International Business Machines Corporation (IBM) To Go Ex-Dividend on November 10th

by · The Markets Daily

International Business Machines Corporation (NYSE:IBM – Get Free Report) declared a quarterly dividend on Wednesday, October 21st. Shareholders of record on Tuesday, November 10th will be paid a dividend of $1.69 per share by the technology company on Thursday, December 10th. This represents a $6.76 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date is Tuesday, November 10th.

International Business Machines has a dividend payout ratio of 58.1% meaning its dividend is sufficiently covered by earnings. Analysts expect International Business Machines to earn $13.20 per share next year, which means the company should continue to be able to cover its $6.76 annual dividend with an expected future payout ratio of 51.2%.

International Business Machines Stock Performance

Shares of IBM stock opened at $252.42 on Friday. 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 has a fifty-two week low of $199.19 and a fifty-two week high of $332.46. The stock’s 50-day moving average is $232.68 and its two-hundred day moving average is $243.63. The firm has a market cap of $237.81 billion, a P/E ratio of 22.40, a PEG ratio of 2.42 and a beta of 0.73.

International Business Machines (NYSE:IBM – Get Free Report) last announced its quarterly earnings results on Wednesday, October 21st. The technology company reported $2.95 EPS for the quarter, beating the consensus estimate of $2.85 by $0.10. International Business Machines had a return on equity of 35.08% and a net margin of 15.99%. The business had revenue of $17.10 billion during the quarter, compared to analysts’ expectations of $16.82 billion. During the same quarter in the previous year, the business posted $2.65 EPS. The firm’s quarterly revenue was up 4.7% compared to the same quarter last year. Analysts predict that International Business Machines will post 12.34 earnings per share for the current fiscal year.

Key Headlines Impacting International Business Machines

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

  • Positive Sentiment: Quarterly results exceeded expectations. IBM reported adjusted earnings of $2.95 per share versus an approximately $2.85–$2.88 consensus, while revenue rose 4.7% year over year to $17.10 billion, ahead of the roughly $16.82 billion estimate. Net income increased to $2.19 billion from $1.74 billion a year earlier. IBM third-quarter results
  • Positive Sentiment: Software growth rebounded. Software revenue growth accelerated to 9% at constant currency from 5% in the second quarter, supported by Red Hat, transaction processing and the Confluent acquisition. Infrastructure revenue also grew, helped by the return of previously delayed contracts. IBM software growth article
  • Positive Sentiment: Cash-flow outlook improved. IBM raised its full-year free-cash-flow outlook, expecting growth of more than $1 billion from the prior year. Third-quarter free cash flow was approximately $3 billion, up about $700 million year over year. The company also declared a quarterly dividend of $1.69 per share. IBM free-cash-flow outlook
  • Neutral Sentiment: Analysts raised targets. JPMorgan, RBC, Stifel and other firms increased their IBM price targets following the results, reflecting improved confidence in software execution and cash generation.
  • Negative Sentiment: Growth durability remains a concern. IBM maintained its full-year constant-currency revenue-growth forecast of 4% to 5%, and management’s outlook suggests a slower fourth quarter. Investors are also questioning how much of the software acceleration came from Confluent rather than underlying organic growth. Reuters report on IBM software rebound
  • Negative Sentiment: Valuation and AI commentary temper the response. IBM trades at a premium valuation despite modest overall growth, while CEO Arvind Krishna’s comments that lower-cost open AI models may deliver comparable performance raised questions about enterprise AI spending and future monetization.

About International Business Machines

(Get Free Report)

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology and consulting company that helps organizations modernize their information technology and business operations. Its offerings include hybrid cloud solutions, artificial intelligence software and services, enterprise software, IT infrastructure, cybersecurity, data analytics, and technology consulting.

IBM provides products and services to businesses, governments, and other institutions across industries and regions worldwide.

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