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. In the quarter to June 2026, revenue grew 1.09%, EPS fell 2.54%, free cash flow grew 56.5% and total debt fell 3.39%, each against the same quarter a year earlier. Member of the S&P 500 and Dow Jones; dividend growth for twenty-five consecutive years, revenue growth for five; insiders bought in the last twelve months.

232.56 1.56 −0.67%
Market cap
$220.6B
P/E
20.3×
Fwd P/E
27.7×
Dividend yield
2.90%
F-score
6/9
Altman Z
3.49
Beneish M
−2.41
Dividend safety
64/100

Insider Decisions trades per month

Total buys 0.42
Total sells 5.76
Totals in millions of $.
Dec 25 Mar 26 Jun 26 Sep 26
Buy — — 1 2 — — — — — — — —
Sell — — — — — — — — — 1 — —
Insider Ownership 0.00%

Capital & Financial Ratios $m

Market Cap 220,570.00
Revenue 69,096.00
Net Income 10,725.00
Free Cash Flow 13,831.00
Net Debt 53,810.00
Current Ratio 0.79 (below 1: weak)
Debt/Equity 1.79
P/E ratio 20.31
Fwd P/E 27.70
P/S ratio 3.17
P/B ratio 6.34 (above 6: high)
Past 5Y EPS Growth 12.39%
This Y EPS Growth 6.22%
Next Y EPS Growth 6.83%
Next Y revenue growth 4.23%
Next 5Y EPS Growth 7.36%

Green and red mark values outside typical ranges. How we judge →

Valuation vs history

P/E against its own 10 years 49.10%
10-year low 10-year high
P/S against its own 10 years 83.67%
10-year low 10-year high
P/B against its own 10 years 38.85%
10-year low 10-year high
EV/Sales against its own 10 years 84.26%
10-year low 10-year high
EV/FCF against its own 10 years 83.38%
10-year low 10-year high

Dividends

Payout Ratio 0.60
Annual Dividend Rate 6.74
Annual Dividend Yield 2.90%
total individual payouts
2028 Powerpack
2027 Powerpack
2026 6.77
1.68
1.69
1.69
2025 6.71
1.67
1.68
1.68
1.68
2024 6.67
1.66
1.67
1.67
1.67
2023 6.63
1.65
1.66
1.66
1.66
2022 6.59
1.64
1.65
1.65
1.65
2021 6.55
1.63
1.64
1.64
1.64
2020 6.51
1.62
1.63
1.63
1.63
2019 6.43
1.57
1.62
1.62
1.62
2018 6.21
1.50
1.57
1.57
1.57
2017 5.90
1.40
1.50
1.50
1.50
2016 5.50
1.30
1.40
1.40
1.40
predictions special payouts not included in total or ratios

Assets vs Liabilities $m

2023 2024 2025 Q'26
Cash 13,462 14,805 14,471 8,177
Receivables 7,854 7,751 9,164 7,392
Inventory 1,161 1,289 1,220 1,746
Other — — — —
32,908 34,482 36,944 28,398
2023 2024 2025 Q'26
Payables 4,132 4,032 4,756 4,395
ST’ Debt 6,426 5,089 6,424 5,775
Other 3,501 3,605 4,114 3,364
34,122 33,142 38,658 35,912

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%

Revenue $m

Mar Jun Sep Dec Year
’26 15,917 17,162 — — —
’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 — — —
’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 — — —
’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.

EPS $

Mar Jun Sep Dec Year
’26 1.28 2.27 — — —
’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.

Target Price Range

Analyst price targets

Recommendation Rating

2.4
1Buy 2 3Hold 4 5Sell

Ten years at a glance Fiscal years to December

Group Line 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Trend 2026e 2027e 2028e
Price, $
Price, $ Low 111.76 133.01 101.28 106.78 86.58 112.20 115.55 120.55 157.89 214.50

Analyst estimates 2026–2028

Powerpack
High 162.48 174.75 163.60 146.22 151.77 146.12 153.21 166.34 239.35 324.90
People
People Employees 414,400 397,800 381,100 383,800 345,900 345,000 345,000 305,300 293,400 286,800
Revenue/emp, $m 0.19 0.20 0.21 0.15 0.16 0.17 0.18 0.20 0.21 0.24
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
Gross margin, % 48.20 46.68 46.41 54.64 55.94 54.90 54.00 55.45 56.65 58.19
EBT 12,330 11,400 11,342 7,206 2,572 4,837 1,156 8,690 5,797 10,328
EBT margin, % 15.43 14.41 14.25 12.49 4.66 8.43 1.91 14.05 9.24 15.29
Net income 11,872 5,753 8,728 9,431 5,590 5,743 1,639 7,502 6,023 10,593
Depreciation 4,381 4,541 4,480 6,059 6,695 6,417 4,802 4,396 4,667 5,021
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
Earnings 12.43 6.17 9.57 10.63 6.28 6.41 1.82 8.23 6.53 11.36
Cash flow 17.88 17.93 16.72 16.65 20.44 14.28 11.56 15.29 14.59 14.15
Capex (3.29) (2.97) (3.45) (1.97) (2.73) (1.87) (1.37) (1.01) (0.53) (1.04)
Free cash flow 14.59 14.96 13.27 14.68 17.71 12.41 10.19 14.27 14.05 13.11
Book value 19.25 19.00 18.56 23.65 23.28 21.20 24.40 24.82 29.72 35.12
Shares, m 955 933 912 887 890 896 903 911 922 932
Valuation, ×
Valuation, × P/E 12.85 24.02 11.36 12.04 19.19 20.85 78.20 19.65 33.66 26.10
P/S 1.91 1.74 1.25 1.97 1.94 2.09 2.11 2.38 3.23 4.09
P/B 8.30 7.76 5.85 5.42 5.17 6.30 5.80 6.51 7.40 8.43
EV/Sales 2.33 2.17 1.67 2.90 2.80 2.86 2.81 3.08 3.87 4.78
EV/FCF 13.37 12.29 10.97 12.87 9.78 14.74 18.47 14.63 18.74 26.42
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
Capex (3,143) (2,769) (3,147) (1,749) (2,430) (1,675) (1,235) (924) (491) (970)
Free cash flow 13,941 13,955 12,100 13,021 15,767 11,121 9,200 13,007 12,954 12,223
Balance, $m
Balance, $m Working capital 7,613 12,372 10,919 719 (704) (4,080) (2,387) (1,214) 1,340 (1,714)
Total debt 42,168 46,824 45,812 62,899 61,333 51,704 50,949 56,547 54,973 61,260
Net debt 33,641 33,982 33,590 53,890 47,082 44,147 42,108 43,085 40,168 46,789
Shareholders’ equity 18,392 17,725 16,929 20,985 20,727 18,996 22,021 22,613 27,393 32,740
Returns, %
Returns, % ROA 10.42 4.74 7.02 6.84 3.63 3.99 1.26 5.72 4.42 7.33
ROIC 14.32 14.11 15.08 5.76 3.73 6.19 7.32 8.11 7.76 8.53
ROE 72.36 31.86 50.37 49.75 26.80 28.92 7.99 33.61 24.09 35.23
Negative figures in brackets.

All 10 years →

Fiscal years to Dec 2025 · latest quarter Jun 2026

Charts ten years each

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 $220.6B 20.3× 27.7× +1.09% (above 0%: growing) −2.54% (below 0%: shrinking) +56.48% (above 0%: growing) 57.73% 15.24%
ACN Accenture PLC $137.6B 16.7× 12.0× +6.15% (above 0%: growing) +48.93% (above 0%: growing) −25.25% (below 0%: shrinking) 32.04% 15.33% Compare
INFY American Noble Gas Inc. $49.2B 15.1× 19.1× +2.85% (above 0%: growing) 0.00% +8.03% (above 0%: growing) 31.48% 21.09% Compare
CTSH Cognizant Technology Solutions Corporation $29.6B 14.2× 9.8× +4.50% (above 0%: growing) +3.82% (above 0%: growing) +38.67% (above 0%: growing) 33.37% 15.95% Compare
FISV Fiserv, Inc. $25.1B 9.1× 9.5× −4.06% (below 0%: shrinking) −37.10% (below 0%: shrinking) −16.95% (below 0%: shrinking) 19.07% 19.18% Compare
BR Broadridge Financial Solutions, Inc. $19.7B 18.0× 16.9× +7.49% (above 0%: growing) +8.46% (above 0%: growing) −3.21% (below 0%: shrinking) 38.43% 24.61% Compare
CDW CDW Corporation $19.3B 18.0× 14.9× +9.97% (above 0%: growing) +4.85% (above 0%: growing) −161.92% (below 0%: shrinking) 20.08% 6.52% Compare
FIS Fidelity National Information Services, Inc. $18.6B 5.5× 6.1× +29.09% (above 0%: growing) n/m +45.12% (above 0%: growing) 34.76% 15.01% Compare
WIT Wipro Limited $18.5B 16.3× — +0.15% (above 0%: growing) −25.00% (below 0%: shrinking) −30.13% (below 0%: shrinking) 28.54% 16.01% Compare
Median of peers $22.4B 15.7× 12.0× +5.33% +3.82% −10.08% 31.76% 15.98%

All 73 Information Technology Services stocks →

IBM metrics, ten years each

International Business Machines Corporation (IBM) key facts

  • Strength: International Business Machines Corporation’s revenue for fiscal 2025 (year ended December 2025) was $67.5 billion, up 7.62% from fiscal 2024.
  • Strength: Net income was $10.6 billion, or $11.36 per share (basic), a net margin of 15.7%.
  • International Business Machines Corporation (IBM) is an Information Technology Services company in the Technology sector, listed on the New York Stock Exchange.
  • As of October 16, 2026, IBM traded at $232.56, a market capitalization of $220.6 billion.
  • At that price the stock trades at 20.3× trailing-twelve-month earnings and 3.2× sales; its P/E is higher than 49% of its own readings over the past ten years.
  • International Business Machines Corporation pays an annual dividend of $6.74 per share, a yield of 2.90%, with a payout ratio of 59.8%.
  • Return on equity was 35.2% and debt-to-equity 1.79.
  • Its Piotroski F-score is 6 out of 9 and its Altman Z-score is 3.49 (safe zone) for fiscal 2025.

Source: company filings (standardised) and stockrow calculations.

Financial Analysis (summary)

Updated

IBM reported revenue of $67.5 billion in FY2025, with net income of $10.6 billion and diluted EPS of $11.17 in FY2025. Revenue in the TTM to Q2 FY2026 was $69.1 billion, while net income was $10.7 billion and free cash flow was $13.8 billion in the TTM to Q2 FY2026.

In Q2 FY2026, revenue was $17.2 billion, operating income was $2.6 billion, and diluted EPS was $2.27. Net debt was $53.8 billion in Q2 FY2026. The Q2 FY2026 result included year-over-year revenue growth, while gross margin and operating margin were lower than a year earlier.

International Business Machines Corporation (IBM) Latest News

13 Oct

stockrow.com/IBM · Data as of Jun 30, 2026 · For information only; not investment advice. · © 2026 stockrow.com