By GuruFocus News
Publication Date: 2026-10-01 19:57:00
On October 01, 2026, International Business Machines Corp (NYSE: IBM) shares have declined 23% year-to-date following preliminary Q2 earnings that fell short of expectations. As the market awaits the Q3 earnings report scheduled for October 21, analysts remain divided on IBM’s outlook, reflecting contrasting views on its dividend appeal and growth prospects.
- IBM offers a dividend yield of 2.77% with a payout ratio of 46% and modest 3-year dividend growth of 0.6%, supporting a sustainable and attractive income stream; the stock is currently 6.3% undervalued versus its GF Value™ of $243.01.
- The company’s GF Score™ stands at a solid 78 out of 100, indicating a generally healthy combination of financial strength, profitability, and valuation metrics.
- Insider activity shows net selling over the past 12 months with $5.8 million sold versus $0.4 million bought, while 12 GuruFocus-tracked gurus hold IBM shares, with 6 adding and 4 trimming positions recently.
