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IBMInternational Business Machines Corporation
$245.00$230.8B
Overview & Tools
OverviewChart Terminal ↗AnalysisVisualize
Valuation & Forecasts
Valuation ModelsEstimatesDCF Model
Price & Analyst Data
Analyst TargetsPrice History
Financial Statements
Income StatementBalance SheetCash FlowRatios & Margins
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P/E HistoryRevenue HistoryEarnings HistoryDividend HistoryTotal Return
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IBM logo

International Business Machines Corporation

IBM
NYSE · Enterprise Software
$245.00
At close - USD
Market Cap$230.82B
P/E21.9x
52W High$332.46
Volume3.46M
OverviewTerminalAnalysisFinancialsValuationEarningsBreakoutsOwnership
VCP Research Verdict2026Q2

Software-Driven Margin Growth Contrasted by Elevated Net Debt

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.

GrowthMixed
ProfitabilityModerate
ValuationExpensive
TechnicalsWeak
Explore valuation models
MARKET ACTION

IBM price & volume

Price trend, volume and key moving averages

Launch Terminal
Loading chart...
Decision Checklist4 Core Signals

What matters now

The signals most likely to change the investment case.

01

Earnings momentum

11/12 Beats

EPS beat 11 of last 12 quarters

02

Valuation risk

-34% Peers

P/E is 34% below peer median

03

Market leadership

RS 64 · Avg

Average momentum (RS Rating: 64)

04

Weak Trend

Below 200DMA

Price < 200DMA

Next CatalystEstimated earnings · Jan 21
01

Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis
Fundamental Trajectory

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.

Analyst Consensus+11.2% target
Buy(52 analysts)
24 Buy23 Hold5 Sell

The Bull Case

Upside Catalysts

Strong Price Target Upside

Analysts have a median price target of $282.50 for IBM, indicating significant upside potential from current trading prices.

Growth in Software Segment

IBM's software segment has demonstrated a 10% year-over-year growth, aligning with management's goals for margin expansion.

Focus on High-Margin Services

The company's strategic emphasis on higher-margin software and AI services is expected to drive revenue growth.

The Bear Case

Key Downside Risks

Concerns Over Valuation

Some analysts suggest IBM may be overvalued, with discounted cash flow analysis indicating a fair value significantly lower than current prices.

Competitive Pressures

IBM faces significant competition from major cloud providers like Microsoft, Amazon, and Google, which could limit its growth.

Execution Risks in AI

There are nearer-term execution risks regarding IBM's ability to monetize its AI and quantum computing investments at scale.

Market performance

Price History →

Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return
IBM-14.22%
S&P 500 (^GSPC)+7.63%
1-Year Return
IBM-19.42%
S&P 500 (^GSPC)+9.69%
3-Year Return
IBM+77.96%
S&P 500 (^GSPC)+67.40%
5-Year Return
IBM+123.46%
S&P 500 (^GSPC)+55.53%
02

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis
Trailing P/E5Y Low
20.9x
Forward P/EExpansion
19.7x
EV/EBITDA60th %ile
15.9x
FCF YieldCash Flow
6.2%

Valuation vs 5-Year History

Multiple Range
Metric
Current
5Y Median
Historical Range
Percentile
P/E
20.9x
26.5x
20th· Low
EV/EBITDA
15.9x
13.9x
60th· Fair
Price/FCF
16.1x
15.2x
60th· Fair
Current Multiple
5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection
Bear$215.88-11.9%
Base (Fair)$419.06+71.0%
Bull$747.46+205.1%
$215.88 Bear$419.06 Base$747.46 Bull
Current Market Price: $245.00
Trades at a 41.5% discount to Base DCF ($419.06)
Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend
Revenue FY25
$67.54B+7.6% YoY
Net income FY25
$10.59B+75.9% YoY
Free cash flow FY25
$11.57B-1.6% YoY
Operating margin FY25
18.5%+2.4 pts YoY
ROIC (FY25)11.9%
Avg ROIC 5Y-
ROE (FY25)35.2%
Piotroski Score5 / 9
Financial Statements →
03

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History
EPS Beat Rate11/12 (92%)
Revenue Beat Rate8/12 (67%)
QuarterEPS (Act vs Est)Revenue (Act vs Est)
Q4 2026Latest
Oct 21, 2026
$2.95+3.5%
vs $2.85
$17.1B+1.7%
vs $16.8B
Q3 2026
Jul 22, 2026
$2.93-0.7%
vs $2.95
$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
Historical baseline: 12 quarters analyzedGAAP / Adjusted
MARKET COVERAGE

Latest News

4 Stories
PRNewsWire·1d ago
IBM Unveils Its Most Advanced Quantum Computer in Chicago, Marking a Milestone for Illinois's Quantum Future

Hosted by the University of Chicago, IBM Quantum System Two is now operational at Hyde Park Labs and will be a prominent fixture of Illinois Quantum and Microelectronics Park (IQMP) upon the site's completion. IBM's first quantum computer in Illinois extends the company's industry and academic partnerships across the state, enabling the Illinois ecosystem and beyond to scale quantum algorithms and applications.

Barrons·1d ago
IBM Stock Could Be More Than a ‘Safe Haven.' Quantum Computing Is a Big Reason.

Evercore's sum-of-the-parts analysis values IBM at $290 a share, above its $275 price target.

Zacks Investment Research·1d ago
Is Most-Watched Stock International Business Machines Corporation (IBM) Worth Betting on Now?

IBM (IBM) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

24/7 Wall Street·1d ago
5 High-Yield Dividend Stocks That Could Hold Up When the Market Falls

Drugs, software, cereal, and electricity keep selling when the economy stalls. Five dividend payers pass a coverage test, but one carries a payout stretched thin and another faces a regulatory hearing that could change its income story.

Filtered for International Business Machines CorporationMore Headlines
04

Compare before deciding

Benchmark IBM against direct peers instead of judging its metrics in isolation.

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
$245.00$230.82B21.937.62%15.68%35.23%2.69%
ACN logoACNAccenture plc
$260.50$159.41B21.447.36%11.32%25.66%2.25%
HPE logoHPEHewlett Packard Enterprise Company
$44.76$59.26B-1003.4814.06%6.57%10.85%1.34%
DXC logoDXCDXC Technology Company
$14.86$2.41B148.60-1.76%0.91%3.38%—
CTSH logoCTSHCognizant Technology Solutions Corporation
$64.72$29.15B14.226.95%11.75%17.36%1.96%
INFY logoINFYInfosys Limited
$12.50$50.72B15.064.57%16.21%33.72%4.27%

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

05

Keep researching

Verify the primary filings, follow material updates, and answer the remaining questions.

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

Oct 21, 2026·SEC

Material company update

Oct 1, 2026·SEC

Material company update

Aug 14, 2026·SEC

10-K Annual Reports

2
FY 2026

Feb 24, 2026·SEC

FY 2025

Feb 25, 2025·SEC

10-Q Quarterly Reports

6
FY 2026

Oct 22, 2026·SEC

FY 2026

Jul 23, 2026·SEC

FY 2026

Apr 23, 2026·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 $69.87B in revenue over the trailing twelve months. Revenue was $67.54B in fiscal year 2025. That is 8% less than the $73.42B of fiscal year 1996.

How fast is International Business Machines Corporation growing?

International Business Machines Corporation (IBM) grew revenue by 7.6% in fiscal year 2025, compared with the prior fiscal year.

Is IBM profitable?

Yes. International Business Machines Corporation (IBM) earned $11.17B in net income over the trailing twelve months (a 16.0% net margin).

Dividend & Returns
Does IBM pay dividends?

Yes. International Business Machines Corporation (IBM) pays a dividend that yields 2.69% at the current price, a moderate yield.

What is IBM's return on equity?

International Business Machines Corporation (IBM) had a return on equity (ROE) of 35.2% in fiscal year 2025. That is well above the market's typical 10-15%.

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

International Business Machines Corporation (IBM) generated $13.82B in free cash flow over the trailing twelve months.

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

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

See returns →