International Business Machines Corp (IBM)
Information Technology · IT Consulting & Other Services · US stock · S&P 500 component
$232.14
▼ -1.98 (0.85%)
Fair valueFair
$195 −16.0% to fair value
$97fair band $117–$273$292
Day's range
$230.25 – $236.98
52-week range
$197.77 – $330.09
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 2.9%. On the site's X-Ray Score it receives 46 out of 100.
Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.
Price chart
52-wk range $197.77 – $330.09Volume 6,954,682Daily, split-adjusted
Vitals
Market cap$221.3B
52-week range$197.77 – $330.09
Volume (last day)6,954,682
P/E (TTM)20.6
EBIT / EV yield4.4%
Free-cash-flow yield6.2%
Dividend yield2.9%
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 like Apple). 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
$195model spread $185 – $204
Fair
−16.0% to fair value
Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is High, so the safety margin is 40%.
Multiples use through-the-cycle earnings (0.66x of the last twelve months)
Peak-cycle earnings: the current operating margin is more than 1.5x its 7-year average, so the fair value range is widened
Price $232
Undervalued < $117Fair $117 – $273Overvalued > $273
10-year DCF (market-scaled)
$148
Peer multiples
$255
Earnings power floor (not blended)
$24
Fundamentals-adjusted multiple
$182
Growth the price implies
15.2%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (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.
Valuation
Fair
68/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield4.4%
Free-cash-flow yield6.2%
Fair value vs price0.8×
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 yield2.9%
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...64 ACN Accenture plc63 IT Gartner Inc60Other IT Consulting & Other Services companies by X-Ray Score.
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 46/100.
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
Neutral
7 bullish · 3 neutral · 6 bearish
Weekly
Bearish
4 bullish · 1 neutral · 7 bearish
Monthly
Bearish
2 bullish · 1 neutral · 5 bearish
Moving averages (daily)
| SMA 10 | 226.9 | Bullish |
| EMA 10 | 228.6 | Bullish |
| SMA 20 | 226.3 | Bullish |
| EMA 20 | 228.5 | Bullish |
| SMA 50 | 232.0 | Bullish |
| EMA 50 | 231.9 | Bullish |
| SMA 100 | 244.8 | Bearish |
| EMA 100 | 237.9 | Bearish |
| SMA 200 | 249.2 | Bearish |
| EMA 200 | 245.3 | Bearish |
Oscillators (daily)
| RSI (14) | 53.83 | Neutral |
| MACD (12, 26) | -0.61 | Bearish |
| Momentum (12) | 5.55 | Bullish |
| Stochastic %K (14) | 74.77 | Neutral |
| Williams %R (14) | -25.23 | Neutral |
| CCI (20) | 107.4 | Bearish |
Pivot points (classic, last session)
S3 222.5 | S2 226.4 | S1 229.3 | Pivot 233.1 | R1 236.0 | R2 239.9 | R3 242.7 |
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
2.90%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 10 Aug 2026 | 1.6900 |
| 8 May 2026 | 1.6900 |
| 10 Feb 2026 | 1.6800 |
| 10 Nov 2025 | 1.6800 |
| 8 Aug 2025 | 1.6800 |
| 9 May 2025 | 1.6800 |
| 10 Feb 2025 | 1.6700 |
| 12 Nov 2024 | 1.6700 |
| 9 Aug 2024 | 1.6700 |
| 9 May 2024 | 1.6700 |
| 8 Feb 2024 | 1.6600 |
| 9 Nov 2023 | 1.6600 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
IBM SEC filings
1 Oct 2026
8-KSEC EDGAR
Director or officer change
14 Aug 2026
8-KSEC EDGAR
Current report
11 Aug 2026
424B5SEC EDGAR
424B5
23 Jul 2026
10-QSEC EDGAR
Quarterly report
22 Jul 2026
8-KSEC EDGAR
Results of operations
14 Jul 2026
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
23 Jun 2026
8-KSEC EDGAR
Entered a material agreement
28 May 2026
8-KSEC EDGAR
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.