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International Business Machines Corporation

IBM Technology Information Technology Services

International Business Machines Corporation’s revenue for fiscal 2025 (year ended December 2025) was $67.5 billion, up 7.62% from fiscal 2024.

Revenue
+4.73%
EPS
+24.1%
Free cash flow
+31.3%
Total debt
+1.11%

Quarter to September 2026, against a year earlier

248.25 6.07 −2.39%
Market cap
$233.6B
P/E
20.9×
Fwd P/E
25.8×
Dividend yield
2.72%
F-score
6/9
Altman Z
3.49
Beneish M
−2.41
Dividend safety
64/100
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

Revenue by segment Fiscal 2023

  • Software
  • Consulting
  • Infrastructure
  • Financing

Every year since 2008 →

Insider Decisions last twelve months

Bought, $m 0.42
Sold, $m 5.76
Trades a month
Jan 26 Apr 26 Jul 26 Oct 26
Buy — 1 2 — — — — — — — — —
Sell — — — — — — — — 1 — — —
Insider Ownership 0.02%

Capital & Financial Ratios $m

Size
Market Cap 233,550.00
Revenue ttm 69,868.00
Net income ttm 11,171.00
Free cash flow ttm 14,719.00
Net debt Q 52,711.00
Valuation
P/E 20.86
Forward P/E 25.80
Price / sales 3.36
Forward P/S Powerpack
Price / FCF 15.93
Price / book 6.48 (above 6: high)
Financial health
Current ratio Q 0.85 (below 1: weak)
Debt / equity Q 1.76
Interest coverage Q 5.53
Growth
Revenue growth Q +4.73% (above 0%: growing)
Operating income growth Q +7.31% (above 0%: growing)
EPS, this year +7.10%
EPS, next year A +6.84%
Revenue, next year A +4.49%
EPS, past 5 yrs +12.39%
EPS, next 5 yrs A +7.77%

Green and red mark values outside typical ranges; (Q) is the latest quarter, (A) analysts’ estimates. How we judge →

Valuation vs history

EV/Sales, ten years
EV/Sales is 4.1×, against a ten-year median of 2.8×; over the ten years it ranged from 1.7× in 2018 to 5.1× in 2025.
P/E against its own 10 years 52.44%
10-year low 10-year high
P/S against its own 10 years 86.80%
10-year low 10-year high
P/B against its own 10 years 42.57%
10-year low 10-year high
EV/Sales against its own 10 years 87.31%
10-year low 10-year high
EV/FCF against its own 10 years 82.40%
10-year low 10-year high

Dividends raised every year since 2018

Yield
2.72%
Annual rate
6.74
Payout ratio
57.5%
Growth, 2018–26
+1.05%/yr
  1. 6.21 ’18
  2. 6.43 ’19 +4
  3. 6.51 ’20 +1
  4. 6.55 ’21 +1
  5. 6.59 ’22 +1
  6. 6.63 ’23 +1
  7. 6.67 ’24 +1
  8. 6.71 ’25 +1
  9. 6.75 ’26 +1
paid change on the year, % Powerpack

Assets vs Liabilities $m

2023 2024 2025 Q'26
Cash 13,462 14,805 14,471 11,106
Receivables 7,854 7,751 9,164 7,467
Inventory 1,161 1,289 1,220 1,945
Other — — — —
32,908 34,482 36,944 31,192
2023 2024 2025 Q'26
Payables 4,132 4,032 4,756 4,491
ST’ Debt 6,426 5,089 6,424 7,013
Other 3,501 3,605 4,114 3,668
34,122 33,142 38,658 36,485

Compound Annual Growth %

10y 5y 3y
Sales (1.89%) 4.12% 3.72%
Cash Flow (2.65%) (6.23%) 8.13%
Earnings (2.17%) 13.64% 86.27%
Book Value 8.54% 9.57% 14.13%

Earnings Trends EPS, adjusted, against the consensus

Q3 FY26 Estimate 2.88 Actual 2.95

Earnings per share against the consensus, by quarter
Quarter Estimate Reported Result
Q4 FY25 4.33 4.52 Beat by 0.19
Q1 FY26 1.81 1.91 Beat by 0.10
Q2 FY26 2.93 2.93 Met by 0.00
Q3 FY26 2.88 2.95 Beat by 0.07
Q4 FY26 4.63 — Reports 27 January 2027

EPS $

Mar Jun Sep Dec Year
’26 1.28 2.27 2.30 — —
’25 1.12 2.31 1.84 5.88 11.17
’24 1.72 1.96 (0.36) 3.09 6.43
’23 1.02 1.72 1.84 3.55 8.14
’22 0.81 1.53 (3.54) 2.96 1.80
’21 1.06 1.47 1.25 2.57 6.35
’20 1.31 1.52 1.89 1.51 6.23
Fiscal quarters ending in the months shown.

Revenue $m

Mar Jun Sep Dec Year
’26 15,917 17,162 17,103 — —
’25 14,541 16,977 16,331 19,686 67,535
’24 14,462 15,770 14,968 17,553 62,753
’23 14,252 15,475 14,752 17,381 61,860
’22 14,197 15,535 14,107 16,691 60,530
’21 13,187 14,218 13,251 16,694 57,350
’20 17,571 18,123 17,560 1,925 55,179
Fiscal quarters ending in the months shown.

Operating Cash Flow $m

Mar Jun Sep Dec Year
’26 5,169 2,597 4,025 — —
’25 4,370 1,701 3,082 4,040 13,193
’24 4,168 2,066 2,881 4,330 13,445
’23 3,774 2,638 3,056 4,463 13,931
’22 3,248 1,321 1,901 3,965 10,435
’21 4,914 2,625 2,713 2,544 12,796
’20 4,476 3,576 4,285 5,860 18,197
Fiscal quarters ending in the months shown.

Free Cash Flow $m

Mar Jun Sep Dec Year
’26 4,945 2,391 3,722 — —
’25 4,200 1,528 2,834 3,661 12,223
’24 3,941 1,891 3,074 4,048 12,954
’23 3,485 2,288 2,887 4,347 13,007
’22 3,039 1,000 1,592 3,569 9,200
’21 4,559 2,141 2,252 2,169 11,121
’20 3,892 3,027 3,625 5,223 15,767
Fiscal quarters ending in the months shown.

Valuation

The price implies free cash flow after share-based pay growing 7.3% a year for ten years. It grew −2.2% a year over the last ten.

Implied
7.3%
10 years, reported
−2.2%
Open the model

Target Price Range

Analyst price targets

Recommendation Rating

2.4
1Buy 2 3Hold 4 5Sell

Ten years at a glance Fiscal years to December

Ten-year view Analyst estimates Powerpack
Group Line 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TTM Sep ’26 Trend 10 yrs 2026e 2027e 2028e Next 3/yr
Income, $m
Income, $m Revenue 79,919 79,139 79,591 57,714 55,179 57,350 60,530 61,860 62,753 67,535 69,868 (1.9%) 70,567 73,238 77,211 +4.6%
Gross margin, % 48.20 46.68 46.41 54.64 55.94 54.90 54.00 55.45 56.65 58.19 57.96 +10.0 pt
EBT 12,330 11,400 11,342 7,206 2,572 4,837 1,156 8,690 5,797 10,328 10,506 (1.9%)
EBT margin, % 15.43 14.41 14.25 12.49 4.66 8.43 1.91 14.05 9.24 15.29 15.04 (0.1) pt
Net income 11,872 5,753 8,728 9,431 5,590 5,743 1,639 7,502 6,023 10,593 11,171 (1.3%)
Per share, $
Per share, $ Revenue 83.65 84.84 87.27 65.05 61.97 64.01 67.06 67.89 68.08 72.44 73.98 (1.6%)
Earnings 12.43 6.17 9.57 10.63 6.28 6.41 1.82 8.23 6.53 11.36 11.90 (1.0%)
Cash flow 17.88 17.93 16.72 16.65 20.44 14.28 11.56 15.29 14.59 14.15 16.76 (2.6%)
Capex (3.29) (2.97) (3.45) (1.97) (2.73) (1.87) (1.37) (1.01) (0.53) (1.04) (1.18) (12.0%)
Free cash flow 14.59 14.96 13.27 14.68 17.71 12.41 10.19 14.27 14.05 13.11 15.59 (1.2%)
Book value 19.25 19.00 18.56 23.65 23.28 21.20 24.40 24.82 29.72 35.12 38.34 +6.9%
Shares, m 955 933 912 887 890 896 903 911 922 932 939 (0.3%)
Valuation, ×
Valuation, × P/E 13.01 24.32 11.50 12.19 19.43 20.85 78.20 19.65 33.66 26.10 20.86 25.9
P/S 1.93 1.76 1.26 1.99 1.97 2.09 2.11 2.38 3.23 4.09 3.36 2.3
P/B 8.41 7.86 5.93 5.49 5.23 6.30 5.80 6.51 7.40 8.43 6.48 6.7
EV/Sales 2.36 2.19 1.68 2.93 2.82 2.86 2.81 3.08 3.87 4.78 4.11 2.9
EV/FCF 13.50 12.42 11.07 12.98 9.87 14.74 18.47 14.63 18.74 26.42 19.51 15.3
Cash, $m
Cash, $m Operating cash flow 17,084 16,724 15,247 14,770 18,197 12,796 10,435 13,931 13,445 13,193 15,831 (2.8%)
Capex (3,143) (2,769) (3,147) (1,749) (2,430) (1,675) (1,235) (924) (491) (970) (1,112) (12.2%)
Free cash flow 13,941 13,955 12,100 13,021 15,767 11,121 9,200 13,007 12,954 12,223 14,719 (1.5%)
Balance, $m
Balance, $m Working capital 7,613 12,372 10,919 719 (704) (4,080) (2,387) (1,214) 1,340 (1,714) (5,293) n/m
Net debt 33,641 33,982 33,590 53,890 47,082 44,147 42,108 43,085 40,168 46,789 52,711 +3.7%
Shareholders’ equity 18,392 17,725 16,929 20,985 20,727 18,996 22,021 22,613 27,393 32,740 36,206 +6.6%
Returns, %
Returns, % ROA 10.42 4.74 7.02 6.84 3.63 3.99 1.26 5.72 4.42 7.33 7.41 (3.1) pt
ROIC 14.32 14.11 15.08 5.76 3.73 6.19 7.32 8.11 7.76 8.53 7.94 (5.8) pt
ROE 72.36 31.86 50.37 49.75 26.80 28.92 7.99 33.61 24.09 35.23 34.80 (37.1) pt
People
People Employees 414,400 397,800 381,100 383,800 345,900 345,000 345,000 305,300 293,400 286,800 — (4.0%)
Revenue/emp, $m 0.19 0.20 0.21 0.15 0.16 0.17 0.18 0.20 0.21 0.24 — +2.2%
Negative figures in brackets.
estimates

All 10 years →

Fiscal years to Dec 2025 · latest quarter Sep 2026 · fundamentals updated 2 Nov 2026

Business profile

Updated

IBM is a technology company founded in 1911 and headquartered in Armonk. Arvind Krishna is chairman, president and chief executive officer. It helps organizations modernize applications, run hybrid-cloud environments, use artificial intelligence, manage data, and operate mission-critical computing systems.

Its offer combines software, consulting and infrastructure. The software side includes Red Hat, OpenShift, data, automation, transaction-processing and security capabilities. Its infrastructure includes server, storage and mainframe platforms, including IBM Z, for workloads where clients require security, reliability, scalability and data control. Consulting designs and implements technology, operating-model and workflow changes for clients.

Where the money comes from and where it goes Fiscal 2023

Fiscal 2023: revenue by segment, and margins
Software 26,308 42.53%
Consulting 19,985 32.31%
Infrastructure 14,593 23.59%
Financing 741 1.20%
Gross margin 55.45%
Operating margin 13.78%
Pre-tax margin 14.05%

Revenue by segment since 2008

International Business Machines Corporation vs peers in Information Technology Services (Q) = latest quarter vs a year earlier

Company Market cap P/E Fwd P/E Revenue growth (Q) EPS growth (Q) FCF growth (Q) Gross margin (Q) EBIT margin (Q) Compare
IBM International Business Machines Corporation $233.6B 20.9× 25.8× +4.73% (above 0%: growing) +24.06% (above 0%: growing) +31.33% (above 0%: growing) 56.80% 15.88%
ACN Accenture PLC $156.7B 19.5× 17.6× +6.15% (above 0%: growing) +45.81% (above 0%: growing) −25.25% (below 0%: shrinking) 32.04% 15.33% Compare
INFY American Noble Gas Inc. $52.0B 15.8× 19.1× +1.36% (above 0%: growing) 0.00% −15.71% (below 0%: shrinking) 31.06% 20.97% Compare
FISV Fiserv, Inc. $33.4B — (loss-making) 10.5× −1.27% (below 0%: shrinking) n/m −73.57% (below 0%: shrinking) 53.06% (105.74%) Compare
CTSH Cognizant Technology Solutions Corporation $29.8B 12.1× 11.5× +4.60% (above 0%: growing) +148.80% (above 0%: growing) −20.26% (below 0%: shrinking) 33.77% 15.40% Compare
BR Broadridge Financial Solutions, Inc. $21.9B 21.3× 19.4× +4.99% (above 0%: growing) −40.82% (below 0%: shrinking) +500.79% (above 0%: growing) 25.67% 10.40% Compare
WIT Wipro Limited $21.4B 18.2× — +1.02% (above 0%: growing) 0.00% +50.60% (above 0%: growing) 28.84% 16.42% Compare
CDW CDW Corporation $19.8B 18.6× 17.6× +17.73% (above 0%: growing) +11.55% (above 0%: growing) +24.62% (above 0%: growing) 20.51% 7.25% Compare
LDOS Leidos Holdings, Inc. $16.6B 12.0× 13.1× +3.60% (above 0%: growing) +16.05% (above 0%: growing) −30.00% (below 0%: shrinking) 17.71% 11.94% Compare
Median of peers $25.8B 18.2× 17.6× +4.10% +11.55% −17.98% 29.95% 13.64%

All 81 Information Technology Services stocks →

From the latest earnings call

Updated

  • CFO Jim Kavanaugh said new business and the closure of deals delayed from the second quarter helped drive IBM’s software performance.
  • CEO Arvind Krishna said clients modernizing applications for AI are creating demand for OpenShift and need access to enterprise data through Confluent.

Analyst rating changes each firm’s latest, last six months

Firm Date Action Rating Target
Citi Oct 27, 2026 Target raised Buy 245.00 → 280.00
Goldman Sachs Oct 27, 2026 Target raised Buy 270.00 → 300.00
Bank of America Oct 23, 2026 Reiterated Buy 280.00
Barclays Oct 22, 2026 Target raised Outperform 262.00 → 277.00
Morningstar Oct 22, 2026 Target raised — 225.00 → 230.00
Jefferies Oct 22, 2026 Target raised Buy 270.00 → 280.00
Truist Securities Oct 21, 2026 Initiated Hold 240.00
RBC Oct 21, 2026 Reiterated Outperform 270.00
Morgan Stanley Oct 21, 2026 Target raised Hold 238.00
JPMorgan Oct 14, 2026 Upgrade — —

Largest institutional holders 13F, quarter to 30 June 2026

Held by institutions 64.49%
Held by the ten largest 36.01%
Holder Shares Stake Change
Vanguard 99.64m 10.58% +1.51m
BlackRock 76.76m 8.15% −802.47k
State Street 56.05m 5.95% +1.45m
Geode Capital Management 23.45m 2.49% +372.17k
Morgan Stanley 17.46m 1.85% −2.17m
Capital Group 16.37m 1.74% −881.68k
Bank of America 14.99m 1.59% −1.08m
JPMorgan Chase 12.45m 1.32% −6.10m
UBS 11.85m 1.26% +340.89k
Northern Trust 10.23m 1.09% −77.06k
13F filings for the quarter to 30 June 2026: long positions in US-listed shares reported by managers with $100m or more, ~45 days after the quarter.

Pay and ownership Proxy statement filed 10 March 2026

Chief executive’s pay

Year Total pay Actually paid $100 invested
2025 37.99m 83.59m 303.00
2024 25.14m 57.11m 219.00
2023 20.40m 32.77m 157.00
2022 16.58m 23.94m 129.00
2021 17.55m 23.80m 117.00
Total pay is as the Summary Compensation Table states it; actually paid revalues the year’s share awards at its end, as the SEC’s pay-versus-performance rule asks. $100 invested is what $100 in the company’s shares at the start of the earliest year shown was worth at each year’s end. Read the proxy statement

International Business Machines Corporation (IBM) Latest News

4 Nov

Impact 3 · · Zacks

29 Oct

Impact 4 · · Simply Wall St.
Impact 4 · · Barchart
Impact 4 · · Trefis
Impact 3 · · Trefis
Impact 3 · · GlobeNewswire
Impact 3 · · 24/7 Wall St.

28 Oct

Impact 4 · · PR Newswire
Impact 4 · · PR Newswire
Impact 3 · · beincrypto.com

27 Oct

Impact 4 · · Barchart
Impact 4 · · Trefis
Impact 4 · · PR Newswire
Impact 4 · · CNW Group
Impact 3 · · Zacks

26 Oct

Impact 4 · · PR Newswire
Impact 4 · · The Motley Fool
Impact 4 · · 24/7 Wall St.
Impact 4 · · Simply Wall St.
Impact 4 · · Business Wire
Impact 4 · · Trefis
Impact 3 · · Investing.com
Impact 3 · · Zacks

25 Oct

Impact 4 · · Benzinga

24 Oct

Impact 3 · · Barchart

23 Oct

Impact 4 · · TheStreet
Impact 4 · · Simply Wall St. earnings
Impact 4 · · The Motley Fool
Impact 3 · · Trefis
Impact 3 · · Trefis

IBM metrics, ten years each

stockrow.com/IBM · Data as of Nov 2, 2026 · For information only; not investment advice. · © 2026 stockrow.com