International Business Machines Corp (IBM)
Information Technology · IT Consulting & Other Services · US stock · S&P 500 component
$253.56
▲ +1.45 (0.58%)
Fair valueFair
$218 −13.5% to fair value
$109fair band $186–$264$327
Day's range
$247.03 – $254.71
52-week range
$199.19 – $332.46
About International Business Machines Corp
Known as IBM, International Business Machines provides hybrid cloud software, artificial intelligence tools, consulting services and computing infrastructure. Its customers are mainly large companies and public sector bodies, which use IBM to modernise software, run critical systems and move to the cloud. The business is organised into software, consulting and infrastructure divisions, and it owns the Red Hat open-source software business.
IBM earns revenue from software licences and subscriptions, consulting projects, and infrastructure systems with related support. Revenue over the last twelve months was $69.1 billion, and it has grown at 3.7% a year across the last three years. The operating margin is 17.9%, and the business earns a profit of 12% on the capital invested in it. It carries net debt of 4.9 times EBITDA. A dividend is paid, with a yield of 2.7%. On the site's X-Ray Score it receives 43 out of 100.
Price chart
52-wk range $199.19 – $332.46Volume 5,886,234Daily, split-adjusted
Vitals
Market cap$241.7B
52-week range$199.19 – $332.46
Volume (last day)5,886,234
P/E (TTM)22.5
EBIT / EV yield4.1%
Free-cash-flow yield5.7%
Dividend yield2.7%
Revenue (TTM)$69.1B
Net income (TTM)$10.7B
Operating margin17.9%
Return on capital11.7%
Debt incl. leases$67.8B
Cash & securities$7.2B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$218middle half of models $206 – $247
Fair
−13.5% to fair value
Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Peak-cycle earnings: the current operating margin is more than 1.5x its 7-year average, so multiples applied to today's profit may overstate value; model uncertainty is set to High
Price $254
Undervalued < $186Fair $186 – $264Overvalued > $264
P/E multiple
$258
P/B multiple
$241
P/S multiple
$210
EV/EBITDA multiple
$236
EV/EBIT multiple
$260
EV/revenue multiple
$210
10-year DCF, EBITDA exit
$227
5-year DCF, EBITDA exit
$253
10-year DCF, revenue exit
$221
5-year DCF, revenue exit
$239
10-year DCF, growth exit
$112
5-year DCF, growth exit
$110
Dividend discount, stable
$202
Dividend discount, multi-stage
$364
Earnings power value
$128
Growth the price implies
16.7%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
57/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield4.1%
Free-cash-flow yield5.7%
Fair value vs price0.9×
Growth
Fair
54/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)3.7%
EPS growth (3y)83.8%
Growth consistency100%
Profitability
Weak
35/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital11.7%
Operating margin17.9%
Gross profitability26.4%
Financial health
Weak
21/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score5 / 9
Net debt / EBITDA4.9×
Interest cover6.4×
Dividends
Fair
51/100
Dividend is typical for its sector.
See the numbers →
Dividend yield2.7%
Dividends vs free cash flow47%
Dividend growth1.7%
Quarterly results: last 6 quarters
+0.5%
Mar '25
+7.7%
Jun '25
+9.1%
Sep '25
+12.1%
Dec '25
+9.5%
Mar '26
+1.1%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $17.2B, diluted EPS $2.27.
Compare with peers
CTSH Cognizant Technology S...63 ACN Accenture plc62 IT Gartner Inc59Other IT Consulting & Other Services companies by X-Ray Score.
SWOT analysis: International Business Machines Corp
Strengthsinside the company
- Earnings per share have compounded at 83.8% a year over three years.
- Free cash flow equals 5.7% of the market value, which funds dividends, buybacks or debt paydown.
Weaknessesinside the company
- Return on invested capital of 11.7% is well below the 26.5% median of industry peers.
- Net debt is 4.9x EBITDA, above the 3x level that lenders usually watch.
Opportunitiesvaluation and setting
- Dividends use only 47% of free cash flow, which leaves room to raise them.
- Our Market Compass rates the backdrop for Information Technology as favourable.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare IBM with peers and sector
Medians of 3 IT Consulting & Other Services peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): ACN 62, CTSH 63, IT 59.
| Metric | IBM | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 43 | 62 | 50 |
| Valuation | 57 | 88 | 50 |
| Growth | 54 | 28 | 54 |
| Profitability | 35 | 62 | 50 |
| Financial health | 20 | 54 | 50 |
| Dividends | 51 | – | 50 |
Sector leaders: highest X-Ray Score in Information Technology
IBM ranks #54 of 75 in Information Technology and #4 of 4 in IT Consulting & Other Services by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for IBM
Each factor is rated by where IBM stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 6 Good · 9 Average · 8 Bad of 23
Growth: 1 · 0 · 2
Profitability: 0 · 4 · 1
Financial strength: 0 · 0 · 4
Valuation: 3 · 2 · 0
Cash flow: 0 · 3 · 1
Efficiency: 2 · 0 · 0
| Factor | IBM | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +3.7% | Bad beats 33% | +9.7% | – | – |
| Revenue growth, last year | +7.6% | Bad beats 23% | +13.7% | +3.9% | ▲ Better |
| EPS growth, 3 years a year | +83.8% | Good beats 96% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 58.1% | Average beats 51% | 57.8% | 55.4% | ≈ In line |
| Operating margin | 17.9% | Average beats 45% | 20.3% | 12.0% | ▲ Better |
| Net margin | 15.5% | Average beats 43% | 17.8% | 10.0% | ▲ Better |
| Return on invested capital | 11.7% | Bad beats 30% | 19.4% | – | – |
| Return on equity | 31.1% | Average beats 65% | 21.0% | 30.4% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 4.9x | Bad beats 1% | 0.8x | 6.1x | ▲ Better |
| Interest cover | 6.4x | Bad beats 10% | 23.0x | 5.2x | ▲ Better |
| Current ratio | 0.79 | Bad beats 11% | 1.57 | 0.96 | ▼ Worse |
| Piotroski F-score | 5 / 9 | Bad beats 21% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 22.4x | Good beats 70% | 33.6x | 26.5x | ▲ Better |
| Price / book | 7.0x | Average beats 55% | 8.3x | 6.7x | ≈ In line |
| Price / sales | 3.5x | Good beats 75% | 6.9x | 2.4x | ▼ Worse |
| EV / EBITDA | 24.3x | Average beats 51% | 24.7x | 28.8x | ▲ Better |
| Free cash flow yield | 5.7% | Good beats 82% | 3.4% | 7.1% | ▼ Worse |
| Cash flow | |||||
| Free cash flow margin | 20.0% | Average beats 35% | 22.3% | 18.7% | ≈ In line |
| Cash from operations / net income | 1.39 | Average beats 49% | 1.39 | 2.23 | ▼ Worse |
| Free cash flow growth, 3 years a year | +10.0% | Average beats 42% | +15.4% | – | – |
| Accruals (lower is better) | −2.7% | Bad beats 33% | −4.4% | – | – |
| Efficiency | |||||
| Inventory turnover | 16.6x | Good beats 89% | 3.9x | 21.1x | ▼ Worse |
| Days sales outstanding | 32 days | Good beats 88% | 63 days | 43 days | ▲ Better |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 3 Good · ● 7 Average · ● 6 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldGood
Risk models
Altman Z''Average
Piotroski F-ScoreBad
Growth
EPS growth (3y)Good
Free-cash-flow growth (3y)Average
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverBad
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalBad
Operating marginAverage
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 43/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $57.4B | $60.5B | $61.9B | $62.8B | $67.5B |
| Operating income | $6.0B | $2.4B | $10.3B | $7.5B | $12.3B |
| Net income | $5.7B | $1.6B | $7.5B | $6.0B | $10.6B |
| Operating cash flow | $12.8B | $10.4B | $13.9B | $13.4B | $13.2B |
| Operating margin | 10.4% | 3.9% | 16.6% | 12.0% | 18.2% |
| Free cash flow | $10.7B | $9.1B | $12.7B | $12.4B | $12.1B |
| Diluted EPS | $6.35 | $1.80 | $8.14 | $6.43 | $11.17 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
12 bullish · 0 neutral · 4 bearish
Weekly
Strongly bullish
9 bullish · 1 neutral · 2 bearish
Monthly
Bullish
5 bullish · 1 neutral · 2 bearish
Moving averages (daily)
| SMA 10 | 238.7 | Bullish |
| EMA 10 | 241.4 | Bullish |
| SMA 20 | 230.7 | Bullish |
| EMA 20 | 236.1 | Bullish |
| SMA 50 | 233.0 | Bullish |
| EMA 50 | 234.7 | Bullish |
| SMA 100 | 242.6 | Bullish |
| EMA 100 | 238.8 | Bullish |
| SMA 200 | 248.2 | Bullish |
| EMA 200 | 245.4 | Bullish |
Oscillators (daily)
| RSI (14) | 71.22 | Bearish |
| MACD (12, 26) | 4.79 | Bullish |
| Momentum (12) | 14.99 | Bullish |
| Stochastic %K (14) | 92.88 | Bearish |
| Williams %R (14) | -7.12 | Bearish |
| CCI (20) | 185.8 | Bearish |
Pivot points (classic, last session)
S3 241.1 | S2 244.1 | S1 248.8 | Pivot 251.8 | R1 256.5 | R2 259.4 | R3 264.2 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
6.74 USD
Yield on today's price
2.66%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 1.6900 | |
| 1.6900 | |
| 1.6800 | |
| 1.6800 | |
| 1.6800 | |
| 1.6800 | |
| 1.6700 | |
| 1.6700 | |
| 1.6700 | |
| 1.6700 | |
| 1.6600 | |
| 1.6600 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold IBM
| ETF | Share of the fund |
|---|---|
| TDIV First Trust NASDAQ Technology Dividend... | 8.09% |
| DIVO Amplify CWP Enhanced Dividend Income | 3.75% |
| DIVB iShares U.S. Dividend and Buyback | 3.74% |
| SKYY First Trust Cloud Computing | 3.70% |
| IVES Dan IVES Wedbush AI Revolution | 3.50% |
| AIPI REX AI Equity Premium Income | 3.23% |
| DDM ProShares Ultra Dow30 | 2.58% |
| ARTY iShares Future AI & Tech | 2.55% |
The eight funds with the largest weight in IBM among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
IBM stock splits
IBM has split its stock 2 times since 1997. The latest was a 2-for-1 split on 27 May 1999.
Full IBM stock split history →IBM SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Current report
424B5SEC EDGAR
424B5
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.