International Business Machines (IBM)
Market Price (7/23/2026): $204.96 | Market Cap: $192.4 BilInvestor Relations Sector: Information Technology | Industry: IT Consulting & Other Services
International Business Machines (IBM)
Market Price (7/23/2026): $204.96Market Cap: $192.4 BilSector: Information TechnologyIndustry: IT Consulting & Other Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 8.8%, Dividend Yield is 3.3%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 4.4%, FCF Yield is 6.3% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 20%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 18%, CFO LTM is 14 Bil, FCF LTM is 12 Bil Stock buyback supportStock Buyback 3Y Total is 2.3 Bil Low stock price volatilityVol 12M is 48% Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, Cybersecurity, and Crypto & Blockchain. Show more. | Weak multi-year price returns2Y Excs Rtn is -18% | Key risksIBM key risks include [1] intense competition from major hyperscalers in the hybrid cloud market, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 8.8%, Dividend Yield is 3.3%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 4.4%, FCF Yield is 6.3% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 20%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 18%, CFO LTM is 14 Bil, FCF LTM is 12 Bil |
| Stock buyback supportStock Buyback 3Y Total is 2.3 Bil |
| Low stock price volatilityVol 12M is 48% |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, Cybersecurity, and Crypto & Blockchain. Show more. |
| Weak multi-year price returns2Y Excs Rtn is -18% |
| Key risksIBM key risks include [1] intense competition from major hyperscalers in the hybrid cloud market, Show more. |
Qualitative Assessment
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International Business Machines (IBM) stock has lost about 15% since 3/31/2026 because of the following key factors:
1. IBM missed Wall Street's revenue and adjusted earnings expectations for fiscal Q2 2026. The company reported Q2 2026 revenue of $17.2 billion, falling short of the consensus estimate of $17.86 billion by approximately $660 million. Adjusted earnings per share (EPS) of $2.93 also missed analysts' forecasts of $3.01 to $3.02 per share.
2. The Infrastructure segment experienced a significant decline, driven by a shift in client spending. IBM's Infrastructure revenue decreased by 7% in fiscal Q2 2026. This was primarily due to a late-quarter reprioritization of customer capital expenditures towards servers, storage, and memory to secure supply-constrained infrastructure, diverting spending away from IBM's software and services offerings. Notably, IBM Z revenue was down 42%.
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International Business Machines (IBM) stock has lost about 15% since 3/31/2026 because of the following key factors:
1. IBM missed Wall Street's revenue and adjusted earnings expectations for fiscal Q2 2026. The company reported Q2 2026 revenue of $17.2 billion, falling short of the consensus estimate of $17.86 billion by approximately $660 million. Adjusted earnings per share (EPS) of $2.93 also missed analysts' forecasts of $3.01 to $3.02 per share.
2. The Infrastructure segment experienced a significant decline, driven by a shift in client spending. IBM's Infrastructure revenue decreased by 7% in fiscal Q2 2026. This was primarily due to a late-quarter reprioritization of customer capital expenditures towards servers, storage, and memory to secure supply-constrained infrastructure, diverting spending away from IBM's software and services offerings. Notably, IBM Z revenue was down 42%.
3. IBM lowered its full-year 2026 revenue growth guidance. Following the disappointing Q2 2026 performance, the company trimmed its constant-currency revenue growth outlook for the full fiscal year 2026 to a range of 4% to 5%, down from its previous expectation of more than 5%.
4. Analyst downgrades and price target reductions contributed to negative sentiment. After IBM's preliminary Q2 2026 earnings warning on July 14, 2026, several analysts revised their outlooks. For instance, Citigroup slashed its price target from $375 to $255, and HSBC downgraded IBM's stock from "Hold" to "Reduce," lowering its price target from $231 to $191.
5. A shareholder rights firm initiated an investigation into potential securities-law violations. Following the significant stock drop of over 25% on July 14, 2026, after the preliminary earnings announcement, a shareholder rights firm launched an investigation into IBM regarding potential misstatements related to the company's sales pipeline and AI-related demand trends.
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Stock Movement Drivers
Fundamental Drivers
The -14.5% change in IBM stock from 3/31/2026 to 7/22/2026 was primarily driven by a -15.6% change in the company's P/E Multiple.| (LTM values as of) | 3312026 | 7222026 | Change |
|---|---|---|---|
| Stock Price ($) | 240.62 | 205.77 | -14.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 67,536 | 68,912 | 2.0% |
| Net Income Margin (%) | 15.7% | 15.6% | -0.5% |
| P/E Multiple | 21.3 | 18.0 | -15.6% |
| Shares Outstanding (Mil) | 936 | 938 | -0.2% |
| Cumulative Contribution | -14.5% |
Market Drivers
3/31/2026 to 7/22/2026| Return | Correlation | |
|---|---|---|
| IBM | -14.5% | |
| Market (SPY) | 14.9% | 5.8% |
| Sector (XLK) | 35.6% | 4.8% |
Fundamental Drivers
The -29.6% change in IBM stock from 12/31/2025 to 7/22/2026 was primarily driven by a -48.0% change in the company's P/E Multiple.| (LTM values as of) | 12312025 | 7222026 | Change |
|---|---|---|---|
| Stock Price ($) | 292.38 | 205.77 | -29.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 65,402 | 68,912 | 5.4% |
| Net Income Margin (%) | 12.1% | 15.6% | 29.1% |
| P/E Multiple | 34.5 | 18.0 | -48.0% |
| Shares Outstanding (Mil) | 934 | 938 | -0.5% |
| Cumulative Contribution | -29.6% |
Market Drivers
12/31/2025 to 7/22/2026| Return | Correlation | |
|---|---|---|
| IBM | -29.6% | |
| Market (SPY) | 9.9% | 19.5% |
| Sector (XLK) | 25.4% | 15.2% |
Fundamental Drivers
The -28.4% change in IBM stock from 6/30/2025 to 7/22/2026 was primarily driven by a -63.2% change in the company's P/E Multiple.| (LTM values as of) | 6302025 | 7222026 | Change |
|---|---|---|---|
| Stock Price ($) | 287.43 | 205.77 | -28.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 62,830 | 68,912 | 9.7% |
| Net Income Margin (%) | 8.7% | 15.6% | 79.1% |
| P/E Multiple | 48.7 | 18.0 | -63.2% |
| Shares Outstanding (Mil) | 928 | 938 | -1.1% |
| Cumulative Contribution | -28.4% |
Market Drivers
6/30/2025 to 7/22/2026| Return | Correlation | |
|---|---|---|
| IBM | -28.4% | |
| Market (SPY) | 22.0% | 22.6% |
| Sector (XLK) | 43.0% | 17.9% |
Fundamental Drivers
The 69.4% change in IBM stock from 6/30/2023 to 7/22/2026 was primarily driven by a 415.5% change in the company's Net Income Margin (%).| (LTM values as of) | 6302023 | 7222026 | Change |
|---|---|---|---|
| Stock Price ($) | 121.47 | 205.77 | 69.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 60,584 | 68,912 | 13.7% |
| Net Income Margin (%) | 3.0% | 15.6% | 415.5% |
| P/E Multiple | 60.1 | 18.0 | -70.1% |
| Shares Outstanding (Mil) | 908 | 938 | -3.3% |
| Cumulative Contribution | 69.4% |
Market Drivers
6/30/2023 to 7/22/2026| Return | Correlation | |
|---|---|---|
| IBM | 69.4% | |
| Market (SPY) | 74.6% | 32.3% |
| Sector (XLK) | 111.3% | 27.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| IBM Return | 16% | 11% | 22% | 39% | 38% | -28% | 117% |
| Peers Return | 44% | -31% | 52% | 31% | 17% | -16% | 93% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 100% |
Monthly Win Rates [3] | |||||||
| IBM Win Rate | 58% | 50% | 67% | 75% | 50% | 43% | |
| Peers Win Rate | 67% | 28% | 68% | 63% | 48% | 40% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 57% | |
Max Drawdowns [4] | |||||||
| IBM Max Drawdown | -18% | -17% | -15% | -17% | -20% | -36% | |
| Peers Max Drawdown | -11% | -40% | -17% | -20% | -34% | -35% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: MSFT, AMZN, ORCL, ACN, GOOGL. See IBM Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/22/2026 (YTD)
How Low Can It Go
| Event | IBM | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -16.4% | -18.8% |
| % Gain to Breakeven | 19.6% | 23.1% |
| Time to Breakeven | 37 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -10.8% | -6.7% |
| % Gain to Breakeven | 12.1% | 7.1% |
| Time to Breakeven | 32 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -10.4% | -24.5% |
| % Gain to Breakeven | 11.6% | 32.4% |
| Time to Breakeven | 12 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -37.2% | -33.7% |
| % Gain to Breakeven | 59.2% | 50.9% |
| Time to Breakeven | 394 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -28.9% | -19.2% |
| % Gain to Breakeven | 40.6% | 23.8% |
| Time to Breakeven | 206 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -23.1% | -12.2% |
| % Gain to Breakeven | 30.1% | 13.9% |
| Time to Breakeven | 105 days | 62 days |
In The Past
International Business Machines's stock fell -16.4% during the 2025 US Tariff Shock. Such a loss loss requires a 19.6% gain to breakeven.
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| Event | IBM | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -37.2% | -33.7% |
| % Gain to Breakeven | 59.2% | 50.9% |
| Time to Breakeven | 394 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -28.9% | -19.2% |
| % Gain to Breakeven | 40.6% | 23.8% |
| Time to Breakeven | 206 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -23.1% | -12.2% |
| % Gain to Breakeven | 30.1% | 13.9% |
| Time to Breakeven | 105 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -35.6% | -6.8% |
| % Gain to Breakeven | 55.4% | 7.3% |
| Time to Breakeven | 349 days | 15 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -34.6% | -53.4% |
| % Gain to Breakeven | 52.8% | 114.4% |
| Time to Breakeven | 203 days | 1085 days |
In The Past
International Business Machines's stock fell -16.4% during the 2025 US Tariff Shock. Such a loss loss requires a 19.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About International Business Machines (IBM)
International Business Machines Corporation, known as IBM, is a global technology and consulting company that provides integrated solutions and services worldwide. Founded in 1911, IBM helps businesses across various industries manage complex IT environments, transform their operations, and innovate using advanced technologies. The company operates through four main segments: Software, Consulting, Infrastructure, and Financing.
In its Software segment, IBM offers a robust portfolio including hybrid cloud platforms like Red Hat, business automation tools, artificial intelligence and data analytics solutions, and security software. This segment also provides critical transaction processing software that supports mission-critical workloads for industries such as banking, airlines, and retail. The Consulting segment focuses on business transformation, providing services in strategy, business process design, data and analytics, and system integration, helping clients implement new technologies and optimize their operations.
IBM's Infrastructure segment delivers powerful on-premises and cloud-based server and storage solutions designed for mission-critical and regulated workloads, along with support for hybrid cloud environments. Additionally, its Financing segment provides various lease, loan, and short-term working capital options to support clients acquiring IBM's technology and services. Collectively, IBM serves a broad array of enterprise customers across diverse sectors globally, enabling them to build, manage, and secure their digital foundations and drive business growth.
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IBM is like the Microsoft for large enterprise IT, providing critical software, hardware, and consulting services.
A combination of Accenture's IT consulting and Oracle's enterprise software and infrastructure, tailored for the world's biggest businesses.
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Here are the major products and services offered by International Business Machines (IBM):
- Hybrid Cloud Platform & Software: Provides enterprise open-source solutions, including Red Hat, for hybrid cloud environments.
- Business Automation & AI Software: Offers software for business process automation, AIOps, IT management, data analytics, and artificial intelligence.
- Security Software & Services: Delivers solutions for threat, data, and identity security.
- Transaction Processing Software: Supports mission-critical, on-premise workloads for industries such as banking, airlines, and retail.
- Business & Technology Consulting: Provides strategic advice, business process design, data analytics, system integration, and technology consulting services.
- Application & Cloud Platform Services: Offers services for developing, deploying, and managing applications and cloud platforms.
- Server & Storage Hardware: Supplies on-premises and cloud-based server and storage solutions for mission-critical and regulated workloads.
- Hybrid Cloud Infrastructure Support: Provides support services and solutions for clients' hybrid cloud infrastructure.
- Financing Services: Offers lease, installment payment, loan financing, and short-term working capital financing for clients.
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- Banking
- Airlines
- Retail
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International Business Machines (symbol: IBM) has the following major suppliers:
- GlobalFoundries (symbol: GFS)
- Micron Technology (symbol: MU)
- Western Digital (symbol: WDC)
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Arvind Krishna, Chairman and CEO
Arvind Krishna joined IBM in 1990 at its Thomas J. Watson Research Center. He held critical leadership roles including Senior Vice President of Cloud and Cognitive Software and Director of IBM Research. He was a principal architect of the acquisition of Red Hat, the largest acquisition in the company's history. Krishna led the building and expansion of new markets for IBM in artificial intelligence, cloud, quantum computing, and blockchain technology. He became CEO in April 2020 and Chairman in January 2021. He holds a PhD in electrical engineering from the University of Illinois at Urbana-Champaign and a B. Tech from the Indian Institute of Technology, Kanpur.
James J. Kavanaugh, Senior Vice President and Chief Financial Officer
James J. Kavanaugh joined IBM in 1996. Prior to joining IBM, he served as Chief Financial Officer, Americas Global Services, at AT&T Corporation. He was appointed CFO in January 2018 and oversees IBM's worldwide financial operations, including accounting, investor relations, corporate strategy, corporate development, and treasury. Kavanaugh has been instrumental in aligning IBM's financial strategy with its long-term transformation goals, including managing divestitures, such as Kyndryl, and funding major acquisitions. He holds an MBA from The Ohio State University and a BS from the University of Dayton. He currently serves on the T-Mobile US Board of Directors.
Rob Thomas, Senior Vice President, Software and Chief Commercial Officer
Rob Thomas oversees IBM's software business, including global product, development, business, and revenue, and is responsible for all go-to-market activities across IBM's portfolio. He directed major acquisitions totaling over $12 billion, further strengthening IBM's capabilities in software solutions. His 20-year IBM tenure includes leadership in consulting, microelectronics, and software, and he is the author of several books on big data and AI.
Mohamad Ali, Senior Vice President, IBM Consulting
Mohamad Ali leads IBM Consulting, directing global business transformation and technology services through industry expertise and strategic partnerships. Before joining IBM, he served as CEO of IDG and Carbonite, and was Chief Strategy Officer at Hewlett Packard.
Nickle LaMoreaux, Senior Vice President & Chief Human Resources Officer
Nickle LaMoreaux oversees IBM's global HR function, including talent acquisition, workforce development, diversity, equity, and inclusion (DEI), compensation, and leadership development. Under her leadership, IBM adopted agile work models and expanded skills-based hiring. She plays a key role in change management as IBM adapts its workforce to new business models in cloud, AI, and consulting.
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Key Risks to International Business Machines (IBM)
- Intense Competition and Market Share Erosion in Hybrid Cloud and AI: IBM operates in a fiercely competitive environment, particularly in its hybrid cloud and enterprise software segments, where it contends with hyperscale providers like Microsoft and Amazon Web Services. Its consulting arm also battles global systems integrators, and the AI arena sees competition from both large tech companies and agile startups. IBM's revenue growth can be dwarfed by competitors, making it challenging to compete on the breadth of services and pricing in the public cloud sector.
- Cybersecurity Threats and Cloud Reliability Issues: As a major provider of integrated solutions and services, IBM is exposed to significant and evolving cybersecurity threats, including data breaches, ransomware, and other malicious attacks. The increased use of AI may introduce novel methods of attack, and the company's reliance on third-party suppliers also presents cybersecurity risks. Furthermore, frequent cloud outages and systemic weaknesses in its control plane architecture have been reported, which can erode customer trust and undermine IBM's hybrid cloud strategy and overall reliability.
- Challenges in AI Adoption, Governance, and Skills Shortage: The rapid advancement and adoption of generative AI present both opportunities and risks for IBM. A significant challenge lies in governance gaps, as many organizations, including those using IBM's AI models, lack robust AI governance policies and proper access controls. Additionally, there is a recognized skills shortage, particularly in the IBM i platform, and a broader need for workforce retraining and reskilling for AI, which could hinder IBM's ability to effectively implement and deliver AI solutions. Misalignment between client IT roadmaps and IBM's hybrid-cloud strategy, alongside the pressure to modernize while maintaining legacy systems, further contributes to this risk.
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The rapid advancements and widespread adoption of generative artificial intelligence (AI) technologies, such as large language models (LLMs), present a clear emerging threat. While IBM has a long history in AI with its Watson platform and offers "data and artificial intelligence solutions," the current paradigm shift driven by companies like OpenAI, Google, and Meta, with their highly capable and increasingly accessible generative AI models, is redefining the competitive landscape. If IBM's enterprise AI offerings do not effectively integrate and leverage these new, powerful capabilities, or if competitors deliver more compelling and performant generative AI solutions that address business problems more efficiently, IBM's market position in this critical and rapidly evolving technology domain could be significantly challenged.
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International Business Machines (IBM) operates across several key segments, each addressing significant global markets:
Software Segment
- Hybrid Cloud Platform and Software Solutions: The global hybrid cloud market size was valued at USD 171.6 billion in 2025 and is projected to reach USD 619.6 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 14.88% during 2026-2034.
- Enterprise Open-Source Solutions (Red Hat): The global open source software market size is expected to grow from USD 48.54 billion in 2025 to USD 95.38 billion by 2030, at a CAGR of 14.0%.
- Business Automation Software: The global business process automation market size was approximately USD 9.78 billion in 2022 and is predicted to grow to around USD 21.15 billion by 2030, with a CAGR of roughly 10.10% between 2023 and 2030.
- AIOps and Management: The global Artificial Intelligence for IT Operations (AIOps) platform market size was estimated at USD 14.60 billion in 2024 and is projected to reach USD 36.07 billion by 2030, growing at a CAGR of 15.2% from 2025 to 2030.
- Data and Artificial Intelligence Solutions: The global Artificial Intelligence (AI) software market size is forecast to reach US$174.1 billion in 2025 and is estimated to be valued at US$467 billion by 2030, growing at a CAGR of 25%.
- Security Software and Services (Cybersecurity): The global cybersecurity market size reached USD 326.2 billion in 2025. Looking forward, the market is expected to reach USD 676.3 billion by 2034, exhibiting a CAGR of 8.40% during 2026-2034.
- Transaction Processing Software: The global Payment Processing Software market size is expected to reach USD 74,362.1 million by the end of 2025 and USD 165,495 million by 2033, growing at a CAGR of 10.517% during 2025 to 2033.
Consulting Segment
- Business Transformation, Technology Consulting, and Application and Cloud Platform Services: The global IT consulting services market size is estimated at USD 69,590 million in 2025 and is expected to rise to USD 106,580 million by 2034, experiencing a CAGR of 6.4%.
Infrastructure Segment
- On-premises and Cloud-based Server Solutions: The global enterprise server market size reached USD 132.0 billion in 2024. Looking forward, the market is expected to reach USD 310.0 billion by 2033, exhibiting a CAGR of 10% during 2025-2033.
- Storage Solutions: The global enterprise data storage market size is projected to surge from USD 13.1 billion in 2025 to USD 19.8 billion by 2034, expanding at a CAGR of 4.7% over the forecast period.
Financing Segment
- Lease, Installment Payment, Loan Financing, and Short-term Working Capital Financing Services: Null
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International Business Machines (IBM) anticipates several key drivers for its future revenue growth over the next two to three years:
- Hybrid Cloud and Generative AI Adoption: IBM's strategy is centered on being a software-led hybrid cloud and AI platform company. The company is experiencing significant growth in its generative AI book of business, which stood at over $12.5 billion by Q4 2025, indicating strong enterprise adoption of its AI capabilities.
- Strong Software Segment Performance: The Software segment, particularly driven by Red Hat, automation, and data & AI offerings, is expected to be a primary growth engine. IBM projected 10% software revenue growth for 2026. Red Hat's annual recurring revenue (ARR) continues to expand, and OpenShift is demonstrating strong growth within Red Hat.
- Accelerating Consulting Services: IBM's Consulting segment is forecast to see accelerated growth, fueled by strong demand for hybrid cloud and AI technologies, as well as its Consulting Advantage platform which leverages digital assets for client value.
- IBM Z Mainframe Cycle: The latest generation of IBM's mainframe platform (z17) is a significant contributor to the Infrastructure segment's revenue. Its robust adoption, particularly for mission-critical and AI/hybrid cloud workloads, continues to drive growth.
- Strategic Acquisitions: Mergers and acquisitions, primarily focused on software, remain a core strategy for IBM to enhance its portfolio and accelerate growth. Acquisitions like Confluent are expected to contribute to revenue growth in 2026 and beyond.
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Share Repurchases
- IBM suspended its share repurchase program from 2020 through 2023 to focus on debt repayment following the Red Hat acquisition.
- As of early 2026, the company has not resumed stock buybacks under current CEO Arvind Krishna, despite having approximately $2.0 billion remaining in share repurchase authorization.
- IBM has not repurchased $2 billion in stock in any single quarter since December 2019.
Share Issuance
- IBM has experienced mild shareholder dilution, with fully-diluted shares outstanding increasing from 904 million in June 2021 to 924 million as of September 2024.
- Shares outstanding for the quarter ending December 31, 2025, were 0.952 billion, reflecting a 1.63% increase year-over-year.
- On average, since 1999, IBM has issued 18.3 million shares annually for stock-based compensation and stock purchase plans.
Outbound Investments
- IBM has continued strategic acquisitions in the last 3-5 years, averaging 8 acquisitions annually from 2020-2025.
- Key acquisitions include HashiCorp for $6.4 billion in April 2024, aimed at enhancing its hybrid cloud platform and infrastructure automation capabilities.
- In December 2025, IBM acquired Confluent for $11 billion to bolster its smart data platform for enterprise generative AI.
- Other acquisitions since 2021 have focused on strengthening its portfolio in areas such as AI-powered application resource management (Turbonomic, 2021), renewable energy asset performance management (Prescinto, 2024), and generative AI data needs (DataStax, 2025).
Capital Expenditures
- IBM's capital expenditures have shown a general downward trend over the last decade.
- Annual capital expenditures were approximately $2.01 billion in 2021, $1.35 billion in 2022, $1.245 billion in 2023, $1.048 billion in 2024, and $1.091 billion in 2025.
- The company's focus on transitioning to higher-growth, higher-margin businesses like software and AI has contributed to a shrinking capital expenditure profile.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 225.31 |
| Mkt Cap | 1,496.1 |
| Rev LTM | 195,687 |
| Op Inc LTM | 53,932 |
| FCF LTM | 12,420 |
| FCF 3Y Avg | 16,808 |
| CFO LTM | 90,254 |
| CFO 3Y Avg | 72,175 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 15.8% |
| Rev Chg 3Y Avg | 11.4% |
| Rev Chg Q | 17.5% |
| QoQ Delta Rev Chg LTM | 3.9% |
| Op Inc Chg LTM | 20.6% |
| Op Inc Chg 3Y Avg | 19.2% |
| Op Mgn LTM | 25.7% |
| Op Mgn 3Y Avg | 24.1% |
| QoQ Delta Op Mgn LTM | 0.3% |
| CFO/Rev LTM | 30.8% |
| CFO/Rev 3Y Avg | 29.5% |
| FCF/Rev LTM | 16.2% |
| FCF/Rev 3Y Avg | 17.1% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 1,496.1 |
| P/S | 4.5 |
| P/Op Inc | 17.8 |
| P/EBIT | 16.9 |
| P/E | 22.2 |
| P/CFO | 15.4 |
| Total Yield | 5.8% |
| Dividend Yield | 1.2% |
| FCF Yield 3Y Avg | 2.4% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 1.5% |
| 3M Rtn | -13.7% |
| 6M Rtn | -19.4% |
| 12M Rtn | -23.6% |
| 3Y Rtn | 39.7% |
| 1M Excs Rtn | 1.2% |
| 3M Excs Rtn | -19.5% |
| 6M Excs Rtn | -31.4% |
| 12M Excs Rtn | -43.3% |
| 3Y Excs Rtn | -23.6% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Software | 29,962 | 27,085 | 25,011 | 25,037 | 23,426 |
| Consulting | 21,055 | 20,692 | 20,884 | 19,107 | 17,844 |
| Infrastructure | 15,718 | 14,020 | 14,593 | 15,288 | 14,188 |
| Financing | 737 | 713 | 741 | 645 | 774 |
| Other revenue | 65 | 207 | 235 | 135 | 335 |
| Other-divested businesses | -2 | 35 | 397 | 318 | 785 |
| Total | 67,535 | 62,752 | 61,861 | 60,530 | 57,352 |
| $ Mil | 1998 |
|---|---|
| Global Services | 3,757 |
| Server | 2,842 |
| Software | 2,588 |
| Global Financing | 1,165 |
| Technology | 955 |
| Enterprise Investments | -616 |
| Personal Systems | -992 |
| Total | 9,699 |
| $ Mil | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Software | 60,707 | 59,811 | 57,186 | 58,420 | 58,558 |
| Consulting | 14,826 | 15,089 | 13,481 | 11,914 | 10,548 |
| Cash and marketable securities | 14,243 | 12,907 | 8,138 | 6,222 | 12,463 |
| Financing | 14,075 | 14,409 | 15,757 | 16,880 | 24,974 |
| Infrastructure | 12,161 | 11,991 | 12,243 | 11,766 | 12,378 |
| Pension assets | 7,492 | 7,506 | 8,236 | 9,848 | 7,557 |
| Deferred tax assets | 6,850 | 6,468 | 6,078 | 7,158 | 8,175 |
| Other | 3,647 | 3,563 | 3,740 | 4,530 | 3,514 |
| Operating right-of-use assets | 2,001 | 2,085 | 1,586 | 1,945 | 2,368 |
| Plant, other property and equipment | 1,952 | 1,838 | 1,760 | 2,196 | 2,449 |
| Other-divested businesses | 74 | 601 | 100 | 1,109 | 254 |
| Elimination of internal transactions | -853 | -1,028 | -1,062 | -1,608 | -4,686 |
| Notes and accounts receivable | 1,622 | 1,655 | |||
| Total assets of discontinued operations | 15,764 | ||||
| Total | 137,175 | 135,240 | 127,243 | 132,002 | 155,971 |
Price Behavior
| Market Price | $205.77 | |
| Market Cap ($ Bil) | 193.1 | |
| First Trading Date | 01/02/1962 | |
| Distance from 52W High | -37.5% | |
| 50 Days | 200 Days | |
| DMA Price | $260.51 | $270.37 |
| DMA Trend | indeterminate | up |
| Distance from DMA | -21.0% | -23.9% |
| 3M | 1YR | |
| Volatility | 76.5% | 48.5% |
| Downside Capture | 65.63 | 112.56 |
| Upside Capture | -38.10 | 54.46 |
| Correlation (SPY) | 5.1% | 22.5% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.62 | 0.56 | 0.50 | 1.01 | 0.95 | 0.74 |
| Up Beta | -0.32 | -2.11 | -0.74 | -0.13 | 0.43 | 0.55 |
| Down Beta | 1.46 | 1.45 | 0.79 | 1.18 | 1.11 | 0.77 |
| Up Capture | 29% | 166% | 112% | 123% | 92% | 82% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 9 | 21 | 34 | 64 | 133 | 423 |
| Down Capture | 86% | 44% | 113% | 146% | 116% | 93% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 12 | 20 | 29 | 61 | 119 | 327 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with IBM | |
|---|---|---|---|---|
| IBM | -26.0% | 48.3% | -0.45 | - |
| Sector ETF (XLK) | 38.8% | 24.7% | 1.27 | 17.9% |
| Equity (SPY) | 20.0% | 12.6% | 1.16 | 22.7% |
| Gold (GLD) | 21.2% | 28.1% | 0.67 | -2.4% |
| Commodities (DBC) | 33.0% | 19.1% | 1.36 | -5.4% |
| Real Estate (VNQ) | 13.9% | 14.0% | 0.70 | 16.5% |
| Bitcoin (BTCUSD) | -43.6% | 42.9% | -1.21 | 6.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with IBM | |
|---|---|---|---|---|
| IBM | 13.3% | 29.8% | 0.45 | - |
| Sector ETF (XLK) | 19.6% | 25.6% | 0.68 | 30.5% |
| Equity (SPY) | 12.8% | 17.1% | 0.58 | 35.9% |
| Gold (GLD) | 17.3% | 18.4% | 0.76 | 2.3% |
| Commodities (DBC) | 9.3% | 19.5% | 0.37 | 8.3% |
| Real Estate (VNQ) | 2.7% | 18.9% | 0.04 | 30.7% |
| Bitcoin (BTCUSD) | 15.2% | 53.5% | 0.46 | 12.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with IBM | |
|---|---|---|---|---|
| IBM | 7.6% | 27.9% | 0.30 | - |
| Sector ETF (XLK) | 24.5% | 24.8% | 0.89 | 44.4% |
| Equity (SPY) | 15.1% | 17.9% | 0.72 | 52.4% |
| Gold (GLD) | 11.5% | 16.1% | 0.58 | 2.9% |
| Commodities (DBC) | 7.1% | 17.9% | 0.31 | 17.8% |
| Real Estate (VNQ) | 5.0% | 20.7% | 0.20 | 42.7% |
| Bitcoin (BTCUSD) | 58.5% | 66.2% | 0.99 | 9.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 7/23/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/14/2026 | -25.2% | -26.6% | |
| 4/22/2026 | -8.3% | -9.8% | 1.2% |
| 1/28/2026 | 5.1% | -1.7% | -17.9% |
| 10/22/2025 | -0.9% | 7.2% | 1.6% |
| 7/23/2025 | -7.6% | -7.7% | -14.5% |
| 4/23/2025 | -6.6% | -1.5% | 6.0% |
| 1/29/2025 | 13.0% | 15.2% | 11.1% |
| 10/23/2024 | -6.2% | -12.0% | -3.7% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 11 | 15 |
| # Negative | 13 | 14 | 9 |
| Median Positive | 4.8% | 5.6% | 5.0% |
| Median Negative | -6.6% | -8.3% | -6.4% |
| Max Positive | 13.0% | 15.2% | 20.7% |
| Max Negative | -25.2% | -26.6% | -17.9% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/14/2026 | -25.2% | -26.6% | |
| 4/22/2026 | -8.3% | -9.8% | 1.2% |
| 1/28/2026 | 5.1% | -1.7% | -17.9% |
| 10/22/2025 | -0.9% | 7.2% | 1.6% |
| 7/23/2025 | -7.6% | -7.7% | -14.5% |
| 4/23/2025 | -6.6% | -1.5% | 6.0% |
| 1/29/2025 | 13.0% | 15.2% | 11.1% |
| 10/23/2024 | -6.2% | -12.0% | -3.7% |
| 7/24/2024 | 4.3% | 4.4% | 7.4% |
| 4/24/2024 | -8.3% | -10.7% | -6.4% |
| 1/24/2024 | 9.5% | 5.6% | 7.8% |
| 10/25/2023 | 4.9% | 6.1% | 14.5% |
| 7/19/2023 | 2.1% | 4.1% | 5.0% |
| 4/19/2023 | 0.0% | -0.4% | 1.2% |
| 1/25/2023 | -4.5% | -4.0% | -6.1% |
| 10/19/2022 | 4.7% | 10.2% | 20.7% |
| 7/18/2022 | -5.2% | -6.9% | 0.1% |
| 4/19/2022 | 7.1% | 5.5% | 4.2% |
| 1/24/2022 | 5.7% | 3.7% | -4.1% |
| 10/20/2021 | -9.6% | -11.8% | -13.2% |
| 7/19/2021 | 1.5% | 3.5% | 4.5% |
| 4/19/2021 | 3.8% | 6.3% | 9.3% |
| 1/21/2021 | -9.9% | -8.8% | -7.0% |
| 10/19/2020 | -6.5% | -10.6% | -4.9% |
| 7/20/2020 | -0.2% | -0.1% | 0.1% |
| SUMMARY STATS | |||
| # Positive | 12 | 11 | 15 |
| # Negative | 13 | 14 | 9 |
| Median Positive | 4.8% | 5.6% | 5.0% |
| Median Negative | -6.6% | -8.3% | -6.4% |
| Max Positive | 13.0% | 15.2% | 20.7% |
| Max Negative | -25.2% | -26.6% | -17.9% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/23/2026 | 10-Q |
| 12/31/2025 | 02/24/2026 | 10-K |
| 09/30/2025 | 10/23/2025 | 10-Q |
| 06/30/2025 | 07/24/2025 | 10-Q |
| 03/31/2025 | 04/24/2025 | 10-Q |
| 12/31/2024 | 02/25/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/30/2024 | 10-Q |
| 03/31/2024 | 04/30/2024 | 10-Q |
| 12/31/2023 | 02/26/2024 | 10-K |
| 09/30/2023 | 10/31/2023 | 10-Q |
| 06/30/2023 | 07/25/2023 | 10-Q |
| 03/31/2023 | 04/25/2023 | 10-Q |
| 12/31/2022 | 02/28/2023 | 10-K |
| 09/30/2022 | 10/25/2022 | 10-Q |
| 06/30/2022 | 07/25/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/23/2026 | 10-Q |
| 12/31/2025 | 02/24/2026 | 10-K |
| 09/30/2025 | 10/23/2025 | 10-Q |
| 06/30/2025 | 07/24/2025 | 10-Q |
| 03/31/2025 | 04/24/2025 | 10-Q |
| 12/31/2024 | 02/25/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/30/2024 | 10-Q |
| 03/31/2024 | 04/30/2024 | 10-Q |
| 12/31/2023 | 02/26/2024 | 10-K |
| 09/30/2023 | 10/31/2023 | 10-Q |
| 06/30/2023 | 07/25/2023 | 10-Q |
| 03/31/2023 | 04/25/2023 | 10-Q |
| 12/31/2022 | 02/28/2023 | 10-K |
| 09/30/2022 | 10/25/2022 | 10-Q |
| 06/30/2022 | 07/25/2022 | 10-Q |
| 03/31/2022 | 04/26/2022 | 10-Q |
| 12/31/2021 | 02/22/2022 | 10-K |
| 09/30/2021 | 11/05/2021 | 10-Q |
| 06/30/2021 | 07/27/2021 | 10-Q |
| 03/31/2021 | 04/27/2021 | 10-Q |
| 12/31/2020 | 02/23/2021 | 10-K |
| 09/30/2020 | 10/27/2020 | 10-Q |
| 06/30/2020 | 07/28/2020 | 10-Q |
| 03/31/2020 | 04/28/2020 | 10-Q |
| 12/31/2019 | 02/25/2020 | 10-K |
| 09/30/2019 | 10/30/2019 | 10-Q |
| 06/30/2019 | 07/30/2019 | 10-Q |
Investor Activity (13F)
Updated Jul 23, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
IBM Trade Sentinel
Avoid
CONVICTION RATIONALE
A severe operational failure has broken the company's growth narrative. Management admitted to a 'software and infrastructure performance shortfall' and a failure to close large deals. With core software growth guided to just 5% and new product performance in question, the path to recovery is unclear and lacks credibility.
STOCK ARCHETYPE
Hybrid Enterprise (Recurring Software & Project-Based Services/Sales)Enterprise IT spending cycles x New product adoption (e.g., Z-series) x Growth in recurring software base. Mix shift towards high-margin Software segment revenue.
INVESTMENT THESIS
Evidence points to a structural failure. The company admitted its new Z mainframe has performance issues and that it failed to adapt, suggesting a deep-seated execution and competitive problem, not just bad timing.
- Software segment profit margin was 29.8% in Q1 2026.
- Remaining Performance Obligations were approximately $69 billion at March 31, 2026.
- Software Annual Recurring Revenue was $24.6 billion in Q1 2026, up 10%.
- Free cash flow relative to net income is 1.14, indicating strong cash conversion.
PRIMARY RISK
The company's pivot to AI is failing. Management admitted it 'faltered' and that its new Z mainframe has a 'performance shortfall.' This suggests IBM's technology cannot compete with hyperscalers, leading to sustained share loss in its most critical growth markets and a permanent re-rating of the stock.
- The CEO stated, 'this quarter we faltered. We did not adapt and move quickly enough'.
- A 'software and infrastructure performance shortfall' was admitted for the new Z mainframe.
- Preliminary Q2 2026 software revenue is anticipated to increase only 5%.
- Preliminary Q2 2026 infrastructure revenue is anticipated to decline 7%.
- Numerous large deals failed to close on the timelines we expected.
| KPI | Status | Rationale |
|---|---|---|
| Software Annual Recurring Revenue (ARR) Growth | $24.6 billion, up 10% year-over-year in Q1 2026 - Decelerating | The trend for this key metric was one of steady acceleration through the first quarter of 2026, reflecting a solid recurring revenue base. However, this historical strength is now overshadowed by a severe forward-looking deceleration, with preliminary Q2 2026 results guiding for total software revenue growth of only 5%. |
| Consulting Signings Growth | Up 6% year-over-year in Q1 2026 - Turning around | Consulting signings, a leading indicator for the services business, showed a positive turnaround in the first quarter of 2026. This suggests a potential stabilization in demand for consulting projects after a period of weakness. However, the overall company performance issues revealed in July may impact future signings. |
| Remaining Performance Obligations (RPO) | approximately $69 billion (At March 31, 2026) | Represents the total contract value of work under contract that has not yet been performed or recognized as revenue, providing visibility into future revenue streams from committed customer contracts. |
| Trailing-Twelve-Month (TTM) Revenue Growth | 9.7% year-over-year (For the twelve months ended 6/30/2026) | Indicates the company's recent top-line growth trajectory over a full year, smoothing out quarterly volatility. |
| Latest-Quarter Revenue Growth | 9.5% year-over-year (For the quarter ended 6/30/2026) | The most recent measure of top-line momentum compared to the prior year. |
Incumbency Moat vs. Innovation Failure
BULL VIEW
IBM's deep enterprise incumbency and $69 billion in remaining performance obligations provide a resilient foundation. The recent 25.2% stock drop is an overreaction to a single bad quarter that management can fix, creating a value opportunity.
CORE TENSION
Can the sticky installed base offset a 'performance shortfall' in the new Z mainframe, which caused a 25.2% stock drop?
PREVAILING SENTIMENT
The latest evidence favors the bears. The CEO's admission that the company 'faltered' and 'did not adapt' points to a fundamental, not temporary, problem.
BEAR VIEW
The 'performance shortfall' in the new Z mainframe proves the innovation engine is broken. Incumbency cannot save IBM from technologically superior rivals like Microsoft, which outspends it on capex by more than 50-to-1.
| Timeline | Event & Metric To Watch |
|---|---|
9/7/2026 | Confirmation of Competitive Capex Loss Watch: Peer earnings calls (Oracle, Accenture, etc.) detailing enterprise IT spending trends and market share gains. |
9/24/2026 | Accenture Earnings Report Watch: Peer Accenture (ACN) is scheduled to report earnings. |
10/21/2026 | Official Earnings Miss and Guidance Cut Watch: Confirmation of the Q2 miss and a formal downward revision to full-year 2026 guidance. |
10/21/2026 | Z Mainframe AI Performance Scrutiny Watch: Management commentary on Z platform adoption, remediation plans, or further evidence of performance issues impacting sales. |
10/27/2026 | Alphabet Earnings Report Watch: Peer Alphabet (GOOGL) is scheduled to report earnings. |
No set date | Securities Class Action Lawsuit Filing Watch: A formal announcement of a consolidated class action lawsuit being filed, which would escalate legal risk and costs. |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-14 | Major Q2 Shortfall Pre-announced Details: IBM reported preliminary Q2 results with an infrastructure revenue decline of 7% and software revenue growth of only 5%, causing the stock to fall 25.2%. | -27.2% $290.23 -> $211.20 |
2026-07-09 | AI Software Development Tool Updated Details: IBM announced major updates to IBM Bob, its enterprise AI software development tool, with new multi-agent capabilities and specialized modernization workflows. | -4.8% $302.05 -> $287.56 |
2026-06-02 | Analyst Lifts Price Target Details: Wedbush Securities raised its price target on IBM, citing confidence in execution and that AI disruption fears proved unfounded. | -4.6% $320.42 -> $305.63 |
2026-04-22 | Negative Post-Earnings Stock Reaction Details: The company's stock had a negative two-day reaction of -10.0% following its earnings call. | -9.6% $253.81 -> $229.39 |
2026-03-17 | Confluent Acquisition Completed Details: The company completed its acquisition of all outstanding shares of Confluent, Inc. for a total purchase price of $11.59 billion. | +0.9% $247.43 -> $249.76 |
2026-02-10 | New AI-Powered Storage Launch Details: IBM introduced a new FlashSystem portfolio, including three new enterprise storage systems, powered by agentic AI to reduce storage management efforts. | -7.4% $292.51 -> $270.82 |
2026-01-28 | Positive Post-Earnings Stock Reaction Details: The company's stock had a positive two-day reaction of 5.0% following its earnings call. | +5.2% $290.06 -> $305.24 |
Position Sizing
2% - 4%
REDUCED POSITION
Sizing is volatility-based: IBM trades at roughly 41% annualized options-implied volatility versus about 15% for the S&P 500 (2.8x the market), around the 88th percentile of its own trailing year. A 2% - 4% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
MSFT - Microsoft
Pure-Play AI ScaleOffers exposure to the AI infrastructure boom at massive scale, with capital expenditures of $97.2 billion versus IBM's $1.7 billion.
ACN - Accenture
Consistent Consulting ExecutionProvides pure-play exposure to the global IT consulting trend without the cyclical risk and performance questions associated with IBM's hardware business.
A legacy tech giant in a multi-year pivot to software and AI that has shown growth but just hit a significant execution and demand-related air pocket.
IBM is a software-led hybrid cloud and AI platform company, moving away from its legacy hardware and services profile. Its growth is driven by enterprise demand for digital transformation, with its high-margin Software segment as the core profit engine. However, the company recently stumbled, revealing a significant revenue shortfall due to failed deal closures, client capex shifts, and performance issues with its new flagship mainframe, calling its near-term predictability into question.
A return to double-digit software growth, stabilization in infrastructure, and evidence that large deal closures are back on track.
Continued deal slippage, further market share loss in key segments, or confirmation that the new Z-series mainframe has persistent performance issues impacting adoption.
Minor acquisitions or divestitures that don't materially change the segment mix.
Repricing Catalyst
The July 14, 2026, pre-announcement of a revenue shortfall, which caused the stock to plummet 25.2% and triggered multiple securities fraud investigations.
Software
$30.0B TTM (44% of Total)What It Is
Sells hybrid cloud and AI platforms, including data management, automation, and transaction processing software, to enterprise clients globally.
Who Pays & How
Enterprises pay for software to run and manage their IT infrastructure, develop applications, and deploy AI. They choose IBM for its deep integration, security, and ability to operate across hybrid environments (on-premise and cloud).
Competition
Consulting
$21.1B TTM (31% of Total)What It Is
Provides business consulting, systems integration, application development, and business process outsourcing services to enterprise clients.
Who Pays & How
Enterprises pay for strategic advice and technical expertise to execute digital and AI transformations. They choose IBM for its industry expertise and ability to integrate IBM technology and partner solutions to achieve business outcomes.
Competition
Infrastructure
$15.7B TTM (23% of Total)What It Is
Sells on-premise and cloud-based server (IBM Z, Power) and storage solutions to enterprise clients for mission-critical and AI workloads.
Who Pays & How
Enterprises with needs for high security, scalability, and reliability for core business operations (like transaction processing) pay for IBM's hardware.
Competition
Financing
$737M TTM (1% of Total)What It Is
Provides client and commercial financing to facilitate IBM clients' acquisition of hardware, software, and services.
Who Pays & How
IBM clients use financing to manage cash flow when purchasing IBM's products and services.
Competition
International Business Machines — Investor Video Playlist
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| IT Consulting & Other Services Resources |
| IDC |
| Forrester |
| Consultancy.org |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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