International Business Machines Corporation (IBM) Stock

International Business Machines Corporation (IBM) is a Technology stock trading at $212.28 (as of 2026-07-17), with a market capitalization of $199.52B and a trailing P/E of 18.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

IBM provides software, consulting, infrastructure, and financing solutions and services worldwide. Its software offerings include hybrid cloud and enterprise software, data and artificial intelligence, and security; consulting covers transformation, technology, and systems integration; infrastructure includes servers, storage, and support for hybrid cloud.

Understand International Business Machines Corporation: how it makes money

IBM provides hybrid cloud software, consulting, infrastructure, and financing, and it makes money by selling software solutions (including Red Hat), delivering consulting and infrastructure services, and earning financing revenue.

IBM’s profit engine is its hybrid cloud “full stack” mix, where recurring software revenue (captured in ARR and OpenShift ARR) combines with consulting and infrastructure delivery to monetize customer demand for integrated cloud and enterprise capabilities.

Revenue by segment (latest quarter)
Software$7.2B
Consulting$5.2B
Infrastructure$4.3B
Financing$0.2B

Business quality (Mixed): The business model is clear, and the provided facts include hybrid cloud and recurring revenue KPIs, but the segment and KPI set is limited (for example, fewer direct operating metrics than ARR, and no clear customer demand indicators).

Valuation: At 23× earnings, IBM trades 27% below the Tech Hardware average (32×). Note: one-time items can distort reported P/E.

Bull case

  • Recurring software revenue is explicitly tracked through ARR and OpenShift annual recurring revenue, which supports a repeatable component of the business tied to hybrid cloud software offerings: Operational KPI candidates include ARR (annual recurring revenue) (13.0 USD_B) and OpenShift annual recurring revenue (1.2 USD_B), aligning with IBM’s Software segment focus on hybrid cloud platforms and software solutions.
  • IBM has multiple monetization streams across Software, Consulting, and Infrastructure that can benefit from hybrid cloud adoption: The company operates through four segments (Software, Consulting, Infrastructure, Financing) and the Software segment offers hybrid cloud platform and software solutions, while Consulting and Infrastructure complement delivery.

Bear case

  • Profit performance may be sensitive to execution and demand for services and infrastructure, since consulting and infrastructure are large contributors to revenue in the provided segment split: Provided segment revenue candidates show Consulting (5.2 USD_B) and Infrastructure (4.3 USD_B) alongside Software (7.2 USD_B), implying meaningful exposure beyond software recurring revenue.
  • Financing is a small portion of the provided breakdown, so it may not materially offset weakness elsewhere: Financing revenue is listed as 0.22 USD_B in the provided KPI candidates, versus much larger Software, Consulting, and Infrastructure revenue values.
Valuation — source: SEC EDGAR (first-party)
Price$212.28
Market Cap$199.52B
P/E Ratio18.6
EV / EBITDA19.8
Price / Book6.04
Price / Sales2.90
FCF Yield6.5%
DCF Value (model)$86.91
DCF Upside vs Price-59.1%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$67.53B
Net Margin15.7%
Revenue Growth (YoY)9.5%
EPS Growth (YoY)14.0%
FCF Growth (YoY)19.7%
Financial Health — source: SEC EDGAR
Altman Z-Score3.09 (safe)
Piotroski F-Score5/9 (moderate)
Valuation vs Sector & Industry
Stock P/E18.6
Sector P/E (Technology)34.7
Industry P/E (Computers)30.9
vs Sector-46.5%
vs Industry-40.0%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Insider Buys (12mo)1
Top Institutional HolderVANGUARD GROUP INC ($28.80B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorTechnology
IndustryComputers
CEOArvind Krishna
Employees270,300
CountryUS
IPO Date1915-09-24

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IBM earnings history · IBM institutional & insider holders · IBM KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-17.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.