ai-accelerator/nvidia.

Statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain a competitive edge in their industries. Thousands of governments and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.

About Together AI
Together AI is the AI Native Cloud, combining state-of-the-art open-source models, high-performance infrastructure, and frontier research in AI efficiency and scalability. Founded in 2022, Together AI powers over a million of developers and some of the world's most demanding AI workloads, delivering production-scale inference, training, and reinforcement learning for the next generation of AI-native companies.

Media Contact
Kate Gazzillo 
[email protected]

SOURCE IBM

© Sundry Photography / iStock Editorial via Getty Images

At $233.43, IBM (NYSE:IBM | IBM Price Prediction) sits in an unresolved setup. The stock has rebounded 10.6% from its post-earnings low of $211.15, but the setup remains too contested to justify conviction in either direction.

IBM is repositioned around hybrid cloud, AI orchestration through watsonx, and Red Hat software targeting double-digit growth. The July collapse from a 52-week high of $332.46 followed a rare EPS miss and a securities fraud inquiry into pipeline disclosures, breaking a five-quarter beat streak.

The rebound has been sharp, but investors are paying up for a business whose growth engine and legal overhang pull in opposite directions.

The Bull Case: A Recurring-Revenue Compounder on Sale IBM trades at forward P/E of 19 against a trailing 21, cheap for a business generating 34.5% return on equity and $4.8 billion of first-half free cash flow.

Software, now 45% of revenue, is 80% recurring with Annual Recurring Revenue of $24.6 billion, up 8% year-over-year. Red Hat accelerated to 11% growth, Data grew 19%, and the GenAI book surpassed $12.5 billion inception-to-date. Management raised full-year revenue guidance to 4% to 5% constant currency despite the miss.

A 2.86% dividend yield backed by 31 consecutive years of increases and a 0.705 beta offer rare income defensiveness in a momentum-driven market.

The Bear Case: Execution Cracks and a Legal Cloud Bears see a business that missed expectations at $2.93 versus $2.97 on revenue growth of just 1.09%. Infrastructure fell 7.4% with IBM Z mainframe revenue down 42%, and Consulting was flat at 0.2% growth. Operating income dropped 19.67% year-over-year.

The securities fraud inquiry into pipeline disclosures directly scrutinizes the credibility of forward commentary bulls rely on. It surfaced alongside a miss management attributed to “tens of large deals” slipping. Reddit narratives framed the collapse as “AI infra capex eating into IT spending”, a structural concern rather than timing. An SVP sold 4,035 shares at $286.725 in early July, and IBM has underperformed the S&P 500 by more than 30 percentage points year-to-date.

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The Hold Case: Too Many Unresolved Variables Bulls claim one-third of slipped deals closed within three weeks of quarter-end, suggesting deferral over demand destruction. Bears note that crowd sentiment and the fraud inquiry remain unresolved after one rebound week.

Catalysts that would break the tie are known: the Q3 report, an inquiry update, and evidence that software growth trends toward the high end of the revised 6% to 8% range. Paying up for a rebound already 10.6% off lows asks investors to underwrite a resolution they cannot yet see.

The Data Behind the Verdict IBM trades at $233.43 against an analyst consensus target of $244.16, implying modest single-digit upside. Coverage spans 23 analysts:

Strong Buy: 3 Buy: 12 Hold: 7 Strong Sell: 1 Year-to-date, IBM is down 20.16% while the S&P 500 is up 12.71%, a striking gap for a stock trading at a forward P/E of 19 with an EV/EBITDA of 16. Consensus has yet to fully absorb the fraud inquiry.

The Verdict: Waiting Is the Right Call At $233, IBM sits in wait-and-see territory.

The bull thesis rests on software durability and free cash flow expected to grow ~$1 billion year-over-year. The bear thesis rests on execution risk and an active fraud inquiry. Neither is likely to resolve before the Q3 report.

A Buy trigger looks like software growth tracking toward 10% in the back half, mainframe revenue normalizing above 120%, and closure of the fraud inquiry without material findings. A Sell trigger looks like additional deal slippage in Q3, downward guidance revision, or inquiry expansion.

Patience carries a modest cost: a 2.86% dividend yield and low-single-digit implied upside against a still-unresolved legal overhang. With a legal overhang unresolved and a rebound already partially priced in, waiting for the next earnings report is disciplined.

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Contact [email protected] for any questions or corrections.

Key Takeaways IBM posted 1% revenue growth as software and financing offset weakness in its infrastructure business. IBM views low-single-digit infrastructure unit growth and stronger AI adoption to support 2026 performance. ETFs like SPDG hold significant IBM positions, offering diversified exposure to the tech company. Shares of International Business Machines (IBM - Free Report) inched up 0.4% on July 23, immediately after its weaker-than-expected second-quarter 2026 results. Despite missing Wall Street estimates on both revenues and earnings, the stock has continued its recovery, gaining 8.7% since the results were reported.

This resilient price action indicates that the sell-off following IBM's mid-July preliminary earnings release had already priced in the worst-case scenario, clearing the way for a relief rally once official numbers were delivered.

Looking ahead, IBM expects to deliver 100 basis points of operating pretax margin expansion, with productivity more than offsetting the revenue-related headwinds. IBM also continues to project that free cash flow will increase approximately $1 billion.

While IBM continues to see strong underlying demand in subscription and consumption-based software, its transactional revenues have been performing poorly owing to the shift in buying patterns. Notably, IBM’s transactional revenues have been declining lately because enterprise clients temporarily shifted capital budgets toward scarce AI hardware, causing delays in high-margin mainframe and transaction-processing software orders.

Amid this backdrop of transactional volatility, investors seeking exposure to IBM’s long-term enterprise AI momentum, without absorbing single-stock earnings risk, may prefer a basket strategy via Exchange-Traded Funds (ETFs) heavily weighted in the tech giant.

But before suggesting those ETFs, let us delve a bit deeper into IBM’s second-quarter results to assess the company’s performance across other metrics.

A Closer Look at IBM’s Q2 EarningsIBM’s second-quarter adjusted earnings per share (EPS) of $2.93 came in line with the Zacks Consensus Estimate, while its revenues missed the consensus mark by a whisker. 

The company delivered revenue growth of 1%, while its operating margin (pre-tax) expanded 30 basis points (bps). 

Segment-wise, the company delivered solid revenue growth in its software and financing businesses, whereas its infrastructure unit posted a 7% slump in the top line.  Poor performance of its Z application primarily hurt the infrastructure business segment. 

In response to tight infrastructure supply, IBM has been strengthening its supply chain throughout the first half of the year. This proactive move positions the company to meet robust second-half customer demand in its Infrastructure unit.

As of the end of the second quarter, the company generated net cash from operating activities of $2.6 billion, up $0.9 billion year over year.

However, IBM's free cash flow went down $0.3 billion year over year to $2.5 billion. The company returned $3.2 billion to shareholders in the form of dividends through the first half of 2026. 

Looking ahead, IBM expects rapid uptake for its latest AI tools, with almost 50% of z17 clients already adopting the Spyre Accelerator and watsonx Code Assistant for Z users expanding MIPS workload capacity three times faster than their peers.

For its infrastructure business, the company expects revenues to grow by low single digits in 2026, driven by growth in Distributed Infrastructure and continued strong program-to-program performance in IBM Z through the second half of 2026.  

IBM-Heavy ETFs to WatchConsidering IBM’s aforementioned outlook, investors may want to keep the following ETFs on their watchlist and invest when appropriate to gain exposure to IBM while minimizing single-stock concentration risk.

First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)  

This fund, with net assets worth $4.18 billion, offers exposure to 94 technology and telecommunications companies that pay a regular or common dividend. IBM holds the fourth position in this ETF, with 6.71% weightage in the fund. 

TDIV has surged 21.8% over the past year. It charges 50 basis points (bps) as fees. 

FT Vest Technology Dividend Target Income ETF (TDVI - Free Report)  

This fund, with net assets worth $524 million, seeks to provide investors with current income with a secondary objective of providing capital appreciation. IBM holds the fourth position in this ETF, with 6.70% weightage in the fund. 

TDVI has soared 13.7% over the past year. It charges 75 bps as fees. 

State Street SPDR Portfolio S&P Sector Neutral Dividend ETF (SPDG - Free Report)  

This fund, with net assets worth $12.8 million, offers exposure to 275 large, mid, and small-cap companies that have increased or maintained their dividend for seven or more consecutive years. IBM holds the third position in this ETF, with 5.04% weightage in the fund. 

SPDG has gained 19.7% over the past year. It charges 5 bps as fees.

By PYMNTS  |  August 2, 2026

 | 

IBM’s CEO says quantum computing will soon be a source of growth for the company.

“I think that in 2028 or 2029, you’ll see it have a measurable impact on our top line and bottom line,” Arvind Krishna said in an interview with CNBC last week. “By the end of the 2030s, we are now pretty convinced this is a trillion dollars of value.”

His comments came the same day IBM and startup Algorithmiq announced new research showing what the companies dubbed “quantum advantage.”

This research “demonstrates that quantum computers can provide trusted solutions more efficiently, more cheaply, or more accurately than leading classical compute methods — which has long been considered a key milestone in the field,” the companies said.

Krishna told CNBC his company’s quantum computer uncovered behaviors in materials that researchers had not been able to record using conventional computing, and that these findings could someday produce things like better batteries and advances in medicine.

“A quantum computer can do things better, faster, cheaper, in a way that normal classical computers cannot do at this time,” Krishna said.

The report added that although skeptics contend quantum computing is years away from having commercial benefits due to challenges like hardware complexity and scalability, Krishna said IBM had begun seeing meaningful movement toward real-world applications.

The company in April unveiled two new hubs for developing artificial intelligence and quantum computing projects, one in Illinois and the other in collaboration with the Massachusetts Institute of Technology in Cambridge. 

Weeks later, the U.S. Department of Commerce announced its intent to provide $2.013 billion in federal incentives to nine companies to support quantum computing efforts, with IBM getting nearly half of that money.

This is happening amid debate about the security implications of quantum computing. Research from Google published earlier this year found that quantum computers capable of breaking encryption could arrive by 2029, much sooner than earlier forecasts putting that development at up to a decade away.

“We want to raise awareness on this issue and are providing the cryptocurrency community with recommendations to improve security and stability before this is possible, including transitioning blockchains to post-quantum cryptography (PQC), which is resistant to quantum attacks,” Google researchers said in a report in March.

As PYMNTS wrote at the time, this assertion goes against a popular narrative that decentralized systems are inherently more resilient. 

Google’s analysis underscores a structural imbalance, the report said: Traditional financial institutions can quietly update their cryptographic infrastructure, while public blockchains are bound by “transparency, immutability and social consensus.”

Key Takeaways IBM is shifting toward software, hybrid cloud and AI to build steadier, more predictable revenue.IBM's software ARR rose 8% to $24.6 billion, while Red Hat revenues increased 11%.Delayed deals and a 42% drop in IBM Z revenues show infrastructure and timing risks remain. International Business Machines Corporation (IBM - Free Report) is leaning harder into software, hybrid cloud and artificial intelligence to make its revenue base more predictable. That shift is improving visibility, but it has not removed exposure to enterprise budget timing.

The key investor question is whether recurring software streams and AI-related demand can offset near-term execution pressure and the uneven infrastructure cycle.

IBM Builds Around Recurring Software RevenueSoftware is now the center of IBM’s business mix, accounting for 45.2% of GAAP revenues in second-quarter 2026. Segment revenues rose 5% in the quarter, while annual recurring revenue increased 8% to $24.6 billion.

That recurring base matters because about 80% of annual software revenues come from subscription, consumption and support streams. IBM expects Software revenues to grow 6%-8% in 2026 and now targets 100 basis points of operating pretax margin expansion for the year.

IBM Deepens Its Hybrid Cloud PortfolioIBM’s hybrid cloud strategy rests on Red Hat, OpenShift and a broader set of software assets that help enterprises manage applications, data and workloads across complex environments. Red Hat revenues increased 11% in the second quarter, and OpenShift annual recurring revenue reached $2.2 billion.

HashiCorp and Confluent add more depth to that platform approach. HashiCorp posted record bookings, while Confluent remained on track after its first full quarter following the acquisition. Hybrid Cloud revenues rose 11%, and Data revenues advanced 18% on a constant-currency basis.

Microsoft Corporation (MSFT - Free Report) remains a relevant comparison because Azure Arc is designed to run Azure artificial intelligence and data services across cloud and edge environments. Oracle Corporation (ORCL - Free Report) also competes in the same enterprise modernization theme through multicloud deployments and AI database services.

IBM Consulting Turns AI Demand Into BacklogIBM’s Consulting business is showing that enterprise AI work is moving beyond small experiments. Consulting signings rose 6% to $5 billion in the second quarter, marking a second straight quarter of growth.

Generative AI represented about half of Consulting signings and more than 30% of backlog. Revenue growth remained limited at 1% on a constant-currency basis, but segment profit rose 15.1%, and the margin expanded 160 basis points to 12.1%.

That mix suggests AI demand is present, but conversion into revenue remains gradual. IBM still expects Consulting revenues to grow in the low-to-mid-single-digit range in 2026, supported by backlog quality and enterprise transformation work.

IBM Faces Deal Timing and Mainframe PressureThe second quarter also showed why the growth outlook remains exposed to enterprise spending shifts. Total revenues rose 1.1% to $17.16 billion but missed the Zacks Consensus Estimate of $17.32 billion by 0.9%.

The shortfall reflected delayed capital-expenditure-sensitive software transactions and weakness in IBM Z revenues. Clients redirected spending toward servers, storage and memory amid supply constraints and expected price increases.

Infrastructure revenues declined 7% year over year, with IBM Z revenues down 42%. Transaction Processing revenues fell 9% on a constant-currency basis, showing that recurring software strength does not fully shield IBM from infrastructure and enterprise license agreement timing.

IBM’s Mixed Scores Temper the Growth StoryIBM’s transformation remains credible, but the stock’s setup is not one-sided. Recurring software, Red Hat momentum, AI Consulting backlog and productivity actions support the case for steadier growth and margin leverage.

At the same time, delayed deals, mainframe volatility and acquisition-related balance sheet demands keep the story balanced. IBM currently carries a Zacks Rank #3 (Hold), which points to a more neutral near-term earnings revision backdrop.

The Value Score of C and Growth Score of C suggest neither valuation nor growth characteristics stand out strongly. The Momentum Score of D and VGM Score of D point to weaker share-price trends and limited near-term conviction across the combined style framework.

For investors, IBM’s 2026 outlook depends on execution. The software-led model gives the company a stronger base than in past cycles, but the stock still needs clearer evidence that AI demand and recurring revenue can absorb deal timing and infrastructure pressure.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

IBM CEO Arvind Krishna said that only 2% of his company's software could be replaced with applications constructed by artificial intelligence models, as he seeks to reassure Wall Street following disappointing second-quarter results.

"The rest of our software really helps people get ready for AI, unlocking data in real time, reducing the cost and complexity of managing it, going across the hybrid infrastructure, which most of our clients are using," Krishna told CNBC's "Squawk on the Street" on Thursday. "And because it would be what you would call maybe infrastructure software, not applications, I believe it'll be a tailwind for us."

Wall Street has turned skeptical on software stocks over the past couple years due to concerns that AI will disrupt their business models as technology from Anthropic, OpenAI and others gets more powerful. IBM shares are down about 30% this year, and the iShares Expanded Tech-Software Sector Exchange-Traded Fund (IGV) has dropped 17%.

In February, IBM saw shares sink 13% after Anthropic issued a blog post on its Claude Code tool's ability to modernize code written in Cobol, which is often found on mainframes.

Krishna told analysts on Wednesday, after the company's earnings report, that IBM's current-generation z17 mainframe encountered challenges in the quarter. Finance chief Jim Kavanaugh said some customers chose to spend money on other data center equipment, such as servers and storage, as memory prices spike because of AI chip requirements.

For every dollar in revenue IBM generates from mainframe infrastructure, it picks up $3 in software. Just as IBM's Z mainframe business saw revenue drop 42% in the quarter, transaction processing software declined 9%. It was a sudden shift from the first quarter, when Z revenue grew 48%, and transaction processing increased 2%.

During the June quarter, 45% of IBM's revenue came from software, where profit margins are the strongest.

Krishna said Starbucks spends about $2 million per year on IBM software. He said the coffee maker is taking out Tririga lease management software. IBM bought Tririga in 2011, and plans to end support in 2027.

"That is a big component of that 2% I talked about, and I do think that software like that is subject to risk," he said. "By the way, what they had in place was a 10-year-old piece of software."

While IBM stuck with its guidance for a $1 billion bump to free cash flow in 2026, Kavanaugh said Wednesday that he now expects 6% to 8% growth in software revenue for the year. In January, he said he was confident the growth rate would be in the double digits.

Krishna said on Thursday that mainframe hardware capacity is growing, which has implications for software.

"The software on that tends to lag the hardware capacity, and I do think that if we give it another year, you'll find the software will catch back up," he said.

About 75% of deals that slipped from the second quarter should come back to IBM before year end, Krishna said.

"We would avoid giving full credit for the maintained guide until a larger portion of the slipped activity is reflected in reported results," analysts at Jefferies wrote in a Thursday note to clients. They recommend buying the stock.

watch now

International Business Machines Corporation (IBM) Q2 2026 Earnings Call July 22, 2026 5:00 PM EDT

Company Participants

Olympia McNerney - Global Head of Investor Relations
Arvind Krishna - CEO, President & Chairman
James Kavanaugh - CFO and Senior VP of Finance & Operations

Conference Call Participants

Amit Daryanani - Evercore ISI Institutional Equities, Research Division
Brent Thill - Jefferies LLC, Research Division
Benjamin Reitzes - Melius Research LLC
Fatima Boolani - Citigroup Inc., Research Division
Erik Woodring - Morgan Stanley, Research Division
Matthew Swanson - RBC Capital Markets, Research Division

Presentation

Operator

Welcome, and thank you for standing by. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time.

Now I will turn the meeting over to Olympia McNerney, IBM's Global Head of Investor Relations. Olympia, you may begin.

Olympia McNerney
Global Head of Investor Relations

Thank you. I'd like to welcome you to IBM's Second Quarter 2026 Earnings Presentation. I'm Olympia McNerney, and I'm here today with Arvind Krishna, IBM's Chairman, President and Chief Executive Officer; and Jim Kavanaugh, IBM's Senior Vice President and Chief Financial Officer.

We'll post today's prepared remarks and a replay of today's webcast on the IBM Investor website within a couple of hours. The earnings presentation is already available. To provide additional information to our investors, our presentation includes certain non-GAAP measures. For example, all of our references to revenue and signings growth are at constant currency. We provided reconciliation charts for these and other non-GAAP financial measures at the end of the presentation, which is posted to our investor website.

Finally, some comments made in this presentation may be considered forward-looking under the Private Securities Litigation Reform Act of 1995. These statements involve factors that could cause our actual results to differ materially. Additional information about these factors is included in the company's

Company provides updated full-year expectations

, /PRNewswire/ -- IBM (NYSE: IBM) today announced second-quarter 2026 earnings results.

"We are confident in IBM's strategy and portfolio, and in our ability to capture growth opportunities ahead. We fundamentally believe that we are in the early innings of a structural shift for business, and that our portfolio - across software, infrastructure, and consulting - is well-positioned to help our clients tap the value, and manage the challenges, of an AI-driven future," said Arvind Krishna, IBM chairman, president and chief executive officer. "In addition, we are taking action to accelerate our revenue growth and profitability, driving productivity across the company with AI and automation, and heavily investing in commercializing innovation at speed and scale. We now expect constant currency revenue growth in the range of four-to-five percent, and we continue to expect free cash flow to increase by about $1 billion year-over-year for the full year."

Full-Year 2026 Expectations

Revenue: The company now expects full-year constant currency revenue growth in the range of four-to-five percent. At current foreign exchange rates, currency is expected to be neutral to growth for the year Free cash flow: The company continues to expect full-year free cash flow to increase by about $1 billion year-over-year Operational Focus Areas

High-Growth Portfolio: Areas of IBM's software business that help clients manage, deploy and build AI-ready solutions, like Red Hat, the watsonx portfolio, HashiCorp, and Confluent continue to deliver strong performance. Within Distributed Infrastructure, Power and Storage grew at a record pace in the second quarter, now having built up an order backlog of nearly $500 million. Together, these offerings closely map to where client demand is strongest. To capture these growth opportunities, IBM is accelerating changes to its go-to-market model by expanding sales coverage across thousands of additional clients where there is significant opportunity. As AI adoption moves from experimentation to enterprise-scale deployment, the company is also investing in more specialized technical and client-facing talent, including Forward Deployed Engineers. Rapid Innovation at Scale: IBM is acting decisively to capture new opportunities as they arise. Lightwell, a new capability to address open source security vulnerabilities, leverages IBM and Red Hat's trust within the open source community, unique approach to AI, and global scale. In the first two weeks of availability, Lightwell has already made more than 7,500 open source patches available to help clients secure vulnerabilities. Additionally, quantum computing continues to be an investment priority for the company. In May, with the U.S. Department of Commerce, IBM announced a letter of intent to build Anderon, the world's first pure-play quantum wafer foundry. IBM will invest more than $10 billion in quantum over the next five years, and remains on track to deliver the first large-scale fault-tolerant quantum computer by 2029. Productivity Enables Investment and Value: IBM is accelerating productivity by scaling software development leveraging AI, increasing the effectiveness of its sales and marketing organization, and optimizing its supply chain. These efforts help enhance margin and free cash flow, and strengthen the company's ability to capture significant growth opportunities. The company now expects improved pre-tax income margin expansion for the full year. "Although we faced revenue headwinds late in the second quarter, we continued to focus on the fundamentals of our business, including driving productivity, strengthening our portfolio, and generating free cash flow," said James Kavanaugh, IBM senior vice president and chief financial officer. "In a quarter like this, it is critical that our financial and operational discipline remains strong and that we continue to invest for growth while returning value to shareholders through our dividend."

  SECOND-QUARTER 2026 INCOME STATEMENT SUMMARY

  Revenue

  Gross

Profit

    Gross

Profit

Margin

    Pre-tax

Income

  Pre-tax

Income

Margin

  Net

Income

  Diluted

Earnings

Per Share

GAAP from

Continuing

Operations

$ 17.2 B

    $  9.9  B

    57.7

%

  $  2.5  B

    14.4

%

  $  2.2  B

    $   2.27

  Year/Year

1

%

  (1)

%

  (1.0)

Pts

  (5)

%

  (0.9)

Pts

  (1)

%

  (2)

%

Operating

(Non-GAAP)

      $ 10.2 B

    59.4

%

  $  3.3  B

    19.2

%

  $  2.8  B

    $   2.93

  Year/Year

      0

%

  (0.7)

Pts

  3

%

  0.3

Pts

  5

%

  5

%

Segment Results for Second Quarter

Software — revenues of $7.8 billion, up 5 percent:
- Hybrid Cloud (Red Hat) up 11 percent
- Automation up 4 percent, up 3 percent at constant currency
- Data up 19 percent, up 18 percent at constant currency
- Transaction Processing down 8 percent, down 9 percent at constant currency Consulting — revenues of $5.3 billion, flat, up 1 percent at constant currency:
- Strategy and Technology flat, up 1 percent at constant currency
- Intelligent Operations flat, up 1 percent at constant currency Infrastructure — revenues of $3.8 billion, down 7 percent:
- Hybrid Infrastructure down 10 percent
      -- IBM Z down 42 percent
      -- Distributed Infrastructure up 37 percent
- Infrastructure Support down 1 percent Financing — revenues of $0.2 billion, up 12 percent, up 11 percent at constant currency Cash Flow and Balance Sheet

In the second quarter, the company generated net cash from operating activities of $2.6 billion, up $0.9 billion year to year. IBM's free cash flow was $2.5 billion, down $0.3 billion year to year. The company returned $1.6 billion to shareholders in dividends in the second quarter.

For the first six months of the year, the company generated net cash from operating activities of $7.8 billion, up $1.7 billion year to year. IBM's free cash flow was $4.8 billion, flat year to year.

IBM ended the second quarter with $8.2 billion of cash, restricted cash and marketable securities, down $6.3 billion from year-end 2025. The company invested $10.5 billion in acquisitions this year. Debt, including IBM Financing debt of $13.0 billion, totaled $62.0 billion, up $0.7 billion year to date.

Dividend Declaration

The IBM board of directors approved a regular quarterly cash dividend of $1.69 per common share, to stockholders of record on August 10, 2026. With payment of the September 10, 2026 dividend, IBM will have paid consecutive quarterly dividends every year since 1916.

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company's current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including, but not limited to, the following: a downturn in economic environment and client spending budgets; a failure of the company's innovation initiatives; damage to the company's reputation; risks from investing in growth opportunities; failure of the company's intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; the company's ability to successfully manage acquisitions, alliances and divestitures, including integration challenges, failure to achieve objectives, the assumption or retention of liabilities and higher debt levels; fluctuations in financial results; impact of local legal, economic, political, health and other conditions; the company's failure to meet growth and productivity objectives; ineffective internal controls; the company's use of accounting estimates; impairment of the company's goodwill or amortizable intangible assets; the company's ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product and service quality issues; the development and use of AI, including the company's increased AI solutions and use of AI technologies; impacts of business with government clients; reliance on third party distribution channels and ecosystems; cybersecurity and data protection considerations; adverse effects related to climate change and other environmental matters; tax matters; legal proceedings and investigatory risks; the company's pension plans; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company's Form 10-Qs, Form 10-K and in the company's other filings with the U.S. Securities and Exchange Commission or in materials incorporated therein by reference.

Any forward-looking statement in this release speaks only as of the date on which it is made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements.

Presentation of Information in this Press Release

In an effort to provide investors with additional information regarding the company's results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information, which management believes provides useful information to investors:

adjusting for currency (i.e., at constant currency); presenting operating (non-GAAP) earnings per share amounts and related income statement items; free cash flow; net cash from operating activities excluding IBM Financing receivables; adjusted EBITDA; adjusted EBITDA margin. The rationale for management's use of these non-GAAP measures is included in Exhibit 99.2 in the Form 8-K that includes this press release and is being submitted today to the SEC.

Conference Call and Webcast

IBM's regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. ET, today. The Webcast may be accessed via a link at https://www.ibm.com/investor/events/earnings-2q26. Presentation charts will be available shortly before the Webcast.

Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).

INTERNATIONAL BUSINESS MACHINES CORPORATION

COMPARATIVE FINANCIAL RESULTS

(Unaudited; $ in millions except per share amounts)

    Three Months Ended
June 30,

    Six Months Ended
June 30,

    2026

    2025

    2026

    2025

  REVENUE BY SEGMENT

                      Software

$        7,761

    $        7,387

    $       14,813

    $       13,722

  Consulting

5,327

    5,314

    10,599

    10,382

  Infrastructure

3,835

    4,142

    7,161

    7,027

  Financing

186

    166

    406

    357

  Other

52

    (31)

    100

    30

  TOTAL REVENUE

17,162

    16,977

    33,079

    31,519

                          GROSS PROFIT

9,907

    9,977

    18,857

    18,008

                          GROSS PROFIT MARGIN

                      Software

82.6

%

  83.9

%

  82.7

%

  83.7

%

Consulting

28.9

%

  27.5

%

  28.2

%

  27.4

%

Infrastructure

58.4

%

  61.5

%

  57.7

%

  57.9

%

Financing

42.5

%

  45.7

%

  43.0

%

  45.8

%

                        TOTAL GROSS PROFIT MARGIN

57.7

%

  58.8

%

  57.0

%

  57.1

%

                        EXPENSE AND OTHER INCOME

                      SG&A

4,981

    5,027

    10,071

    9,913

  R&D

2,311

    2,097

    4,485

    4,047

  Intellectual property and custom development income

(166)

    (215)

    (338)

    (468)

  Other (income) and expense

(185)

    (39)

    (186)

    (204)

  Interest expense

486

    510

    959

    965

  TOTAL EXPENSE AND OTHER INCOME

7,428

    7,380

    14,991

    14,253

                          INCOME FROM CONTINUING OPERATIONS

BEFORE INCOME TAXES

2,479

    2,597

    3,866

    3,755

  Pre-tax income margin

14.4

%

  15.3

%

  11.7

%

  11.9

%

Provision for/(benefit from) income taxes

313

    404

    484

    507

  Effective tax rate

12.6

%

  15.5

%

  12.5

%

  13.5

%

                        INCOME FROM CONTINUING OPERATIONS

$        2,166

    $        2,193

    $         3,382

    $         3,248

                          DISCONTINUED OPERATIONS

                      Income/(loss)  from discontinued operations, net of

taxes

(1)

    1

    (1)

    1

                          NET INCOME

$        2,165

    $        2,194

    $         3,381

    $         3,249

                          EARNINGS PER SHARE OF COMMON STOCK

                      Assuming dilution

                      Continuing operations

$          2.27

    $          2.31

    $           3.55

    $           3.43

  Discontinued operations

$          0.00

    $          0.00

    $           0.00

    $           0.00

  TOTAL

$          2.27

    $          2.31

    $           3.55

    $           3.43

                          Basic

                      Continuing operations

$          2.30

    $          2.36

    $           3.60

    $           3.49

  Discontinued operations

$          0.00

    $          0.00

    $           0.00

    $           0.00

  TOTAL

$          2.30

    $          2.36

    $           3.60

    $           3.50

                          WEIGHTED-AVERAGE NUMBER OF COMMON

SHARES OUTSTANDING (M's)

                      Assuming dilution

953.3

    948.0

    952.7

    946.7

  Basic

941.2

    930.8

    939.9

    929.4

  INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

  ($ in millions)

  At June 30,
2026

  At December 31,
2025

ASSETS:

        Current assets:

        Cash and cash equivalents

  $             7,172

  $              13,587

Restricted cash

  45

  54

Marketable securities

  960

  830

Notes and accounts receivable - trade, net

  6,044

  8,112

Short-term financing receivables

          Held for investment, net

  5,782

  7,344

  Held for sale

  874

  1,131

Other accounts receivable, net

  1,348

  1,052

Inventories

  1,746

  1,220

Deferred costs

  1,238

  1,084

Prepaid expenses and other current assets

  3,188

  2,530

Total current assets

  28,398

  36,944

          Property, plant and equipment, net

  5,736

  5,899

Operating right-of-use assets, net

  3,068

  3,129

Long-term financing receivables, net

  7,126

  7,708

Prepaid pension assets

  7,645

  7,544

Deferred costs

  835

  825

Deferred taxes

  8,709

  8,610

Goodwill

  74,599

  67,717

Intangibles, net

  13,955

  11,391

Investments and sundry assets

  2,028

  2,112

Total assets

  $          152,099

  $            151,880

          LIABILITIES:

        Current Liabilities:

        Taxes

  $              2,023

  $                2,347

Short-term debt

  5,775

  6,424

Accounts payable

  4,395

  4,756

Compensation and benefits

  3,364

  4,114

Deferred income

  16,160

  16,101

Operating lease liabilities

  770

  800

Other liabilities

  3,425

  4,116

Total current liabilities

  35,912

  38,658

          Long-term debt

  56,212

  54,836

Retirement-related obligations

  8,603

  9,018

Deferred income

  4,272

  4,271

Operating lease liabilities

  2,515

  2,547

Other liabilities

  10,044

  9,810

Total liabilities

  117,558

  119,139

          EQUITY:

        IBM stockholders' equity:

        Common stock

  64,600

  63,318

Retained earnings

  155,937

  155,648

Treasury stock - at cost

  (170,934)

  (170,605)

Accumulated other comprehensive income/(loss)

  (15,151)

  (15,713)

Total IBM stockholders' equity

  34,452

  32,648

          Noncontrolling interests

  89

  93

Total equity

  34,541

  32,740

          Total liabilities and equity

  $          152,099

  $            151,880

INTERNATIONAL BUSINESS MACHINES CORPORATION

STATEMENT OF CASH FLOWS

(Unaudited)

      Three Months Ended
June 30,

  Six Months Ended
June 30,

($ in millions)

  2026

  2025 (1)

  2026

  2025 (1)

Cash flows from operating activities:

                Net income

  $     2,165

  $     2,194

  $     3,381

  $     3,249

Adjustments to reconcile net income to cash provided by operating

activities:

                Depreciation (2)

  533

  578

  1,088

  1,114

Amortization of capitalized software and acquired intangible assets

  817

  687

  1,535

  1,328

Stock-based compensation

  498

  441

  1,004

  842

Net (gain)/loss on divestitures, asset sales and other

  (67)

  (18)

  (78)

  (40)

Changes in operating assets and liabilities, net of

acquisitions/divestitures

  (1,349)

  (2,180)

  836

  (421)

Net cash provided by operating activities

  2,597

  1,701

  7,766

  6,071

                  Cash flows from investing activities:

                Payments for property, plant and equipment

  (229)

  (209)

  (461)

  (454)

Proceeds from disposition of property, plant and equipment/other

  23

  37

  31

  111

Investment in software

  (154)

  (164)

  (313)

  (314)

Purchases of marketable securities and other investments

  (1,259)

  (1,255)

  (2,871)

  (7,740)

Proceeds from disposition of marketable securities and other

investments

  1,152

  4,036

  3,123

  4,962

Acquisition of businesses, net of cash acquired

  (15)

  (747)

  (10,480)

  (7,845)

Divestiture of businesses, net of cash transferred

  -

  -

  1

  (1)

Net cash provided by/(used in) investing activities

  (481)

  1,698

  (10,970)

  (11,281)

                  Cash flows from financing activities:

                Proceeds from new debt

  0

  7

  7,437

  8,385

Payments to settle debt

  (4,213)

  (1,308)

  (7,141)

  (2,565)

Short-term borrowings/(repayments) less than 90 days - net

  1

  0

  0

  (29)

Common stock repurchases for tax withholdings

  (116)

  (153)

  (465)

  (437)

Proceeds from issuance of shares

  240

  186

  418

  401

Financing - other

  (49)

  (22)

  (91)

  (54)

Cash dividends paid

  (1,590)

  (1,563)

  (3,166)

  (3,112)

Net cash provided by/(used in) financing activities

  (5,728)

  (2,855)

  (3,008)

  2,589

                  Effect of exchange rate changes on cash, cash equivalents and restricted

cash

  (35)

  320

  (211)

  487

Net change in cash, cash equivalents and restricted cash

  (3,646)

  865

  (6,423)

  (2,134)

                  Cash, cash equivalents and restricted cash at the beginning of the period

  10,864

  11,161

  13,640

  14,160

Cash, cash equivalents and restricted cash at the end of the period

  $     7,217

  $   12,026

  $     7,217

  $   12,026

_____________________

(1) Reclassified to align with the Consolidated Statement of Cash Flows presentation.

(2) Includes operating lease right-of-use assets amortization.

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

      Three Months Ended

June 30,

  Six Months Ended

June 30,

($ in billions)

  2026

2025

Yr/Yr

  2026

2025

Yr/Yr

Net income as reported (GAAP)

  $   2.2

$   2.2

$  0.0

  $   3.4

$   3.2

$  0.1

Less: income from discontinued operations, net of tax

  0.0

0.0

0.0

  0.0

0.0

0.0

Income from continuing operations

  2.2

2.2

0.0

  3.4

3.2

0.1

Provision for/(benefit from) income taxes from continuing ops.

  0.3

0.4

(0.1)

  0.5

0.5

0.0

Pre-tax income from continuing operations (GAAP)

  2.5

2.6

(0.1)

  3.9

3.8

0.1

Non-operating adjustments (before tax)

                Acquisition-related charges (1)

  0.7

0.6

0.1

  1.4

1.1

0.2

Non-operating retirement-related costs/(income)

  0.1

0.0

0.1

  0.2

0.0

0.1

                  Operating (non-GAAP) pre-tax income from continuing ops.

  3.3

3.2

0.1

  5.4

4.9

0.5

                  Net interest expense

  0.4

0.3

0.1

  0.7

0.6

0.1

Depreciation/amortization of non-acquired intangible assets

  0.7

0.7

0.0

  1.4

1.4

0.0

Stock-based compensation

  0.5

0.4

0.1

  1.0

0.8

0.2

Workforce rebalancing charges

  0.0

0.0

0.0

  0.4

0.3

0.0

Corporate (gains) and charges (2)

  (0.1)

0.0

(0.1)

  (0.1)

0.0

(0.1)

                  Adjusted EBITDA

  $   4.8

$   4.7

$  0.1

  $   8.8

$   8.1

$  0.7

                  Revenue

  $ 17.2

$ 17.0

1 %

  $ 33.1

$ 31.5

5 %

GAAP net income margin

  12.6 %

12.9 %

(0.3)pts

  10.2 %

10.3 %

(0.1)pts

Adjusted EBITDA margin

  27.8 %

27.6 %

0.2pts

  26.5 %

25.7 %

0.8pts

___________________

(1) Primarily consists of amortization of acquired intangible assets.

(2) Primarily consists of unique corporate actions such as gains on divestitures and asset sales.

INTERNATIONAL BUSINESS MACHINES CORPORATION

SEGMENT DATA

(Unaudited)

      Three Months Ended June 30, 2026

                            ($ in millions)

  Software

    Consulting

    Infrastructure

    Financing

  Revenue

  $          7,761

    $          5,327

    $           3,835

    $           186

  Segment profit

  $          2,502

    $             647

    $              835

    $           108

  Segment profit margin

  32.2

%

  12.1

%

  21.8

%

  58.0

%

Change YTY revenue

  5.1

%

  0.2

%

  (7.4)

%

  12.2

%

Change YTY revenue - constant currency

  4.6

%

  1.1

%

  (7.4)

%

  11.3

%

      Three Months Ended June 30, 2025

                            ($ in millions)

   Software

    Consulting

    Infrastructure

    Financing

  Revenue

  $          7,387

    $          5,314

    $           4,142

    $           166

  Segment profit

  $          2,296

    $             562

    $              965

    $           179

  Segment profit margin

  31.1

%

  10.6

%

  23.3

%

  107.9

%

      Six Months Ended June 30, 2026

                            (Dollars in Millions)

  Software

    Consulting

    Infrastructure

    Financing

  Revenue

  $        14,813

    $        10,599

    $           7,161

    $           406

  Segment Profit

  $          4,601

    $          1,205

    $           1,360

    $           226

  Segment Profit Margin

  31.1

%

  11.4

%

  19.0

%

  55.8

%

Change YTY Revenue

  7.9

%

  2.1

%

  1.9

%

  13.6

%

Change YTY Revenue - Constant Currency

  6.1

%

  1.0

%

  0.5

%

  10.7

%

      Six Months Ended June 30, 2025

                            (Dollars in Millions)

   Software

    Consulting

    Infrastructure

    Financing

  Revenue

  $        13,722

    $        10,382

    $           7,027

    $           357

  Segment Profit

  $          4,143

    $          1,121

    $           1,213

    $           248

  Segment Profit Margin

  30.2

%

  10.8

%

  17.3

%

  69.3

%

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; $ in millions except per share amounts)

    Three Months Ended June 30, 2026

    Continuing Operations

    GAAP

    Acquisition-

Related

Adjustments (1)

    Retirement-

Related

Adjustments (2)

    Tax

Reform

Impacts

    Operating

(Non-

GAAP)

  Gross profit

$  9,907

    $                    287

    $                    —

    $         —

    $       10,194

  Gross profit margin

57.7

%

  1.7

pts

  —

pts

  —

pts

  59.4

%

SG&A

$  4,981

    $                   (421)

    $                    —

    $         —

    $         4,560

  Other (income) & expense

(185)

    1

    (96)

    —

    (280)

  Total expense & other (income)

7,428

    (429)

    (96)

    —

    6,903

  Pre-tax income from continuing operations

2,479

    716

    96

    —

    3,290

  Pre-tax income margin from continuing

operations

14.4

%

  4.2

pts

  0.6

pts

  —

pts

  19.2

%

Provision for/(benefit from) income taxes (3)

$     313

    $                    167

    $                   20

    $          (2)

    $            498

  Effective tax rate

12.6

%

  2.3

pts

  0.2

pts

  (0.1)

pts

  15.1

%

Income from continuing operations

$  2,166

    $                    548

    $                   76

    $           2

    $         2,792

  Income margin from continuing operations

12.6

%

  3.2

pts

  0.4

pts

  0.0

pts

  16.3

%

Diluted earnings per share: continuing

operations

$    2.27

    $                   0.58

    $                0.08

    $      0.00

    $           2.93

      Three Months Ended June 30, 2025

    Continuing Operations

    GAAP

    Acquisition-

Related

Adjustments (1)

    Retirement-

Related

Adjustments (2)

    Tax

Reform

Impacts

    Operating

(Non-

GAAP)

  Gross profit

$  9,977

    $                    225

    $                    —

    $         —

    $       10,202

  Gross profit margin

58.8

%

  1.3

pts

  —

pts

  —

pts

  60.1

%

SG&A

$  5,027

    $                   (348)

    $                    —

    $         —

    $         4,679

  Other (income) & expense

(39)

    (1)

    (25)

    —

    (65)

  Total expense & other (income)

7,380

    (350)

    (25)

    —

    7,005

  Pre-tax income from continuing operations

2,597

    575

    25

    —

    3,197

  Pre-tax income margin from continuing

operations

15.3

%

  3.4

pts

  0.1

pts

  —

pts

  18.8

%

Provision for/(benefit from) income taxes (3)

$     404

    $                    132

    $                     9

    $         —

    $            545

  Effective tax rate

15.5

%

  1.3

pts

  0.2

pts

  —

pts

  17.0

%

Income from continuing operations

$  2,193

    $                    443

    $                   17

    $         —

    $         2,652

  Income margin from continuing operations

12.9

%

  2.6

pts

  0.1

pts

  —

pts

  15.6

%

Diluted earnings per share: continuing

operations

$    2.31

    $                   0.47

    $                0.02

    $         —

    $           2.80

  ____________________

(1) Includes amortization of acquired intangible assets and acquisition-related charges such as in-process research and development, transaction

      costs, applicable retention, restructuring and related expenses, tax charges related to acquisition integration, and pre-closing charges, such as

      financing costs.

(2) Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan

      curtailments/settlements and pension insolvency costs and other costs.

(3) The tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to

      the GAAP pre-tax income.

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; $ in millions except per share amounts)

        Six Months Ended June 30, 2026

    Continuing Operations

    GAAP

    Acquisition-

Related

Adjustments (1)

    Retirement-

Related

Adjustments (2)

  Tax

Reform

Impacts

    Operating

(Non-

GAAP)

  Gross Profit

$ 18,857

    $                  524

    $                    —

    $         —

    $   19,380

  Gross Profit Margin

57.0

%

  1.6

pts

  —

pts

  —

pts

  58.6

%

SG&A

$ 10,071

    $                (829)

    $                    —

    $         —

    $     9,242

  Other (Income) & Expense

(186)

    1

    (192)

    —

    (378)

  Total Expense & Other (Income)

14,991

    (838)

    (192)

    —

    13,961

  Pre-tax Income from Continuing Operations

3,866

    1,361

    192

    —

    5,419

  Pre-tax Income Margin from Continuing

Operations

11.7

%

  4.1

pts

  0.6

pts

  —

pts

  16.4

%

Provision for/(Benefit from) Income Taxes (3)

$      484

    $                 305

    $                   23

    $         (6)

    $        806

  Effective Tax Rate

12.5

%

  2.5

pts

  0.0

pts

  (0.1)

pts

  14.9

%

Income from Continuing Operations

$   3,382

    $              1,056

    $                 169

    $           6

    $     4,613

  Income Margin from Continuing Operations

10.2

%

  3.2

pts

  0.5

pts

  0.0

pts

  13.9

%

Diluted Earnings Per Share: Continuing

Operations

$     3.55

    $                1.11

    $                0.18

    $     0.01

    $       4.84

      Six Months Ended June 30, 2025

    Continuing Operations

    GAAP

    Acquisition-

Related

Adjustments (1)

    Retirement-

Related

Adjustments (2)

    Tax

Reform

Impacts

    Operating

(Non-

GAAP)

  Gross Profit

$ 18,008

    $                  426

    $                    —

    $         —

    $   18,434

  Gross Profit Margin

57.1

%

  1.4

pts

  —

pts

  —

pts

  58.5

%

SG&A

$   9,913

    $                (701)

    $                    —

    $         —

    $     9,212

  Other (Income) & Expense

(204)

    (1)

    (48)

    —

    (253)

  Total Expense & Other (Income)

14,253

    (706)

    (48)

    —

    13,499

  Pre-tax Income from Continuing Operations

3,755

    1,132

    48

    —

    4,935

  Pre-tax Income Margin from Continuing

Operations

11.9

%

  3.6

pts

  0.2

pts

  —

pts

  15.7

%

Provision for/(Benefit from) Income Taxes (3)

$      507

    $                 260

    $                    (3)

    $           2

    $        766

  Effective Tax Rate

13.5

%

  2.2

pts

  (0.2)

pts

  0.0

pts

  15.5

%

Income from Continuing Operations

$   3,248

    $                 872

    $                   51

    $         (2)

    $     4,169

  Income Margin from Continuing Operations

10.3

%

  2.8

pts

  0.2

pts

  0.0

pts

  13.2

%

Diluted Earnings Per Share: Continuing

Operations

$     3.43

    $                0.92

    $                0.05

    $     0.00

    $       4.40

  ____________________

(1) Includes amortization of acquired intangible assets, and acquisition-related charges such as in-process research and development, transaction

      costs, applicable retention, restructuring and related expenses, tax charges related to acquisition integration, and pre-closing charges, such as

      financing costs.

(2) Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan

      curtailments/settlements and pension insolvency costs and other costs.

(3) The tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to

      the GAAP pre-tax income.

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO FREE CASH FLOW RECONCILIATION

(Unaudited)

      Three Months Ended
June 30,

  Six Months Ended
June 30,

($ in millions)

  2026

  2025

  2026

  2025

Net cash provided by operating activities per GAAP

  $     2,597

  $     1,701

  $     7,766

  $     6,071

                  Less: change in IBM Financing receivables

  (302)

  (1,480)

  2,264

  606

                  Net cash from operating activities excl. IBM Financing receivables

  2,899

  3,182

  5,503

  5,465

                  Capital expenditures, net

  (359)

  (336)

  (743)

  (657)

                  Free cash flow

  $     2,540

  $     2,845

  $     4,760

  $     4,808

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

      Three Months Ended
June 30,

  Six Months Ended
June 30,

($ in billions)

  2026

  2025

  2026

  2025

Net cash provided by operating activities

  $   2.6

  $   1.7

  $   7.8

  $   6.1

                  Add:

                Net interest expense

  0.4

  0.3

  0.7

  0.6

Provision for/(benefit from) income taxes from continuing operations

  0.3

  0.4

  0.5

  0.5

                  Less change in:

                Financing receivables

  (0.3)

  (1.5)

  2.3

  0.6

Net (gain)/loss on divestitures, assets sales and other (1)

  (0.1)

  0.0

  (0.1)

  0.0

Other assets and liabilities/other, net (1,2)

  (1.1)

  (0.7)

  (2.0)

  (1.5)

                  Adjusted EBITDA

  $   4.8

  $   4.7

  $   8.8

  $   8.1

                  Revenue

  $ 17.2

  $ 17.0

  $ 33.1

  $ 31.5

Net cash provided by operating activities margin

  15.1 %

  10.0 %

  23.5 %

  19.3 %

Adjusted EBITDA margin

  27.8 %

  27.6 %

  26.5 %

  25.7 %

____________________

(1) Reclassified to align with the presentation of similar line items in the Statement of Cash Flows.

(2) Mainly consists of Changes in operating assets and liabilities, net of acquisitions/divestitures in the Statement of Cash Flows chart,

      workforce rebalancing charges, non-operating impacts, and corporate (gains) and charges, less the change in Financing receivables.

SOURCE IBM

International Business Machines Corporation (NYSE:IBM) will release its second quarter earnings report after the closing bell on Wednesday, July 22.

Analysts expect the Armonk, New York-based company to report quarterly earnings of $2.92 per share, up from $2.80 per share in the year-ago period. The consensus estimate for IBM’s quarterly revenue is $17.33 billion. It reported $16.98 billion last year, according to Benzinga Pro.

On July 14, the company said it expects second-quarter revenue of $17.2 billion, up 1% from a year earlier but below the Wall Street consensus estimate of $17.86 billion.

IBM shares fell 1.2% to close at $210.50 on Tuesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying IBM stock? Here’s what analysts think:

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Key Takeaways IBM's Consulting revenues are estimated at $5.4B, up from $5.31B in the year-ago quarter.IBM's Google Cloud partnership may support AI adoption, modernization and consulting revenues.IBM Autonomous Security uses AI agents to automate threat response and reduce operational friction. International Business Machines Corporation (IBM - Free Report) is scheduled to report second-quarter 2026 earnings after the closing bell on July 22. In the to-be-reported quarter, the company is likely to have recorded higher revenues from the Consulting segment, backed by rising demand for technology consulting and business transformation services.

Factors at PlayThe Consulting segment comprises Strategy and Technology (previously reported as Business Transformation and Technology Consulting) and Intelligent Operations (previously reported as Application Operations). It provides consulting and application management services that offer value and innovation to clients by leveraging industry, technology and business strategy and process know-how.

During the to-be-reported quarter, IBM partnered with Google Cloud to help businesses adopt AI faster and modernize their technology systems. The deal creates a new Google Cloud Practice within IBM Consulting, combining IBM’s industry expertise and AI-powered IBM Consulting Advantage platform with Google Cloud’s Gemini Enterprise AI platform. The collaboration strengthens the company’s expertise in cybersecurity, data management and cloud infrastructure. By integrating Google Cloud’s Gemini AI capabilities with its watsonx platform and using technologies such as Red Hat OpenShift, HashiCorp, Apptio, BigQuery and Confluent, IBM aims to help businesses improve automation, gain deeper data insights and enhance operational efficiency. These are likely to have generated additional revenues for the Consulting segment.

In the second quarter, the company launched IBM Autonomous Security, a multi-agent-powered service with interoperable, vendor-agnostic digital workers that operate across an organization's entire security operations for coordinated decision-making, response and intelligence at machine speed. This has helped business enterprises reduce operational friction and improve resiliency while strengthening compliance outcomes.

Leveraging coordinated AI agents, IBM Autonomous Security helps to analyze potential exploit paths to enforce security policies across the applicable security tools and contain threats with minimal human intervention. Offering deep visibility into security gaps, policy weaknesses and AI-specific exposures, it helps to reduce exposure windows and accelerate containment of high-velocity attacks. This will help to provide a holistic and integrative threat management approach to help security analysts better comprehend critical threats. In addition, it will reduce manual investigations and operational tasks with auto-recommend actions based on the historical patterns of analyzed activity and pre-set confidence levels. This, in turn, will help to effectively mitigate multi-dimensional cyber threats that have become rampant over time.

Overall ExpectationsThe Zacks Consensus Estimate for Consulting revenues is pegged at $5.4 billion, indicating an improvement from $5.31 billion in the year-ago quarter.

The Zacks Consensus Estimate for total revenues for the company is pegged at $17.59 billion. It generated revenues of $16.98 billion in the prior-year quarter. The consensus mark for earnings is currently pegged at $3.00 per share, indicating growth from $2.8 in the year-earlier quarter.

Earnings WhispersOur proven model does not conclusively predict an earnings beat for IBM for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

IBM currently has an ESP of -0.76% with a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to ConsiderHere are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Pinterest, Inc. (PINS - Free Report) is set to release quarterly numbers on Aug. 4. It has an Earnings ESP of +1.65% and carries a Zacks Rank #3.

The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +0.84% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Aug. 4.

The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +7.68% and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on July 29.

HomeEarnings AnalysisTech 

SummaryWhen IBM reports their actual Q2 ’26 results Wednesday night, July 22nd after the closing bell, analyst consensus has lowered expectations after the negative IBM pre-announcement last week that dropped the stock 25% during the trading day.The consensus revenue estimate was $17.7 billion but is now $16.9 billion. The consensus EPS estimate was $3.00 but is now $2.88.IBM management has given off a lot of mixed signals, mostly on AI, where they withdrew their AI guidance on the April ’26 call by effectively not updating the AI book even though AI metrics were given on the previous three conference calls, which showed the AI book was growing. Getty Images

Since IBM broke out to an all-time high (above the April 2013 high of $215-216 per share), the stock has been range-bound between $200 at the low end and $325-335 at the high end of the trading range. The peak price prints, or all-time

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It's never good when a CEO admits, "This quarter we faltered." But that's the situation facing International Business Machines (IBM +3.87%) this week, as CEO Arvind Krishna made the rare acknowledgment in a letter to shareholders.

Krishna's acknowledgment came as IBM issued preliminary earnings results for the second quarter, warning that sales were lower than anticipated as customers shifted spending away from IBM and into memory and storage products ahead of anticipated price increases. "These conditions require our teams to execute perfectly, and this quarter we faltered," he wrote. "We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall."

IBM stock tumbled 25% -- the worst day in its 115-year history -- and is now down 26% so far in 2026.

Image source: Getty Images.

But remember, IBM stock had been on the rise before this week's disaster; shares were up 35% in 2025 on the strength of its mainframe and server business. It's also a reliable dividend stock, with a 3.1% yield that's far above average for tech stocks, and has increased the dividend for 31 consecutive years.

Is IBM's earnings miss an anomaly? Perhaps this is an opportunity to pick up deeply discounted shares.

The case for buying IBM in 2026 As Krishna points out, the biggest problem for IBM right now is that customers are diverting money from the company to storage and memory products. Data centers require ample DRAM and NAND storage, and manufacturers like Micron Technology are reaping the benefits.

However, I see this as a short-term problem. The DRAM and NAND supply is expected to remain tight through the second half of this year, but eventually the supply-demand balance will correct itself.

Today's Change

(

3.87

%) $

8.17

Current Price

$

219.37

IBM is rolling out its new z17 mainframes, powered by Telum II processors and Spyre Accelerator chips, to process AI workloads. The z17 allows customers to run AI on the platform alongside their enterprise data, rather than transferring it to the cloud for inference. I expect the z17 to eventually be a significant driver for IBM, even though market conditions are causing revenue to be down this quarter.

Also, IBM is a top company in the growth of quantum computing. It's on track to deliver the first large-scale fault-tolerant quantum computer by 2029, and plans to invest more than $10 billion in quantum computing in the next five years.

IBM is still projecting $17.2 billion in revenue for the second quarter and year-to-date free cash flow of $4.8 billion when it reports final numbers on July 22. However, I'll be watching to see if management adjusts its full-year guidance of 5% revenue growth and free cash flow of $15.7 billion. If it can maintain that guidance, then I feel really good about IBM in the second half of the year, and would expect shares of this top dividend stock to begin a steady recovery.

New IBM Power Autonomous Operations software identifies and resolves capacity constraints up to 15x1 faster than manually performing the operation IBM Bob™ Premium Package for i helps accelerate application development on IBM i Entry-level Power S1112 server helps enterprises innovate at every scale , /PRNewswire/ -- IBM (NYSE: IBM) today announced IBM Power Autonomous Operations, an AI agent that can help continuously monitor Power systems and autonomously resolve issues to keep operations running smoothly. It complements the recently launched IBM Bob™ Premium Package for i, which brings agentic-driven software designed to accelerate application development on IBM i. These capabilities can accelerate building modern applications so enterprises can innovate at the pace required by their business. Additionally, the entry-level Power S1112 server provides a new compact, efficient option powerful enough to run AI inference locally.

IBM Power S1112, a 1-socket, half-wide Power11 server. (Image credit: Thomas Prior for IBM)

IBM PowerS1112, tower chassis form factor. (Image credit: Thomas Prior for IBM) IBM Power has long been IBM's platform for mission-critical enterprise workloads. As AI becomes part of that critical infrastructure, Power is built to support it.  IBM introduced Power11 last year as autonomous IT for the AI era, built for availability, resiliency, and scale across on-premises and IBM Cloud environments. IBM Power Virtual Server is a fully managed cloud service on which enterprises can run AIX, IBM i and Linux workloads while offloading much of the routine management for system operations. Now, IBM is embedding autonomous IT across the Power platform, from code to runtime, with new capabilities and systems.

According to the IBM IBV 2026 Tech Leader Study: Building the IT foundation for agentic AI at scale, by 2027, enterprises expect to deploy an average of 1,661 AI agents—a 38% increase. At that rate, tech leaders are tasked with managing hundreds of thousands of autonomous decisions daily. And manual governance can't keep up with that math.2 Additionally, according to the IBM Institute for Business Value, Enterprise 2030 study, AI is changing what companies do and how they do it.3 Closing that gap in scale requires an IT foundation that can run and optimize itself while teams focus on innovation.

These newly announced capabilities utilize AI agents to build automation directly into IBM Power across operations, security, and application development so clients can innovate with AI while prioritizing control and resilience. Power Autonomous Operations automates running and optimizing systems, with an embedded agent that lets teams manage Power through simple chat-style prompts. IBM Bob Premium Package for i makes IBM i development accessible to a broad range of engineers, expanding who can build and modernize their applications on the platform.

"Enterprises should not need to choose between moving at the speed of AI and keeping their systems stable and secure," said Hillery Hunter, General Manager for IBM Power and CTO, IBM Infrastructure. "We're making Power increasingly self-operating, so the routine work of helping to keep systems available, optimized, and secured can happen autonomously, and our clients' teams can spend their time on innovation instead of upkeep. That's how a business scales AI with control and resilience."

IBM Power S1112: Extending the Capabilities of Power Servers

As enterprises push AI workloads beyond the data center, the IBM Power S1112 is a new one-socket Power11 system built for compact on-prem deployment. The S1112 runs AI workloads locally using Power11 on-chip Matrix Math Acceleration (MMA) for faster inferencing. Power S1112 offers 2x better core performance versus Power S9144 and 3x better core performance versus Power S8145  — with up to 69% greater energy efficiency than the S9146.

To provide clients with the right level of support for this new system, IBM Technology Lifecycle Services is introducing IBM Power Expert Care Premium Essentials, a new incident-focused support tier available exclusively for the Power S1112. Premium Essentials delivers priority access to IBM experts, accelerated response, and intelligent support automation.

IBM Power Autonomous Operations: Managing Infrastructure Through Conversation

IBM Power Autonomous Operations resolves capacity constraint issues up to 15x faster than manual intervention7. Today's enterprise systems can seem to demand constant attention, but manual operations management can make it difficult to manage. IBM Power Autonomous Operations redefines this model by automating and optimizing day-to-day operations across the IBM Power environment. An embedded AI agent that enables natural, conversational interaction can help teams to manage, tune, and streamline their environments without relying on deep domain expertise for every task. The result is a resilient, self-optimizing infrastructure architected to reduce operational burden while accelerating performance and uptime.

IBM Bob Premium Package for i: Making IBM i Development Accessible to More Engineers

IBM i is a fully integrated operating system that remains a vital part of the core business of many companies across major industries, yet modernizing IBM i applications has historically required specialized skills for RPG applications. To help address this challenge, IBM Bob is an AI-powered development assistant that offers an agentic SDLC experience for enterprise developers.

IBM Bob Premium Package for i is engineered to provide built-in support for IBM i conventions and patterns across the full development lifecycle, to help engineers make changes faster, onboard sooner, and evolve applications while prioritizing team capacity along the way. From understanding complex code to moving modernization and AI projects forward, IBM Bob can expand the pool of developers who improve the IBM i applications that organizations depend on every day. Early adopters are already seeing results: Heartland Co-Op estimates 60% faster time for new-to-platform developers to understand complex applications.8

Client Momentum

Clients and partners are already running IBM Power on premises and in the cloud, drawn by its performance, resilience, and hybrid flexibility:

"For a business like ours, reliability and simplicity matter because our customers depend on us every day. IBM Power and IBM i have consistently delivered the stability and security we need to support our operations with confidence. And that continues with the introduction of IBM Bob and the IBM Power S1112. What excites me most about the new Power S1112 is the ability to do more with less through increased capacity, energy efficiency, and the growing focus IBM has on automation, making systems easier to manage for small and midsized businesses. We are also excited about how IBM Bob for IBM i can help our team accelerate modernization by quickly interpreting older RPG code, tracing field logic, generating documentation, and making decades of system knowledge easier to understand and act on. Together, IBM Power, IBM i, and IBM Bob give us a forward-looking foundation to modernize with confidence while continuing to deliver the reliability our business depends on." Jasmine Kaczmarek, vice president of technology, M.R. Williams.

"What I noticed about IBM Bob almost immediately was the level of detail provided as compared to other AIs. I like using AI to build and execute plans for specific projects. Given the exact same prompt, Bob's planning was always 10-fold more detailed than other AIs. More specifics, more details, and provided a better understanding of the steps through the project from beginning to end." Bob Richardson, ERP Support Analyst, Wynne Systems, Inc.

"The new IBM Power S1112 provides us with the flexibility to expand beyond traditional workloads and explore new AI opportunities by running Linux partitions alongside our IBM i environment," said Andy Buchholtz, Owner, Innovative Software Solutions. "Combining that flexibility with the security, reliability, and resilience we trust from the IBM Power platform gives us confidence as we continue to innovate and modernize our business."

"We're no longer reacting to weather. We're prepared for it," said Chad Simpson, CIO, City Home. "Our infrastructure is built to keep the business running, no matter what. We've honed our process to perform role swaps every quarter, and this capability gives us great confidence in our business continuity posture. It's a powerful thing, and it's all thanks to IBM Cloud and Power Virtual Server."

Availability

IBM Power S1112 is expected to be generally available on July 24, 2026, IBM Power Autonomous Operations is expected to be generally available on September 23, 2026, and IBM Bob Premium Package for i was made generally available on June 24, 2026. To learn more, visit ibm.com/power.

Statements regarding IBM's future direction and intent are subject to change or withdrawal without notice and represent goals and objectives only.

About IBM

IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service.

Additional Sources

Power S1112 and autonomous IT capabilities blog IBM Power S1112 product page  IBM Institute for Business Value Enterprise 2030 study  Media contact:

Sarah Fraser
IBM Infrastructure Communications
[email protected]

1 Disclaimer 1: The performance and capacity management efficiency claim is based on IBM internal testing conducted in a controlled, representative IBM Power infrastructure environment consisting of eleven IBM Power systems. Capacity thresholds and alerting policies were preconfigured prior to test execution. Under this configuration, the manual operational process entailed—navigating to the performance dashboard for each system, exporting performance data to CSV/XLS format, reviewing and analyzing the data to identify required capacity adjustments, and implementing the changes—required on average 52.59 minutes to detect and resolve capacity‑related conditions across the eleven systems. In a comparable scenario, IBM Power Autonomous Operations, which includes alert ingestion and AI-based, agent-driven diagnostic analysis producing recommended and remedial actions with human-in-the-loop approval to remediate, completed the same process in on average 3.33 minutes.
2 https://www.ibm.com/thought-leadership/institute-business-value/en-us/c-suite-study/cxo
3 https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/enterprise-2030
4 Based on published CPW results comparing Power S1112/4 core to IBM Power S914/4 core. Valid as of 7/14/2026 and available at: https://www.ibm.com/downloads/documents/us-en/10c31775c5d40fed
5 Based on published CPW results comparing Power S1112/4 core to IBM Power S814/4 core. Valid as of 7/14/2026 and available at: https://www.ibm.com/downloads/documents/us-en/10c31775c5d40fed
6 Based on system capability of Power S1112/10c performance 291,300E CPW (extrapolated from 116,500 CPW for 4-cores) @ 540E Watts (539 Performance/Watt) compared to Power S914/8cperformance of 122,500 CPW @ 383 Watts (319 Performance/Watt); 539 / 319 = 1.69 more Performance/Watt
7 Disclaimer 1: The performance and capacity management efficiency claim is based on IBM internal testing conducted in a controlled, representative IBM Power infrastructure environment consisting of eleven IBM Power systems. Capacity thresholds and alerting policies were preconfigured prior to test execution. Under this configuration, the manual operational process entailed—navigating to the performance dashboard for each system, exporting performance data to CSV/XLS format, reviewing and analyzing the data to identify required capacity adjustments, and implementing the changes—required on average 52.59 minutes to detect and resolve capacity‑related conditions across the eleven systems. In a comparable scenario, IBM Power Autonomous Operations, which includes alert ingestion and AI-based, agent-driven diagnostic analysis producing recommended and remedial actions with human-in-the-loop approval to remediate, completed the same process in on average 3.33 minutes.
8 Heartland Co-op Modernizes Grain Operations with IBM i and IBM Bob

SOURCE IBM

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CEO Arvind Krishna wrote a letter to shareholders eight days before the company was supposed to release its quarterly earnings. Mandel NGAN / AFP via Getty Images IBM is on pace to have its worst day ever on the stock market after saying it misread the AI spending boom.

On Tuesday, eight days before the company's scheduled earnings call, CEO Arvind Krishna released a letter to shareholders that detailed a quarterly "performance shortfall," including slimmer-than-expected revenue.

"While we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization," he wrote. "In addition, clients were distracted with rapidly-evolving, industry-wide cybersecurity concerns in the quarter."

The warning quickly revived talk of a SaaSpocalypse — the fear that AI will erode the value of some traditional software companies. For months, investors have worried that businesses will need fewer software subscriptions as AI agents automate and build custom tools.

IBM is not a pure software-as-a-service company, and Krishna did not say AI had made its products obsolete. Instead, he said customers redirected spending toward increasingly expensive servers, storage, and memory — leaving less money available for some of IBM's software and consulting services.

The shortfall is still touching a nerve among industry bigwigs. Companies are pouring money into the infrastructure needed to power AI, while investors increasingly question how much of that spending will ultimately flow to established software providers.

Here is what smart voices in business and tech are saying about the early announcement's impact on the economy:

Chamath Palihapitiya — CEO at 8090 and Social Capital

8090 CEO Chamath Palihapitiya.  Jesse Grant/The Hollywood Reporter via Getty Images Chamath Palihapitiya said IBM's stumble reflects a much bigger problem facing the AI industry: Companies selling intelligence are making enormous sums, but it's unclear whether their customers can turn those costs into profits of their own.

"The downstream ecosystem has to make money as well," Palihapitiya said Tuesday when asked about Krishna's letter on CNBC. "And then, the ultimate buyer of these tokens also has to make money."

He stopped short of blaming IBM's problems on its pivot to AI and cloud computing, and praised Krishna for repositioning the company.

Palihapitiya was less forgiving of IBM's suggestion that rapidly evolving cybersecurity concerns distracted some customers during the quarter.

He said AI companies and their investors have repeatedly swung between extremes: describing the technology as an all-powerful breakthrough when raising money, then warning that it poses an existential threat when seeking regulation.

Jacob Bourne — Analyst at EMARKETERBourne told Business Insider in an email that IBM was hit with a "triple whammy."

He said the AI buildout is directing corporate spending toward hardware rather than software and services. At the same time, investors are punishing legacy companies that appear to be falling behind. Finally, AI-native challengers such as Anthropic are putting additional pressure on traditional software business models.

"We can expect more quarters like this one, but I think it's a disruption story, not necessarily an extinction one for legacy software companies," he wrote. "Spending patterns will shift from the present focus, and the vendors that adapt their products to the changing market will stay competitive."

Nicholas Mugalli — CEO and Principal at World Trade Securities

An IBM logo on a screen.  NYSE Mugalli wrote on X that he believes IBM is the first major casualty of a broader shift in enterprise spending.

He argued that IBM's miss shows the limits of corporate budgets. As hardware became scarcer and more expensive, executives prioritized servers, storage, and memory over software deals that could be delayed.

"This is the SaaS reckoning arriving exactly the way it would," Mugalli wrote, "not with cancellations, but with deprioritization. "

Mugalli predicted IBM would not be the last enterprise software company to feel that pressure, pointing specifically to Palantir and ServiceNow.

Dan Niles — founder of Niles Investment ManagementNiles wrote on X that IBM's warning was an example of the AI "speed bump" he has been expecting.

He also said that customers redirected spending toward AI late in the quarter, cutting into IBM's mainframe and related software business. He said that much of that revenue is supposed to be recurring, making the shortfall more concerning.

"Given software is a back-end loaded business, I doubt this is the last casualty," he wrote.

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Ben Shimkus You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Ben Shimkus is a reporter for the Business News desk. He writes about cars, transportation, retail, and jobs. Ben's reporting has appeared in Rolling Stone, The Verge, Automotive News, USA Today, AutoBody News, LGBTQ Nation, TopSpeed, and Out Magazine. He's also held staff writing positions at The U.S. Sun and the Daily Mail. He graduated from NYU with a Master's in journalism in 2024. Email Ben at [email protected] or message him privately on Signal at bshimkus.41. 

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