International Business Machines Corporation
- Open
- 216.22
- Day high
- 217.17
- Day low
- 210.22
- Prev close
- 219.05
- Volume
- 12.7M
- Mkt cap
- $199.9B
- P/E (TTM)
- 23.2
- EPS (TTM)
- $9.15
- P/B
- —
- P/S
- 3.8
- Yield
- 3.16%
- Per share
- $6.73
International Business Machines Corporation (IBM) is a Technology company listed on NYSE. The stock is down 26% over the past year. Drillr has 4 published research articles covering IBM.
International Business Machines Corporation (IBM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 14 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
IBM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 22, 2026 | $1.81 | $1.91 | +5.5% | $15.9B | +1.8% |
| Jan 28, 2026 | $4.31 | $4.52 | +4.9% | $19.7B | +2.6% |
| Oct 22, 2025 | $2.45 | $2.65 | +8.2% | $16.3B | +1.5% |
| Jul 23, 2025 | $2.65 | $2.80 | +5.7% | $17.0B | +2.3% |
| Apr 23, 2025 | $1.42 | $1.60 | +12.7% | $14.5B | +1.0% |
| Jan 29, 2025 | $3.77 | $3.92 | +4.0% | $17.6B | -0.0% |
| Oct 23, 2024 | $2.22 | $2.30 | +3.6% | $15.0B | -0.7% |
| Jul 24, 2024 | $2.20 | $2.43 | +10.5% | $15.8B | +0.9% |
| Apr 24, 2024 | $1.60 | $1.68 | +5.0% | $14.5B | -0.6% |
| Jan 24, 2024 | $3.78 | $3.87 | +2.4% | $17.4B | +0.5% |
| Oct 25, 2023 | $2.13 | $2.20 | +3.3% | $14.8B | +6.1% |
| Jul 19, 2023 | $2.01 | $2.18 | +8.5% | $15.5B | +4.6% |
IBM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 2, 2026 | Robinson Anneofficer: Senior Vice President | Tax | 781 | $286.73 |
| Jul 2, 2026 | LIVERIS ANDREW Ndirector | Grant | 347 | — |
| Jul 2, 2026 | Robinson Anneofficer: Senior Vice President | Option | 1,412 | — |
| Jul 2, 2026 | Buberl Thomasdirector | Grant | 341 | — |
| Jul 2, 2026 | MCNABB FREDERICK WILLIAM IIIdirector | Grant | 325 | — |
| Jul 2, 2026 | ZOLLAR ALFRED Wdirector | Grant | 325 | — |
| Jul 2, 2026 | Robinson Anneofficer: Senior Vice President | Tax | 3,254 | $286.73 |
| Jul 2, 2026 | VOSER PETER R.director | Grant | 356 | — |
| Jul 2, 2026 | HOWARD MICHELLE Jdirector | Grant | 228 | — |
| Jul 2, 2026 | FARR DAVID Ndirector | Grant | 209 | — |
| Jul 2, 2026 | Robinson Anneofficer: Senior Vice President | Option | 5,883 | — |
| Jul 2, 2026 | Pollack Martha Edirector | Grant | 209 | — |
| Jul 2, 2026 | Laguarta Ramondirector | Grant | 325 | — |
| Jul 2, 2026 | Brown Marianne Catherinedirector | Grant | 325 | — |
| Jul 2, 2026 | Gorsky Alexdirector | Grant | 383 | — |
Source: IBM SEC Form 4 filings, latest Jul 2, 2026. For informational purposes only — not investment advice.
See the full IBM insider & 13F page →IBM research & analysis
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MSFTCRMADBE
International Business Machines Corporation company profile
Overview
International Business Machines Corporation (NYSE:IBM) is a multinational technology corporation founded in 1911 and headquartered in Armonk, New York. Originally known as the Computing-Tabulating-Recording Company, IBM has evolved from a manufacturer of punch-card machines and mechanical calculators into one of the world's largest technology services companies. The company went public in 1915 and has undergone significant transformation over the past decade, repositioning itself from a traditional hardware-focused enterprise to a software-led integrated platform specializing in hybrid cloud computing and artificial intelligence solutions.
Business
IBM operates as an integrated technology services company across four primary business segments that collectively generated $62.8 billion in revenue for fiscal year 2024. The company has strategically repositioned itself to focus on high-growth, high-margin areas of enterprise technology. The Software segment represents approximately 45% of IBM's total business and includes several key components. Red Hat is IBM's flagship enterprise open-source platform, acquired in 2019 for $34 billion, which provides Linux operating systems, container orchestration through OpenShift, and middleware solutions that enable hybrid cloud deployments. The Automation portfolio includes business process automation tools, AIOps (artificial intelligence for IT operations) platforms, and application integration software. Data and AI solutions encompass the watsonx platform for enterprise artificial intelligence, analytics tools, and database management systems. Transaction Processing includes mission-critical software that runs on IBM's mainframe computers, serving industries like banking, airlines, and retail where system reliability is paramount. The Consulting segment provides technology implementation and business transformation services to enterprise clients. This includes strategy consulting, business process redesign, systems integration, application development, and cloud migration services. Consulting works closely with the Software segment to implement IBM's technology solutions at client sites. The Infrastructure segment encompasses both hardware and support services. IBM Z mainframes are high-performance computers designed for mission-critical workloads that require exceptional reliability and security. Distributed Infrastructure includes servers, storage systems, and networking equipment for hybrid cloud environments. This segment also provides technical support, maintenance, and managed services for IBM hardware installations. The Financing segment is the smallest division, offering lease financing, loans, and working capital solutions primarily to support IBM's hardware and software sales to enterprise customers.
Revenue model
IBM generates revenue through multiple complementary business models that leverage its integrated technology platform. The Software segment operates primarily on a subscription and licensing model, with over $15 billion in annual recurring revenue (ARR) providing predictable cash flows. Red Hat's enterprise subscriptions, IBM's SaaS offerings, and traditional software licenses generate ongoing revenue streams. Transaction processing software typically involves usage-based pricing tied to mainframe workloads. The Consulting segment follows a professional services model, charging clients for project-based implementations, hourly consulting rates, and managed services contracts. This segment often serves as a vehicle to drive adoption of IBM's software solutions, creating a synergistic relationship between services and product sales. The Infrastructure segment operates on a traditional product sales model for hardware, supplemented by ongoing support and maintenance contracts. Mainframe sales tend to be cyclical with refresh cycles every 3-4 years, while distributed infrastructure competes in the broader enterprise server and storage markets. Several factors influence IBM's profit margins across these business models. Positive margin drivers include the company's shift toward higher-margin software and services, the recurring nature of subscription revenue, productivity improvements from automation, and the premium pricing power IBM maintains in mission-critical enterprise markets. The company's focus on artificial intelligence and hybrid cloud solutions also commands higher margins than traditional IT services. Margin pressures come from intense competition in cloud infrastructure from hyperscalers like Amazon Web Services and Microsoft Azure, pricing pressure in traditional consulting services, the cyclical nature of mainframe hardware sales, and the significant investments required in research and development to maintain technological leadership. Currency fluctuations also impact margins given IBM's global operations, and economic downturns can reduce demand for discretionary consulting projects.
Competitive moat
IBM's competitive moat is moderately strong but faces ongoing challenges from cloud-native competitors and changing enterprise technology preferences. The company's primary competitive advantages stem from several sources. Mission-critical system expertise represents IBM's strongest moat. Many of the world's largest banks, airlines, and retailers run core business operations on IBM mainframes and software that would be extremely costly and risky to replace. This creates significant switching costs and customer stickiness, particularly in regulated industries where system reliability and security are paramount. IBM's decades of experience in enterprise-grade systems and its ability to provide end-to-end support for complex technology environments creates substantial barriers for competitors. Hybrid cloud positioning provides another competitive advantage. Through Red Hat's acquisition, IBM gained credible open-source credentials and container orchestration capabilities that enable enterprises to manage workloads across multiple cloud environments. This hybrid approach differentiates IBM from pure-play cloud providers who prefer customers to use their proprietary platforms exclusively. Domain expertise and consulting capabilities create value through IBM's ability to understand complex enterprise business processes and implement technology solutions that address specific industry challenges. The company's consulting arm provides implementation expertise that competitors often lack. However, IBM faces significant competitive threats that weaken its moat. Hyperscale cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform offer more scalable, cost-effective infrastructure solutions that appeal to enterprises seeking to modernize their technology stacks. These competitors have captured most of the growth in cloud computing while IBM's infrastructure business has declined. Software-as-a-Service competitors provide specialized solutions that can replace IBM's traditional enterprise software offerings. Companies like Salesforce, ServiceNow, and Workday offer cloud-native alternatives that are often easier to implement and maintain than IBM's on-premises solutions. The strength of IBM's moat varies significantly by business segment, with Transaction Processing and mission-critical consulting maintaining stronger defensive positions than Infrastructure and general-purpose software offerings.
Risks & safety
IBM demonstrates moderate financial safety with adequate liquidity but elevated debt levels that require careful monitoring. Liquidity and Cash Generation: - Strong free cash flow generation of $11.8 billion in 2024, providing substantial financial flexibility - Cash and short-term investments of $13.9 billion as of Q4 2024 - Positive operating cash flow of $13.4 billion annually - Current ratio of 1.04, indicating adequate short-term liquidity coverage Debt and Solvency: - High debt-to-equity ratio of 2.14, reflecting significant leverage - Total liabilities of $109.8 billion against total assets of $137.2 billion - Net debt position requires ongoing cash generation to service obligations - No immediate solvency concerns given strong cash flows Valuation Metrics: - Price-to-earnings ratio of 34.2 based on 2024 results, moderately elevated - EV/EBITDA of 20.6, reasonable for a technology services company - Price-to-book ratio of 7.6, reflecting premium to tangible assets - Graham number suggests potential overvaluation at current levels Other Considerations: - Dividend yield provides income support for shareholders - Business model transformation creates execution risk - Competitive pressures in core markets require continued investment
Recent development
Over the past several years, IBM has executed a comprehensive strategic transformation focused on positioning the company as a leader in hybrid cloud computing and enterprise artificial intelligence. The most significant development was the $34 billion acquisition of Red Hat in 2019, which provided IBM with credible open-source capabilities and container orchestration technology through OpenShift. This acquisition fundamentally changed IBM's software portfolio and enabled the company to offer legitimate hybrid cloud solutions. IBM has aggressively pursued an artificial intelligence strategy centered around its watsonx platform, which includes foundation models, data management tools, and AI governance capabilities. The company's generative AI book of business has grown rapidly from under $1 billion to over $6 billion, with approximately 20% coming from software solutions and 80% from consulting implementations. IBM has developed its own Granite family of AI models, which are designed to be more cost-efficient than large general-purpose models and better suited for enterprise use cases. The company has undertaken significant portfolio optimization, divesting non-core assets while making strategic acquisitions to strengthen its hybrid cloud and AI capabilities. Recent acquisitions include HashiCorp for infrastructure automation, StreamSets and webMethods for data integration, and several smaller AI and security companies. IBM has also established a $500 million AI venture fund to invest in emerging technologies. Productivity initiatives have been a major focus, with IBM targeting $3.5 billion in annual cost savings through automation, process improvements, and operational efficiency gains. The company has also invested heavily in quantum computing research, opening quantum data centers and developing quantum-safe cryptography solutions. IBM's mainframe business has been modernized with the introduction of AI-capable processors like the Telum II chip and integration with hybrid cloud platforms. The company has also developed AI-powered tools like watsonx Code Assistant for Z to help modernize legacy applications running on mainframes.
IBM company profile · for informational purposes only — not investment advice.
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