New York, Feb 2, 2026, 21:23 ET — The market has closed.
International Business Machines Corporation shares climbed $8.01, up 2.6%, closing Monday at $314.73. The stock remains in focus as Tuesday’s trading approaches.
This move is significant as investors digest the company’s latest outlook for 2026 growth and cash flow — plus its plans for shareholder returns. IBM projects over 5% revenue growth in constant currency, excluding exchange-rate effects, and expects roughly $1 billion more in free cash flow. The board also greenlit a quarterly dividend of $1.68 per share, payable to shareholders of record on Feb. 10. “We enter 2026 with momentum and in a position of strength,” CEO Arvind Krishna said in the earnings release. (IBM Newsroom)
Late Monday, a SEC filing revealed Krishna was granted 83,028 shares at no cost through performance share units, which vest upon hitting certain goals. He then sold 41,133 shares at $303.755 each, with the filing noting the sale covered tax withholding requirements. (SEC)
In a separate Form 8-K filing, the company disclosed new underwriting agreements and note documents linked to debt offerings totaling €3.5 billion in euro notes and $3.25 billion in U.S. dollar notes under its shelf registration. The shelf registration allows firms to issue securities over time through subsequent supplements. (SEC)
IBM’s shares rose as U.S. stocks closed higher, with the Dow gaining 1.05% and the S&P 500 and Nasdaq also finishing in positive territory. “The fundamentals are good and earnings are strong,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. The report noted U.S. factory activity expanded for the first time in a year. However, a partial government shutdown cast uncertainty over the week, leading the Bureau of Labor Statistics to announce it won’t publish the January employment report on Friday. (Reuters)
IBM’s real question mark remains whether its software and hybrid-cloud business can keep up momentum, especially as clients shift budgets toward AI and automation. In its Jan. 28 earnings report, IBM topped fourth-quarter revenue and profit forecasts. CFO James Kavanaugh pointed out that growth at Red Hat was hit by last year’s prolonged U.S. government shutdown, noting the federal government accounts for about 15% of hybrid-cloud bookings—orders signed but not yet booked as revenue. He also warned that the planned Confluent acquisition could dilute results by roughly $600 million in 2026, mainly due to stock-based compensation and interest expenses. Plus, IBM will stop breaking out its “AI book of business” metric starting in Q1. (Reuters)
The bond-related paperwork adds a further complication. Investors keep a close eye on how much debt a company carries, especially when it’s managing acquisitions, dividends, and buybacks—all while rates remain stubbornly high.
Traders on Tuesday will be watching closely to see if Monday’s jump holds up or fizzles out. The macro environment is dominating the conversation, while IBM’s hefty U.S. government client portfolio could influence its bookings in a noticeable way.
IBM has penciled in April 22 for its preliminary first-quarter 2026 earnings release, but before that, the dividend record date is set for Feb. 10. (IBM)
