GuruFocus·12h ago
IBM Stocks Fall 1.6% as Bob Moves Behind Customer FirewallsIBM, the hybrid-cloud and enterprise-AI company (IBM), introduced self-hosted deployment for its Bob AI development platform on October 1, allowing customers to
IBM is demonstrating a structural shift toward higher-margin software and recurring revenue, evidenced by a gross margin expansion to 57.7% in Q2 2026, which appears to be a primary driver of underlying profitability. However, this operational progress is offs...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
IBM's income statement reflects a mixed trajectory, with volatile revenue growth (0.6% to 12.2% YoY) but a clear structural improvement in profitability, as gross margins have expanded by 420 basis points from 53.5% in Q1 2024 to 57.7% in Q2 2026.
Analysts have a median price target of $282.50 for IBM, indicating significant upside potential from current trading prices.
IBM's software segment has demonstrated a 10% year-over-year growth, aligning with management's goals for margin expansion.
The company's strategic emphasis on higher-margin software and AI services is expected to drive revenue growth.
Some analysts suggest IBM may be overvalued, with discounted cash flow analysis indicating a fair value significantly lower than current prices.
IBM faces significant competition from major cloud providers like Microsoft, Amazon, and Google, which could limit its growth.
There are nearer-term execution risks regarding IBM's ability to monetize its AI and quantum computing investments at scale.
Trailing total returns as of 10/3/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 22, 2026 | $2.93+0.0% vs $2.93 | $17.2B-1.7% vs $17.5B |
Q2 2026 Apr 22, 2026 | $1.91+5.5% vs $1.81 | $15.9B+1.8% vs $15.6B |
Q1 2026 Jan 28, 2026 | $4.52+4.9% vs $4.31 | $19.7B+2.6% vs $19.2B |
Q4 2025 Oct 22, 2025 | $2.65+8.2% vs $2.45 | $16.3B+1.5% vs $16.1B |
IBM, the hybrid-cloud and enterprise-AI company (IBM), introduced self-hosted deployment for its Bob AI development platform on October 1, allowing customers to
In the most recent trading session, IBM (IBM) closed at $225.57, indicating a +2.56% shift from the previous trading day.
ARMONK, N.Y., Oct. 1, 2026 /PRNewswire/ -- The IBM (NYSE: IBM) board of directors has elected Frank Baker to the board, effective October 1, 2026.
IBM's stock has dropped 22% over the last three months, but the weakness traces to a cyclical mainframe lull. Big Blue's generative AI consulting book has reached $5.5 billion.
Benchmark IBM against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for International Business Machines Corporation (IBM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $222.64 | $209.76B | 19.93 | 7.62% | 15.68% | 35.23% | 2.96% | |
| $198.90 | $121.72B | 16.37 | 7.36% | 11.38% | 26.02% | — | |
| $69.35 | $91.83B | -1554.93 | 14.06% | 6.57% | 10.85% | — | |
| $11.10 | $1.8B | 111.00 | -1.76% | 0.99% | 3.73% | — | |
| $58.51 | $26.36B | 12.86 | 6.95% | 10.26% | 14.94% | — | |
| $11.04 | $44.8B | 13.30 | 4.57% | 16.38% | 32.84% | — |
International Business Machines Corporation (IBM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
International Business Machines Corporation (IBM) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 14, 2026·SEC
Jul 22, 2026·SEC
Jul 14, 2026·SEC
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International Business Machines Corporation (IBM) stock FAQ — growth, dividends, profitability & financials explained
International Business Machines Corporation (IBM) reported $69.10B in revenue for fiscal year 2025. This represents a 6% decrease from $73.42B in 1996.
International Business Machines Corporation (IBM) grew revenue by 7.6% over the past year. This is steady growth.
Yes, International Business Machines Corporation (IBM) is profitable, generating $10.72B in net income for fiscal year 2025 (15.7% net margin).
Yes, International Business Machines Corporation (IBM) pays a dividend with a yield of 2.96%. This makes it attractive for income-focused investors.
International Business Machines Corporation (IBM) has a return on equity (ROE) of 35.2%. This is excellent, indicating efficient use of shareholder capital.
International Business Machines Corporation (IBM) generated $13.96B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
