International Business Machines (IBM.US) Price Target 2026/2027: 10% Upside + 3.0% Dividend

221.39
Price history for International Business Machines (IBM.US) – stock price at $221.39, October 2026
International Business Machines stock price – price development 2026. Updated Oct 7, 2026.
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International Business Machines Price Target 2026: Analysts See 9% Upside

The average price target for International Business Machines is $240.59. This price target represents the analysts' view of the stock price over the next 12 months. The stock may be undervalued, because the price target is higher than the current price. The stock is 8.67% below the target, which can point to potential returns within the next 12 months if the analysts' view proves right. Also consider the stock's valuation ratios such as P/E, P/S and P/B, plus the technical analysis further down the page, for the full picture.

Is International Business Machines overvalued or undervalued?

International Business Machines is currently fairly valued with a gap of 8.7% relative to the price target.


The current price is $221.39, which places International Business Machines in the fairly valued category. The stock is considered undervalued when the price is below $216.53, and overvalued when the price exceeds $264.65.


The fair value range is defined as ±10% of the price target, because price targets are estimates rather than exact values. For International Business Machines, the fair value range lies between $216.53 and $264.65.


See the full price target analysis for International Business Machines →

Analyst Ratings for International Business Machines stock in 2026: Buy

22 analysts cover International Business Machines. The ratings are mixed, with 45.5% Buy, 36.4% Hold and 18.2% Sell. The average price target is $240.59, which gives an upside of 8.7% from the current price.

Consensus: Buy (3.55/5)
Strong Buy
8 (36.4%)
Buy
2 (9.1%)
Hold
8 (36.4%)
Sell
2 (9.1%)
Strong Sell
2 (9.1%)
Strong Sell Sell Hold Buy Strong Buy
3.55 out of 5 based on 22 analysts

About International Business Machines – Information Technology Services

IBM (International Business Machines Corporation) sells IT solutions and services to businesses around the world. It makes money in four main areas: software, consulting, infrastructure (hardware), and financing.

**How it makes money**

IBM's biggest focus is software, especially "hybrid cloud" platforms. Hybrid cloud means a company can store and run its data partly on its own computers and partly on rented computer power over the internet, mixing both as needed. IBM's best-known product in this area is Red Hat, which provides open-source software (software with publicly shared code) to businesses. IBM also sells specialized software for data analysis, artificial intelligence (AI), and cybersecurity.

The consulting part of the business helps companies change how they operate. This includes advising on business strategy and connecting different computer systems together (called systems integration).

The infrastructure part covers IBM's physical computer equipment (hardware) and the support services that go with it.

There is also a financing arm, which helps customers pay for IBM's products and services over time.

**Markets and customers**

IBM operates globally, serving businesses and organizations in many countries.

**Background**

IBM was founded in 1911 and has grown into a company with a global presence.
Read more about the company

Key Figures for International Business Machines

$208B Market cap
$69.1B Revenue
Information Technology Services Industry
20.04 P/E
3.01 P/S
6.33 P/B
United States Listed on exchange
ibm.com Website

What kind of stock is International Business Machines?

Dividend stock

International Business Machines is classified as a dividend stock with a dividend of 3.0% and a payout ratio of 56%, which points to a sustainable dividend level.

Score Overview for International Business Machines

💰 Value Score 52/100 (Neutral)
⭐ Quality Score 47/100 (Neutral)
🚀 Momentum Score 33/100 (Low)
📊 Total Score 44/100

⚠️ 1 red flag identified 1 critical

Our analysis has identified 1 potential risk factor in International Business Machines that investors should be aware of.

🚨 High debt: The debt-to-equity ratio is 402% – the company carries considerably more debt than equity, which raises the financial risk.

📈 Valuation

International Business Machines trades at a P/E ratio of 20.0, which is close to the market average. The forward P/E is 17.4 (13% lower), which suggests the market expects rising earnings. The P/S ratio is 3.0. The P/B ratio is 6.3. The PEG ratio is 2.19 — above 2.0 suggests the stock is expensive relative to its growth rate.

💵 Profitability & Growth

International Business Machines has a profit margin of 15.5% (solid) and an operating margin of 16.6%. Return on equity (ROE) is 34.5% — excellent return on equity. Return on assets (ROA) is 5.3%. The latest quarterly earnings grew -1.8% year over year — falling earnings.

🏦 Financial Health

The Piotroski score is 5 out of 9 — average financial health. Altman Z2 is 3.87 (healthy balance sheet — low risk). The debt-to-equity ratio (D/E) is 402.0% — high debt, which raises the risk.

🚀 Momentum & Short Interest

Short interest is 2.65%.

International Business Machines Dividend 2026: 3.0% Dividend Yield

Dividend Key Figures for International Business Machines

Dividend yield
2.98%
Latest dividend per share
1.69 USD
Payout ratio
56.1%
Healthy
Dividend growth (6 years)
-18.8%
Avg. annual dividend (3 years)
5.03 USD

When does International Business Machines pay a dividend in 2026?

Latest ex-dividend date (traded without the dividend)
August 10, 2026
Latest payment date
September 10, 2026

How much does International Business Machines pay in dividends?

International Business Machines pays dividends to its shareholders. The most recently paid dividend was 1.69 USD per share, which corresponds to a dividend yield of 2.98%. Over the last 6 years, the annual dividend has fallen by 18.8%.

The payout ratio is 56.1%, which is considered healthy and sustainable. The company balances rewarding shareholders with reinvesting in growth.

Historical Dividend Payments for International Business Machines

We have registered dividend payments for International Business Machines since Feb 7, 2020. In that period the stock has paid a dividend 25 times, most recently on Aug 10, 2026. This stock qualifies as a stable dividend stock, because it has paid a dividend at least once a year for the last 5 years. That makes it attractive to investors looking for steady, regular dividend payments.

Ex-datePayment dateAmountCurrency
2026-08-102026-09-101.69USD
2026-05-082026-06-101.69USD
2026-02-102026-03-101.68USD
2025-11-102025-12-101.68USD
2025-05-092025-06-101.68USD
2024-11-122024-12-101.67USD
2024-08-092024-09-101.67USD
2024-05-092024-06-101.67USD
2024-02-082024-03-091.66USD
2023-11-092023-12-091.66USD
2023-08-092023-09-091.66USD
2023-05-092023-06-101.66USD
2023-02-092023-03-101.65USD
2022-11-092022-12-101.65USD
2022-08-092022-09-101.65USD
2022-05-092022-06-101.65USD
2022-02-102022-03-101.64USD
2021-11-092021-12-101.64USD
2021-08-092021-09-101.57USD
2021-05-072021-06-101.57USD
2021-02-092021-03-101.56USD
2020-11-092020-12-101.56USD
2020-08-072020-09-101.56USD
2020-05-072020-06-101.56USD
2020-02-072020-03-101.55USD

Insider Trading in International Business Machines 2026: The Signal Is negative

In 2026, insiders at International Business Machines have made 20 transactions – split into 12 purchases and 8 sales. On a net basis, insiders took $22,863,041 out of the stock. Active insiders include Miebach Michael, Michelle J Howard, Michael Miebach and others. In the short term (last 3 months), the insider signal is negative.

Short-Term Signal (3 months): Negative

Insiders have exclusively sold shares over the last 3 months.

Over the last 3 months: 0 purchases and 1 sales. A net $5,758,000 out of the stock.

Long-Term Signal (all transactions): Mostly negative

Insiders have sold considerably more than they have bought. At large companies this can be due to planned sales (10b5-1 plans) and is not necessarily a negative signal.

Across the last 20 transactions: 12 purchases and 8 sales. A net $22,863,041 out of the stock.

Latest purchase: Miebach Michael bought 434 shares at $233.33 each on 2026-02-25. The stock has since fallen 5.2%.

Latest sale: Thomas Robert David sold 25,000 shares at $230.32 each on 2026-08-26.

Who is buying: Miebach Michael, Michelle J Howard, Michael Miebach, HOWARD MICHELLE J, FARR DAVID N and others.

Who is selling: Thomas Robert David, Robert David Thomas, Nickle Jaclyn Lamoreaux, LAMOREAUX NICKLE JACLYN, BROWDY MICHELLE H and others.

Latest Insider Trades in International Business Machines (2026)

The table shows the last 20 reported insider transactions in International Business Machines. Green rows are purchases, red rows are sales. The data is based on official filings.

Transaction date Name Type Number of shares Price per share ($) Total amount ($)
2026-08-26 Thomas Robert David Sell 25,000 230 5,758,000
2026-02-25 Miebach Michael Buy 434 233 101,265
2026-02-25 Michelle J Howard Buy 50 238 11,892
2026-02-25 Michael Miebach Buy 434 233 101,265
2026-02-25 HOWARD MICHELLE J Buy 50 238 11,892
2026-01-30 FARR DAVID N Buy 1,000 304 304,000
2026-01-30 David N Farr Buy 1,000 304 304,000
2025-03-03 Thomas Robert David Sell 26,543 253 6,715,644
2025-03-03 Robert David Thomas Sell 26,543 253 6,715,644
2025-02-28 FARR DAVID N Buy 1,200 249 298,800

Who is buying and selling International Business Machines shares in 2026?

The following insiders have bought shares in International Business Machines: Miebach Michael, Michelle J Howard, Michael Miebach, HOWARD MICHELLE J, FARR DAVID N and others. In total, $1,971,829 was bought across 12 transactions. The following insiders have sold shares: Thomas Robert David, Robert David Thomas, Nickle Jaclyn Lamoreaux, LAMOREAUX NICKLE JACLYN, BROWDY MICHELLE H and others. In total, $24,834,871 was sold across 8 transactions. Insider trades are legal transactions in which executives and board members buy or sell shares of their own company. These transactions are reported to the SEC and are publicly available.

International Business Machines Short Selling 2026: 2.7% Sold Short

Moderate short interest: 2.7% of the free float
Short % of free float
2.7%
Assessment
Moderate short interest
Short squeeze risk
Low
Data source
EODHD
Reported about twice a month

Short interest over time: International Business Machines

0.0%2.3%4.7%
Peak 4.1% · 7/12
5/307/309/30
2.7% today (moderate)Peaked at 4.1% on Jul 12, 2026Essentially unchanged over the last 30 daysMeasured over 123 days
What does the trend tell you?
Short interest has been markedly higher. It peaked at 4.1% on Jul 12, 2026 and now stands at 2.7% — a fall of 1.4 percentage points. Over the last month it has been fairly stable.

This is how shorting works: whoever shorts has borrowed the share and sold it, and to close the position again they must buy the share back. The fall from the peak therefore means that those who bet on a falling price in International Business Machines have bought shares back and closed their positions. It is worth watching whether the curve stays there or turns again. That is not in itself a signal about what the price will do — we cannot predict the market, and short interest is only one number among many. But it does say something about what the large players are doing.
The stock has a moderate share of short selling. Between 2-5% of the freely traded shares are sold short, which is within the normal range for most stocks.

Short interest comes from our data provider EODHD. The figure is reported about twice a month; we check it every trading day.
Short Interest Scale
0% 2% 5% 10% 20%+
Low Moderate High Very High Extreme
▲
2.7%

When Does International Business Machines Report Earnings – Next Date: Oct 21, 2026

The next earnings report from International Business Machines is scheduled for October 21, 2026, after the market closes. This report covers the third quarter (Q3), which ended on September 30, 2026.



Technical Analysis of International Business Machines 2026 – Signal: Strong Sell

Overall Technical Signal: Strong Sell

Based on trend analysis (SMA50/SMA200) and MACD trend (positive/negative on a daily + weekly basis). Updated October 7, 2026.

Technical analysis of International Business Machines (IBM.US) – RSI 40, MACD negative (bearish), daily candlestick chart October 2026
International Business Machines technical analysis – candlestick chart with RSI, MACD and volume profile. Updated Oct 7, 2026.

Trend Analysis of International Business Machines Corporation

International Business Machines Corporation is in a short-term downtrend. The price of $221.29 is 4.2% below the 20-day average ($230.99). Medium term, the picture is negative: the price is 4.5% below the 50-day average ($231.82). Long term, the stock is 12.2% below the 200-day average ($251.99), which signals a long-term downtrend.

Death Cross: The 50-day average (231.82) is below the 200-day average (251.99), which is a classic bearish signal for International Business Machines Corporation.

Is International Business Machines Corporation overbought or oversold?

International Business Machines Corporation has an RSI of 40.4. The stock sits in the lower part of the neutral zone, which points to weak momentum without being oversold. In the current downtrend, be careful about reading this as a buying opportunity.

MACD Analysis for International Business Machines Corporation

Daily MACD: MACD is negative (-3.884), which means the short-term trend is bearish (the 12-day EMA is below the 26-day EMA). MACD is below the signal line (-2.883) by 1.001, which confirms growing negative momentum in the downtrend.

Weekly MACD: MACD5 is negative (-7.908), which indicates a broader bearish long-term trend. MACD5 is below the signal line (-6.665) by 1.243, which confirms continued negative long-term momentum.

Overall MACD assessment: Both the daily and weekly MACD are negative and below their signal lines. Trend and momentum are negative across time horizons – the strongest bearish signal.

Risk Profile for International Business Machines Corporation

International Business Machines Corporation has an annual standard deviation of 48.8%, which classifies the stock as medium risk. The price can swing noticeably when the market moves.

Overall Technical Conclusion for International Business Machines Corporation

Trend: Negative. The price trades below SMA50 and SMA200.

MACD trend (zero line): Daily bearish (-3.884). Weekly bearish (-7.908).

MACD momentum (signal): Daily falling. Weekly falling.

RSI: 40.4 – neutral.

Technical signal: Strong Sell

The price is in a downtrend (below SMA50/SMA200) and MACD is negative on both a daily and weekly basis. Avoid buying and consider closing existing positions.

Frequently Asked Questions About International Business Machines stock in 2026

Should you buy International Business Machines stock now?
No, the technical signal for International Business Machines is currently Strong Sell. International Business Machines trades at $221.39 as of Oct 7, 2026. The technical analysis shows the following: MACD is negative (bearish trend) at -3.884 with falling momentum (signal: -2.883); RSI is at 40.4 (neutral zone); the stock is in a short-term downtrend (price below the 20-day average); the analyst price target of $240.59 points to 8.7% upside. The stock is in a broader downtrend (below SMA50/SMA200). Buying in a downtrend is generally not recommended. This is a technical observation based on current data, not investment advice.
What is the price target for International Business Machines stock?
The average analyst price target for International Business Machines is $240.59. The current price is $221.39, which gives an upside of 8.7%. Based on this, the stock is considered fairly valued. The fair value range (±10% of the price target) is between $216.53 and $264.65.
Is International Business Machines a dividend stock?
Yes, International Business Machines is a dividend stock with a dividend yield of 2.98%. The latest dividend was $1.69 per share. The latest ex-dividend date (traded without the dividend) was Aug 10, 2026. The payout ratio is 56.1%, which is considered moderate.
When does International Business Machines pay a dividend in 2026?
The next dividend date for International Business Machines has not been set yet. The latest ex-dividend date (last trading day with dividend rights) was Aug 10, 2026. The latest dividend was $1.69 per share with an ex-dividend date of Aug 10, 2026. The dividend yield is 2.98%. The payout ratio of 56.1% points to moderate dividend coverage.
What is the risk of International Business Machines stock?
International Business Machines is rated as a stock in the risk category Moderate. the annual standard deviation is 48.8%, which classifies the stock as Moderate.
Is International Business Machines overvalued?
International Business Machines is considered fairly valued – the price is close to the analyst price target. International Business Machines has the following valuation ratios: a P/E ratio of 20.0 (moderately to highly valued), a P/S ratio of 3.0, a P/B ratio of 6.3. The stock trades close to the analyst price target and is considered fairly valued.
Is International Business Machines overbought?
No, International Business Machines is not overbought. RSI is at 40.4 (neutral zone). The technical indicators show: RSI is at 40.4 (neutral zone between 30-70), which signals neither overbought nor oversold. In addition, the price is 4.2% below the 20-day average (short-term downtrend). In addition, MACD is negative with falling momentum (bearish).
When is the next International Business Machines earnings report?
International Business Machines reports its next earnings on October 21, 2026. The stock currently trades at $221.39. With a P/E ratio of 20.0, the market will be watching closely whether earnings meet expectations.
Is International Business Machines shorted?
Yes, International Business Machines is shorted with 2.7% of the free float sold short. This is a moderate level of short selling, within the normal range for most stocks. The figure comes from our data provider EODHD, is reported about twice a month, and we check it every trading day.
Are insiders buying International Business Machines stock?
No, insiders are not buying International Business Machines shares – they are net sellers. Over the last 3 months, insiders have made 0 purchases and 1 sales. On a net basis, 5,758,000 $ worth of shares were sold. Across the last 20 reported transactions, the split is 12 purchases and 8 sales, with a net 22,863,041 $ sold. Active sellers include Thomas Robert David, Robert David Thomas, Nickle Jaclyn Lamoreaux and others. Insider selling can have several explanations (e.g. planned 10b5-1 sales, portfolio diversification or taxes), but sustained selling by several insiders is worth watching closely.
Is International Business Machines a good stock?
Based on our total score, International Business Machines is rated as a mediocre stock with a total score of 44 out of 100. The stock scores around average on value, quality and momentum – it sits near the median in our database. The score is made up of Value: 52/100, Quality: 47/100, Momentum: 33/100. In addition: a dividend of 2.98%; technical signal: Strong Sell. Whether International Business Machines is a good investment depends on your time horizon, risk profile and portfolio. This is a data-driven observation, not investment advice.
What is the outlook for International Business Machines stock?
The outlook for International Business Machines based on current data: the average analyst price target is $240.59 (+8.7%); the stock is in a downtrend (below SMA50 and SMA200); the next earnings report is due on Oct 21, 2026, which can move the price; the P/E ratio is 20.0 (moderate). Keep in mind that stock prices are affected by many factors, including earnings reports, the economy and market sentiment. Past returns are no guarantee of future returns.
Why is International Business Machines stock falling?
International Business Machines is falling right now. The technical indicators show: the price is 4.2% below the 20-day average; MACD is negative with falling momentum (bearish signal); insiders have mostly been buying the stock recently. For the latest context, see our technical analysis and insider section above.
How high can International Business Machines go?
The average analyst price target for International Business Machines is $240.59, which corresponds to a potential gain of 8.7% from the current price of $221.39. The stock has traded between $197.77 and $330.09 over the last 52 weeks. The price is 32.9% below the 52-week high, which can indicate potential if the underlying fundamentals are intact. Keep in mind that price targets are estimates, not guarantees. Actual price moves depend on earnings, market conditions and unexpected events.
How low can International Business Machines fall?
The stock has traded as low as $197.77 over the last 52 weeks — that is 10.7% below the current price of $221.39. The biggest decline (drawdown) in the same period was 40.1% from high to low. Within a year, the price typically swings about ±48.8% (standard deviation — a measure of price swings). A difficult year could therefore mean a further decline of that size. Remember: past price swings are no guarantee for the future — a stock can fall further than the last 52 weeks suggest, especially on profit warnings, sector crises or a market crash. Use stop-loss orders and spread your portfolio to limit losses in single stocks.
What does International Business Machines do?
IBM (International Business Machines Corporation) sells IT solutions and services to businesses around the world. It makes money in four main areas: software, consulting, infrastructure (hardware), and financing. **How it makes money** IBM's biggest focus is software, especi... The company belongs to the Technology sector, more specifically the Information Technology Services industry, is headquartered in United States, and is traded on the USA Stocks. See the key figures, earnings history and price development above to evaluate International Business Machines as an investment.
Did International Business Machines raise or lower its guidance?
Over the last 60 days we have not registered a guidance raise or cut from International Business Machines. The company can still adjust its guidance at quarterly reports or between reports — see the earnings history above.
Is International Business Machines making money or losing money?
Yes, International Business Machines is making money, not losing it. The company has a profit margin (the share of revenue left over as profit) of 15.5% — which is solid. The operating margin (profit before interest and taxes) is 16.6%. At a P/E ratio of 20.0, you currently pay 20.0 dollars for every dollar of the company's annual earnings. A consistently profitable company is usually more resilient than growth stocks that are not yet making money.
Can International Business Machines go bankrupt?
The bankruptcy risk of International Business Machines is rated as low. Altman Z2 (a model for assessing financial distress) is 3.87 — that places the company in the healthy zone. The company has a healthy balance sheet with limited debt relative to earnings and assets. The Piotroski score (financial health 0-9, higher is better) is 5 — which is average. Debt relative to equity is 402% (high). Remember: models like Altman Z2 are statistical — unexpected shocks (fraud, a sector collapse, lawsuits) can always happen. Spread your portfolio.
Does International Business Machines have a lot of debt?
Yes, International Business Machines has elevated debt relative to equity. The debt-to-equity ratio (D/E — interest-bearing debt to equity) is 402%. For the technology sector, anything above 120% counts as elevated — that raises the financial risk, especially if interest rates rise or earnings fall. Tech companies are usually asset-light and need little borrowed capital — anything below 60% counts as low in this sector. Note: D/E levels are highly sector-specific — a bank at 300% debt is normal, a tech stock at 300% is extremely leveraged. Always compare with similar companies in the same sector. Can International Business Machines service its debt? Can service its debt, but it weighs on the company — the interest coverage ratio (how many times earnings can cover interest payments) is 6.1x, and net debt equals 3.5 years of earnings (EBITDA).

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