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IBMInternational Business Machines Corporation
$306.13$287.2B
Overview & Verdict
OverviewShould I Buy?
Valuation & Forecasts
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IBM logoInternational Business Machines Corporation(IBM)Earnings, Financials & Key Ratios

IBM•NYSE
$306.13
27.4× P/E·Price updated Jul 7, 2026
SectorTechnologyIndustryIT ServicesSub-IndustryIT Consulting and Systems Integration
AboutInternational Business Machines Corporation provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and software solutions, such as Red Hat, an enterprise open-source solutions; software for business automation, AIOps and management, integration, and application servers; data and artificial intelligence solutions; and security software and services for threat, data, and identity. This segment also provides transaction processing software that supports clients' mission-critical and on-premise workloads in banking, airlines, and retail industries. The Consulting segment offers business transformation services, including strategy, business process design and operations, data and analytics, and system integration services; technology consulting services; and application and cloud platform services. The Infrastructure segment provides on-premises and cloud-based server and storage solutions for its clients' mission-critical and regulated workloads; and support services and solutions for hybrid cloud infrastructure, as well as remanufacturing and remarketing services for used equipment. The Financing segment offers lease, installment payment, loan financing, and short-term working capital financing services. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.Show more
  • Revenue$67.53B+7.6%
  • EBITDA$15.35B+4.1%
  • Net Income$10.59B+75.9%
  • EPS (Diluted)11.17+73.7%
  • Gross Margin59.5%+5.0%
  • EBITDA Margin22.72%-3.3%
  • Operating Margin15.29%-4.8%
  • Net Margin15.69%+63.4%
  • ROE35.23%+46.3%

IBM Price & Volume

International Business Machines Corporation (IBM) stock price & volume — 10-year historical chart

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Revenue Momentum Faces Structural Margin Headwinds

Investment Thesis • Updated 2026Q1

VerdictNeutral
Growth:Accelerating
Profitability:Moderate
Financial:Strained
Cash Flow:Mixed
Primary Risk:High leverage and goodwill

Key Thesis Takeaways

  • IBM is currently navigating a transition toward hybrid cloud and AI, evidenced by a recent acceleration in revenue growth to 9.5% in 2026Q1.
  • However, the sustainability of this growth remains uncertain as operating margins have fluctuated significantly between 8.5% and 23.0% over the last ten quarters.
  • Investors should remain cautious given the company's reliance on debt financing, with a debt-to-equity ratio consistently exceeding 2.0x, and a balance sheet where goodwill accounts for nearly 48% of total assets.

Verdict Logic

while revenue growth has accelerated to 9.5%, the current P/E of 24.32 and a tightening current ratio of 0.80 suggest that the valuation may not fully account for the underlying operational and liquidity risks.

IBM Growth Metrics

International Business Machines Corporation (IBM) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR

Revenue CAGR

10 Years-1.89%
5 Years4.12%
3 Years3.72%
TTM9.68%

Profit CAGR

10 Years-2.17%
5 Years13.64%
3 Years86.23%
TTM96.49%

EPS CAGR

10 Years-1.82%
5 Years12.39%
3 Years83.76%
TTM94.66%

Return on Capital

10 Years10.52%
5 Years8.83%
3 Years9.77%
Last Year9.5%

IBM Recent Earnings

International Business Machines Corporation (IBM) EPS & revenue vs analyst estimates — last 4 quarters

Full history →
●Beat EPS 12/12 qtrs (100%)●Beat Revenue 9/12 qtrs (75%)
Q2 2026Latest
Apr 22, 2026
Metric
Actual
Est
EPS
$1.91+5.5%
$1.81
Rev
$15.9B+1.8%
$15.6B
Q1 2026
Jan 28, 2026
Metric
Actual
Est
EPS
$4.52+4.9%
$4.31
Rev
$19.7B+2.6%
$19.2B
Q4 2025
Oct 22, 2025
Metric
Actual
Est
EPS
$2.65+8.2%
$2.45
Rev
$16.3B+1.5%
$16.1B
Q3 2025
Jul 23, 2025
Metric
Actual
Est
EPS
$2.80+5.7%
$2.65
Rev
$17.0B+2.3%
$16.6B
QuarterDateEPS (Act vs Est)Revenue (Act vs Est)
Q2 2026LatestApr 22, 2026
$1.91vs $1.81+5.5%
$15.9Bvs $15.6B+1.8%
Q1 2026Jan 28, 2026
$4.52vs $4.31+4.9%
$19.7Bvs $19.2B+2.6%
Q4 2025Oct 22, 2025
$2.65vs $2.45+8.2%
$16.3Bvs $16.1B+1.5%
Q3 2025Jul 23, 2025
$2.80vs $2.65+5.7%
$17.0Bvs $16.6B+2.3%
Based on last 12 quarters of dataView full earnings history →

Latest IBM News

Recent stock market news and headlines for International Business Machines Corporation (IBM)

Proactive Investors - Finance·Jun 29, 2026
International Graphite locks in key construction contract for Collie Micronising Facility

International Graphite Ltd (ASX:IG6, FRA:H99, OTC:IGRPF) has taken a major step toward building its downstream graphite processing hub in Western Australia,...

Proactive Investors - Finance·Jun 29, 2026
Greatland Resources lifts group reserves 62% to 5Moz as Telfer drilling delivers major uplift

Greatland Resources Ltd (AIM:GGP, OTC:GRLGF, FRA:G8G, ASX:GGP) has increased its Group Ore Reserve by 62% to 5.0 million ounces of gold, marking a major...

Proactive Investors - Finance·Jun 29, 2026
Altech raises $950,000 from sale of non-core Meckering land

Altech Batteries Ltd (ASX:ATC, OTC:ALTHF, FRA:A3Y) has completed the sale of its landholding at Meckering in Western Australia, generating gross proceeds of...

Fool - Investing News·Jun 28, 2026
The Smartest Dividend Stocks to Buy With $5,000 Right Now

These dividend stocks can multiply your money and provide good yields right now.

Proactive Investors - Finance·Jun 27, 2026
Varon CEO discusses Ballislife Hydro Growth - ICYMI

Varon Corp (OTCID:OZSC) CEO Benjamin Schubert talked with Proactive about two significant developments for the company's Ballislife Hydro sports drink...

Peers Comparison

Key metrics vs top competitors for International Business Machines Corporation (IBM)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
IBM logoIBMInternational Business Machines CorporationCurrent
$306.13$287.16B27.417.62%15.69%35.23%2.15%
ACN logoACNAccenture plc
$142.14$86.98B11.707.36%10.7%24.08%—
HPE logoHPEHewlett Packard Enterprise Company
$43.45$57.53B-974.1014.06%3.9%6.11%—
DXC logoDXCDXC Technology Company
$10.16$1.66B101.60-1.76%0.14%0.54%—
CTSH logoCTSHCognizant Technology Solutions Corporation
$43.94$20.82B9.666.95%10.41%14.79%—
INFY logoINFYInfosys Limited
$11.27$45.73B13.584.57%16.44%31.61%—

Compare IBM vs Peers

International Business Machines Corporation (IBM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs ACN

Most directly comparable listed peer for IBM.

Scale Benchmark

vs NVDA

Larger-name benchmark to compare IBM against a more recognizable public peer.

Peer Set

Compare Top 5

vs ACN, HPE, DXC, CTSH

IBM SEC Filings & Documents

International Business Machines Corporation (IBM) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

6
Material company update

Apr 22, 2026·SEC

Material company update

Mar 3, 2026·SEC

Material company update

Feb 2, 2026·SEC

10-K Annual Reports

2
FY 2026

Feb 24, 2026·SEC

FY 2025

Feb 25, 2025·SEC

10-Q Quarterly Reports

4
FY 2026

Apr 23, 2026·SEC

FY 2025

Oct 23, 2025·SEC

FY 2025

Jul 24, 2025·SEC

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IBM Frequently Asked Questions

International Business Machines Corporation (IBM) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is International Business Machines Corporation's revenue?

International Business Machines Corporation (IBM) reported $68.91B in revenue for fiscal year 2025. This represents a 6% decrease from $73.42B in 1996.

How fast is International Business Machines Corporation growing?

International Business Machines Corporation (IBM) grew revenue by 7.6% over the past year. This is steady growth.

Is IBM profitable?

Yes, International Business Machines Corporation (IBM) is profitable, generating $10.75B in net income for fiscal year 2025 (15.7% net margin).

Dividend & Returns
Does IBM pay dividends?

Yes, International Business Machines Corporation (IBM) pays a dividend with a yield of 2.15%. This makes it attractive for income-focused investors.

What is IBM's return on equity?

International Business Machines Corporation (IBM) has a return on equity (ROE) of 35.2%. This is excellent, indicating efficient use of shareholder capital.

What is International Business Machines Corporation's free cash flow?

International Business Machines Corporation (IBM) generated $13.09B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in IBM back in 1996?

Total return calculator · dividends reinvested · 30+ years of data

See returns →