IBM
SP100NYSEInternational Business Machines Corporation
Technology · Information Technology Services · United States
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. Its Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services. It 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. Additionally, the company operate a data streaming platform. The company 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; and strategic partnership with three.ws to advance ai-powered 3d agent technology; has a collaboration with Lightwell to help strengthen open source software supply chain. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
www.ibm.com ↗Shares trade at a premium 25.6× trailing earnings, easing to 21.5× on forward estimates. Profitability shows a net margin of 15.6% and return on equity of 35.8%. Leverage is elevated at 3.5× net debt/EBITDA. Revenue grew 9.5% year-on-year. It yields 2.3% in dividends. The mean analyst target of USD293.89 sits 1.5% above the current price (Buy, 21 analysts).
business model
IBM is an enterprise technology and consulting company that provides hybrid-cloud software, IT consulting, infrastructure (including mainframe systems), and financing. Its strategy centers on hybrid cloud and AI, anchored by Red Hat's open-source platforms and the watsonx AI portfolio, with a mix of recurring software subscriptions, consulting engagements, and hardware sales.
revenue segments
IBM reports through Software (hybrid platform including Red Hat, automation, data & AI, and transaction processing), Consulting (business transformation, technology, and application services), Infrastructure (IBM Z mainframes, distributed servers, and storage), and Financing. Software and Consulting are the largest revenue and profit drivers.
key dependencies
The business depends on enterprise IT budgets, adoption of hybrid-cloud and AI solutions, the mainframe upgrade cycle, its consulting backlog and bookings, partner ecosystems (including hyperscalers), and retention of skilled technical talent. Currency movements also affect its large international revenue base.
competitors
Competitors include Microsoft, Amazon Web Services, Google Cloud, Oracle, and SAP in software/cloud; Accenture, Deloitte, and Infosys/Tata in consulting; and Dell, HPE, and others in infrastructure.
moat
IBM's strengths include deep, long-standing enterprise relationships, the entrenched and mission-critical mainframe installed base, Red Hat's open-hybrid-cloud leadership, a large patent portfolio, and switching costs in regulated industries such as banking and government.
risks
Risks include slow overall revenue growth, intense competition from hyperscale cloud providers, execution risk in pivoting to AI and hybrid cloud, dependence on lumpy consulting bookings, integration of acquisitions, and secular decline in legacy hardware and services.
Financials & metrics
as of 27 Aug 2026Price is closer to the low end of its range. Green = nearer the yearly low, red = nearer the high — a position indicator, not a buy/sell signal.
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Full financial statements
Income statement
| Line item | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Total revenue | $67.54B | $62.75B | $61.86B | $60.53B | — |
| Cost of revenue | $28.24B | $27.20B | $27.56B | $27.84B | — |
| Gross profit | $39.30B | $35.55B | $34.30B | $32.69B | — |
| Operating expense | $26.80B | $25.48B | $24.92B | $24.51B | — |
| R&D | $8.32B | $7.48B | $6.78B | $6.57B | — |
| Operating income | $12.49B | $10.07B | $9.38B | $8.17B | — |
| Interest expense | $1.94B | $1.71B | $1.61B | $1.22B | — |
| Pretax income | $10.33B | $5.80B | $8.69B | $1.16B | — |
| Tax provision | -$242.00M | -$218.00M | $1.18B | -$626.00M | — |
| Net income | $10.59B | $6.02B | $7.50B | $1.64B | — |
| EBITDA | $17.28B | $12.18B | $14.69B | $7.17B | — |
| Diluted EPS | $11.17 | $6.43 | $8.14 | $1.80 | — |
Balance sheet
| Line item | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Total assets | $151.88B | $137.18B | $135.24B | $127.24B | — |
| Current assets | $36.94B | $34.48B | $32.91B | $29.12B | — |
| Cash & equivalents | $13.59B | $13.95B | $13.07B | $7.89B | — |
| Inventory | $1.22B | $1.29B | $1.16B | $1.55B | — |
| Total liabilities | $119.14B | $109.78B | $112.63B | $105.22B | — |
| Current liabilities | $38.66B | $33.14B | $34.12B | $31.50B | — |
| Total debt | $64.61B | $58.40B | $59.94B | $54.01B | — |
| Long-term debt | $54.84B | $49.88B | $50.12B | $46.19B | — |
| Shareholders' equity | $32.65B | $27.31B | $22.53B | $21.94B | — |
| Retained earnings | $155.65B | $151.16B | $151.28B | $149.82B | — |
| Working capital | -$1.71B | $1.34B | -$1.21B | -$2.39B | — |
Cash flow
| Line item | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Operating cash flow | $13.19B | $13.45B | $13.93B | $10.44B | — |
| Investing cash flow | -$10.30B | -$4.94B | -$7.07B | -$4.20B | — |
| Financing cash flow | -$3.83B | -$7.08B | -$1.77B | -$4.96B | — |
| Capital expenditure | -$1.74B | -$1.69B | -$1.81B | -$1.97B | — |
| Free cash flow | $11.46B | $11.76B | $12.12B | $8.46B | — |
| Dividends paid | -$6.25B | -$6.15B | -$6.04B | -$5.95B | — |
| Share buybacks | -$1.02B | -$651.00M | -$402.00M | -$407.00M | — |
| End cash position | $13.64B | $14.16B | $13.09B | $7.99B | — |
Reported figures from public filings via Yahoo Finance. Line coverage varies by company. Not investment advice.
Dividends
Analyst assessment
as of 27 Aug 2026Aggregate consensus only. Named per-analyst targets require a premium source and are not shown; the data model is ready to hold them if one is added.
Technicals
as of 26 Aug 2026News
Sector peers
Notes & alerts
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