Is International Business Machines Stock Outperforming Its Rivals?
IBM’s stock has largely underperformed several key peers over the past year as of February 25, 2026, amid a rapidly scaling AI and cloud landscape. A closer look reveals IBM’s slower revenue growth compared to rivals like Microsoft and Google, alongside a higher valuation than some peers. Despite mixed profitability, its strong Free Cash Flow margin is notable. This suggests limited upside if hyperscale and pure-play momentum continues to favor companies with higher growth trajectories in the current tech environment.
- Operating Margin: IBM’s 17.7% operating margin is robust, though lower than MSFT’s 46.7% driven by high-margin cloud/AI software, reflecting differing business mixes.
- Revenue Growth: IBM’s 4.5% LTM revenue growth is modest; peers like MSFT & AMZN capitalize on cloud/AI/advertising, indicating IBM’s hybrid cloud pivot still gaining traction.
- Stock Performance & Valuation: IBM’s 5.5% 1-year stock decline, trading at 28.1 P/E, trails peers, reflecting market concerns over AI disruption despite its hybrid cloud/AI focus.
Here’s how International Business Machines stacks up across size, valuation, and profitability versus key peers.
| IBM | MSFT | AMZN | ORCL | ACN | GOOGL | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 221.8 | 2,976.9 | 2,256.0 | 423.6 | 118.6 | 3,778.0 |
| Revenue ($ Bil) | 65.4 | 305.5 | 716.9 | 61.0 | 70.7 | 402.8 |
| PE Ratio | 28.1 | 25.0 | 29.0 | 27.5 | 15.6 | 28.6 |
| LTM Revenue Growth | 4.5% | 16.7% | 12.4% | 11.1% | 6.6% | 15.1% |
| LTM Operating Margin | 17.7% | 46.7% | 11.2% | 31.9% | 14.4% | 32.0% |
| LTM FCF Margin | 18.1% | 25.3% | 1.1% | -21.6% | 16.3% | 18.2% |
| 12M Market Return | -5.5% | 1.4% | -1.0% | -11.4% | -46.1% | 79.1% |
For more details on International Business Machines, read Buy or Sell IBM Stock. Below we compare IBM’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
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| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| IBM | 4.5% | – | 1.4% | 2.2% | 5.5% |
| MSFT | 16.7% | 14.9% | 15.7% | 6.9% | |
| AMZN | 12.4% | 12.4% | 11.0% | 11.8% | |
| ORCL | 11.1% | 8.4% | 6.0% | 17.7% | |
| ACN | 6.6% | 7.4% | 1.2% | 4.1% | |
| GOOGL | 15.1% | 15.1% | 13.9% | 8.7% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| IBM | 17.7% | – | 16.1% | 15.9% | 13.5% |
| MSFT | 46.7% | 45.6% | 44.6% | 41.8% | |
| AMZN | 11.2% | 11.2% | 10.8% | 6.4% | |
| ORCL | 31.9% | 31.5% | 30.3% | 27.6% | |
| ACN | 14.4% | 14.7% | 14.8% | 13.7% | |
| GOOGL | 32.0% | 32.0% | 32.1% | 27.4% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| IBM | 28.1 | – | 45.3 | 26.7 | 90.0 |
| MSFT | 25.0 | 35.3 | 35.5 | 38.7 | |
| AMZN | 29.0 | 31.7 | 38.8 | 51.5 | |
| ORCL | 27.5 | 43.7 | 43.7 | 33.4 | |
| ACN | 15.6 | 21.8 | 30.4 | 32.2 | |
| GOOGL | 28.6 | 28.7 | 23.3 | 23.9 |
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