IBM Just Had Its Worst Day Ever—What Earnings Must Prove
IBM’s adjusted earnings per share missed estimates by 9 cents, and management’s demand warning fueled worries about growth and dividend safety.
- Last week, International Business Machines results rattled the stock as shares cratered amid a shift in demand away from its products and services.
- IBM announced adjusted EPS of $2.93 for the second quarter, falling short of the $3.02 analysts had expected and fueling uncertainty about future growth.
- Despite the uncertainty, IBM offers a 3.2% yield, well above the 1.1% S&P average; its payout ratio rose around 60% over recent periods, with the quarterly dividend of $1.69 remaining well below EPS figures.
- Free cash flow totaled $12.3 billion over the past 12 months, nearly double the $6.3 billion paid out in dividends, suggesting the payout remains sustainable.
- IBM recently increased its dividend, demonstrating management confidence in sustainability; the company has boosted its payout by a modest 3% over five years.
26 Articles
26 Articles
IBM Is The World’s Worst Big Tech Company
IBM (NYSE: IBM), which has been poorly run for decades, is on the ropes. The company has had plenty of practice managing decline. When it warned about its earnings a week ago, the stock dropped over 20%. It is down 30% for the year, while the S&P is up 9%. The picture is even bleaker ... IBM Is The World’s Worst Big Tech Company
The IBM technology released tonight the results of the first half of the year in which it achieved a net profit of 3,381 million dollars (2,964 million euros), an increase of 4% compared to the homologous period of 2025. The hardware and software manufacturer and also consultant had accumulated revenues of 33,079 million dollars in the first six months of 2026, which represents a growth of 5% regarding the same period of the previous year, accor…
IBM shares extend losing streak, plunge 26% in five sessions after sales miss
IBM's shares have plummeted 26.5%, reaching a multi-quarter low after a cautious sales outlook. The stock saw its biggest drop in over 50 years, attributed to shifting customer spending amid AI-related supply shortages, impacting its software and infrastructure businesses significantly.
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