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IBM (IBM - Free Report) ended the recent trading session at $226.61, demonstrating a +2.77% change from the preceding day's closing price. This change outpaced the S&P 500's 0.47% loss on the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 1.25%.
Prior to today's trading, shares of the technology and consulting company had lost 8.1% lagged the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of IBM in its upcoming release. The company plans to announce its earnings on October 21, 2026. The company's upcoming EPS is projected at $2.89, signifying a 9.06% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $16.82 billion, reflecting a 3.02% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.33 per share and revenue of $70.39 billion. These totals would mark changes of +6.38% and +4.22%, respectively, from last year.
Any recent changes to analyst estimates for IBM should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. IBM is currently a Zacks Rank #4 (Sell).
In terms of valuation, IBM is presently being traded at a Forward P/E ratio of 17.89. For comparison, its industry has an average Forward P/E of 20.65, which means IBM is trading at a discount to the group.
Investors should also note that IBM has a PEG ratio of 2.1 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 0.56.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Why the Market Dipped But IBM (IBM) Gained Today
IBM (IBM - Free Report) ended the recent trading session at $226.61, demonstrating a +2.77% change from the preceding day's closing price. This change outpaced the S&P 500's 0.47% loss on the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 1.25%.
Prior to today's trading, shares of the technology and consulting company had lost 8.1% lagged the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of IBM in its upcoming release. The company plans to announce its earnings on October 21, 2026. The company's upcoming EPS is projected at $2.89, signifying a 9.06% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $16.82 billion, reflecting a 3.02% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.33 per share and revenue of $70.39 billion. These totals would mark changes of +6.38% and +4.22%, respectively, from last year.
Any recent changes to analyst estimates for IBM should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. IBM is currently a Zacks Rank #4 (Sell).
In terms of valuation, IBM is presently being traded at a Forward P/E ratio of 17.89. For comparison, its industry has an average Forward P/E of 20.65, which means IBM is trading at a discount to the group.
Investors should also note that IBM has a PEG ratio of 2.1 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 0.56.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.