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International Business Machines Corp (IBM)

Fair Value
TechnologyInformation Technology ServicesUnited States

Fundamental

61

Price

$253.56

Market Cap

$236.91B

Part 1 · What the company is worth

Overview

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions. The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services. It operates a data streaming platform. The company has strategic partnerships with various companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors that include Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. It also has a strategic collaboration with Arm Holdings plc for the development of new dual-architecture hardware that helps enterprises run future AI and data intensive workloads; strategic partnership with three.ws to advance ai-powered 3d agent technology; and collaboration with Lightwell to help strengthen open source software supply chain. Additionally, it offers operational resilience, logistics, and future-ready technology to the UK Ministry of Defence through Team ORION. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Compare

Generated with artificial intelligence on September 18, 2026, shared with all users

P/E: 29.2Score: 78Market cap: $3.93T

Microsoft competes with IBM's Software segment across hybrid-cloud platforms, data and automation software and enterprise AI assistants, chasing the same IT budgets inside large corporate data centres.

P/E: 19.8Score: 66Market cap: $390.46B

Oracle is a principal competitor of IBM's Software segment in databases, middleware and enterprise applications, and increasingly in the cloud infrastructure those workloads run on.

P/E: 29.2Score: 67Market cap: $77.22B

HPE is a principal competitor of IBM's Infrastructure segment, selling enterprise servers, storage and hybrid-cloud hardware to the same corporate data-centre buyers.

Accenture plcACN

IBM names Accenture first among the broad-based rivals of its Consulting segment: both sell systems integration, application management and large digital-transformation programmes to the same global enterprise and public-sector clients.

Infosys LimitedINFY

Infosys is one of the India-based service providers IBM cites as Consulting competitors: it bids for the same application development, managed services and outsourcing contracts, typically on price and delivery scale.

Capgemini SECAP

Capgemini is named by IBM among its Consulting rivals and competes head-on for European enterprise IT services and systems-integration mandates.

Balance Sheet & Liquidity

Revenue

$69.10B

Trailing 12 months (through 6/30/2026)

Net Income

$10.72B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$12.10B

Total Equity

$32.65B

Total Liabilities

$119.14B

Current Ratio

0.79

Interest Coverage

-

Debt/EBITDA

4.31

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$299.52

Current Price

$253.56

Margin of Safety

+15.3%

Fair Value Range

$194.69 - $404.36

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$243.09
Discounted cash flow (DCF):$517.26
Earnings multiple (P/E):$209.90
Graham growth formula:$342.62
Earnings power value (EPV):$97.87
Justified P/B:$212.43
Dividend discount (Gordon):$144.26
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:Not enough data to compute it
Revenue multiple:$390.78
Last Earnings Surprise:+2.20%

Valuation Metrics

P/E Ratio

22.46

ROE

32.4%

P/B Ratio

6.93

P/FCF

17.32

Gross Margin

58.1%

ROIC

-

Profitability Radar

Value Creation (Economic Moat)

ROIC

-

WACC

7.3%

ROIC − WACC

-

Fundamental Analysis Criteria

Passed (15)

  • EPS shows upward trend
  • Gross margin 58.1%
  • P/FCF 17.32
  • Debt/equity ratio
  • Positive free cash flow
  • CapEx intensity
  • Current ratio
  • Debt/EBITDA
  • Return on tangible assets
  • ROE 33.5%
  • PEG ratio 1.74
  • Earnings quality (operating cash flow / net income) 1.39
  • Share dilution 1.2%
  • Net margin trend 15.5% vs 9.1%
  • Piotroski F-Score 6/9

Failed (8)

  • EPS CAGR 2.51%
  • Price CAGR 3.69%
  • P/B ratio 6.93
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Fairly Valued)
  • Revenue growth 5Y 4.1%
  • Earnings surprise, average 2.1%

Unavailable (4)

  • ROIC –
  • Dividend payout –
  • Operating margin –
  • Interest coverage

Piotroski F-Score

6/9

Mixed signals: some areas need attention

ROA > 0
Operating cash flow > 0
ΔROA > 0
Cash flow > net income
Leverage ↓
Current ratio ↑
No dilution
Gross margin ↑
Asset turnover ↑

Earnings Quality

1.39

High quality: earnings backed by cash

Share Dilution

1.2%

Share count is stable

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Arvind KrishnaCEO, President & Chairman62
Mr. James J. KavanaughCFO and Senior VP of Finance & Operations58
Ms. Anne E. RobinsonSenior VP & Chief Legal Officer54
Mr. Robert D. ThomasSenior VP of IBM Software & Chief Commercial Officer76
Mr. Gary D. CohnExecutive Vice Chairman64
Olympia McNerneyGlobal Head of Investor Relations-
Ms. Nickle Jaclyn LaMoreauxSenior VP & Chief Human Resources Officer45
Dr. Bernard S. Meyerson Ph.D.Chief Innovation Officer Emeritus-
Mr. Alexander Franz SternSenior Vice President of Strategy and Mergers & Acquisitions59
Mr. Kirill KornilievVP of Sales and Head of The Industry Solutions Area In Central & Eastern Europe-

Audit Risk

8

Board Risk

7

Compensation Risk

3

Shareholder Rights Risk

4

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-24

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-10-22

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-10-21

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Part 2 · The price and its context

This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Market Reaction Profile

How much IBM moves, measured on its daily prices.

VolatilityHigh

More volatile than 85% of the tracked stocks (90-day volatility).

Volatility 30d
29.9%
Volatility 90d
59.8%
Beta vs S&P 500 (1y)
0.88Correlation 0.23
Max drawdown (12m)
-37.5%
ATR (14d, % of price)
2.97%

Earnings reactions

How IBM moved around its past quarterly results.

Next earnings release

No upcoming release on the calendar.

What usually happens

  • Over the last 12 releases the stock moved a median of 6.4% the next day, up or down.
  • Next-day moves: up 6, down 6 (out of 12).
  • Of the 4 releases that beat estimates, the stock fell the next day after 2.

Release history

DateWhen EPS est.EPS actualSurprise Gap 1 day5 days
Oct 21, 2026After the close2.872.95+2.7% -4.1% +0.3% n/a
Jul 22, 2026After the close3.002.93-2.3% -1.5% +0.4% +10.0%
Apr 22, 2026After the close1.821.91+4.7% -7.8% -8.3% -9.8%
Jan 28, 2026After the close4.364.52+3.6% +8.1% +5.1% -1.7%
Oct 22, 2025After the close2.472.65+7.3% -7.8% -0.9% +7.2%
Jul 23, 2025After the closen/an/an/a-7.4% -7.6% -7.7%
Apr 23, 2025After the closen/an/an/a-5.8% -6.6% -1.5%
Jan 29, 2025After the closen/an/an/a+9.3% +13.0% +15.2%
Oct 23, 2024After the closen/an/an/a-5.1% -6.2% -12.0%
Jul 24, 2024After the closen/an/an/a+1.5% +4.3% +4.4%
Apr 24, 2024After the closen/an/an/a-8.6% -8.3% -10.7%
Jan 24, 2024After the closen/an/an/a+6.3% +9.5% +5.6%

Release dates from SEC 8-K filings.

Updated 10/24/2026

Historical statistics for educational purposes only. They are not forecasts and not investment advice.

Price reaction to the news

Latest news on IBM and what the price did next.

Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.

Latest News

Recent headlines for IBM.

  • 2d agoNEGATIVE
    IBM, vendite sul titolo all'indomani della trimestrale

    International Business Machines (IBM) experienced a sell-off in its stock following the release of its third-quarter earnings report. While specific revenue figures for the consulting sector were not detailed in the provided snippet, the market reaction suggests investor disappointment. This downturn indicates potential concerns regarding the company's performance or future outlook, prompting a reassessment of its valuation by market participants. Investors will be closely monitoring subsequent analyst reports and company guidance for further clarity on the underlying issues.

  • 5d agoNEGATIVE
    Anteprima utili IBM: opzioni scontano mossa a $215 o $240

    International Business Machines (IBM) is set to release its earnings report, with market participants anticipating significant price movements. The stock experienced a severe decline following its previous quarterly results, which missed expectations and led to a drop to $211 and subsequently $197. The company cited persistent pressure on demand for its products, particularly software, where revenue growth was only 5% to $7.8 billion. Investors will be closely watching the upcoming report for signs of demand recovery and future growth prospects, as the previous earnings report significantly impacted Wall Street's sentiment.

  • 23d agoPOSITIVE
    Le azioni IBM guadagnano grazie ad Accenture

    IBM shares saw a significant uptick, climbing as much as 5% on Thursday, buoyed by the strong performance of Accenture. Accenture's impressive quarterly results, with revenues of $9.28 billion exceeding analyst expectations of $8.86 billion, and an upward revision of its full-year forecast, have positively impacted sentiment across the IT consulting sector. This positive spillover effect, coupled with IBM's own announcement of a self-hosted distribution option for its IBM Bob software agent platform, suggests renewed investor confidence in IBM's growth prospects and its position within the resilient IT services market.

  • 29d agoPOSITIVE
    IBM Connects Banks To Swift’s Blockchain Ledger For Tokenized Deposits

    IBM has integrated its Digital Asset Haven with Swift's blockchain-based shared ledger, enabling financial institutions to conduct tokenized deposit transactions using existing ISO 20022 payment messages. This beta integration allows banks to leverage familiar messaging formats, reducing a key obstacle to blockchain adoption. Swift's ledger, already being tested by 17 institutions, facilitates 24/7 transactions for bank-issued tokenized deposits. IBM is also offering an on-premises version of Digital Asset Haven for enhanced control. This development positions tokenized deposits as a viable, operationally familiar blockchain solution for banks, potentially driving significant adoption.

  • 9/24/2026POSITIVE
    IBM opens beta Swift ledger link for 24/7 tokenized deposits

    IBM has launched a beta program for its Swift ledger link, enabling banks to execute tokenized deposit transfers around the clock. This new functionality integrates seamlessly with existing payment messages and compliance frameworks, leveraging SWIFT's established infrastructure. The innovation aims to streamline cross-border transactions and enhance liquidity management for financial institutions. For investors, this development signals IBM's continued push into blockchain and distributed ledger technology within the financial sector, potentially opening new revenue streams and solidifying its position as a key technology provider for banks.

  • 9/8/2026POSITIVE
    Is IBM’s selloff an opportunity? Here’s one case for the beaten-down stock.

    An analyst from Evercore ISI suggests that the current selloff in IBM stock presents a buying opportunity, as investors are effectively gaining exposure to the company's quantum computing initiatives at no additional cost. This perspective highlights the potential undervaluation of IBM's advanced technology segments, which could drive future growth and shareholder value. The analyst's view implies that the market may be overlooking the long-term strategic importance and potential profitability of IBM's quantum computing research and development efforts, making the stock attractive for investors seeking growth at a discount.

  • 8/10/2026NEUTRAL
    IBM Turns to Canadian Bond Market for First Time Since 2012

    International Business Machines Corp. has tapped the Canadian bond market for the first time since 2012, participating in a record year for foreign debt issuance in Canada. This move indicates IBM's strategy to diversify its funding sources and potentially leverage favorable borrowing conditions in the Canadian market. While the issuance itself is a routine corporate finance activity, it signals IBM's ongoing financial management and operational scale. Investors will monitor the terms of the debt and its impact on IBM's capital structure and cost of borrowing.