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NYSE: IBM NYSE IT Consulting & Other Services Next results ~January 18, 2027

B Fundamentals grade

IBM is a US-listed company in the IT consulting & other services industry. Its financial year ends in December.

Stock price today

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Third-party market data · may be delayed

Fair value per share

~$220

Cash-flow model

Base case. Range ~$150–$310 across our lower- and higher-growth cases (0.7%–10.7% a year).

Price vs value

Modestly overvalued

The price is inside our value range, 16% above our base value.

Price used: $252.51, November 2, 2026

IBM valuation: adjust assumptions and compare models →

Who’s trading

What company insiders, investment funds and members of Congress have been doing with the stock, from their own filings.

Value diary

Our note on each quarter IBM files

10-Q filed October 22: IBM

Model value −1.5%

Revenue for the twelve months to September 2026 reached $69.9bn, up 6.8% on a year earlier. That pace has eased from 7.9% a quarter before. Free-cash-flow margin improved to 21.0%, against 19.1% a year earlier. We trim our model value from $221 to $217 a share, while the stock trades at $252. The rating stays Hold. At the current price, our model implies the market expects about 7.2% a year of cash-flow growth over five years. That assumption sits well above the 4.0% a year revenue growth IBM has actually delivered.

Source: 10-Q filed October 22, 2026 on SEC EDGAR · Financials · Valuation

Earlier notes (1)

Where IBM stands after its latest 10-Q

Revenue for the twelve months to June 2026 was $69.1bn, up 7.9% on a year earlier, slower than 9.7% a quarter earlier. Free-cash-flow margin held at 20.0%. Against its peers on growth, profitability, cash generation and balance sheet, it grades C. It passes 2 of our 6 financial-health checks. Our cash-flow model value is $216 a share, against a share price of $240. At that price, our model says the market is pricing in about 7.9% a year of cash-flow growth for five years, faster than the 3.8% a year revenue growth it has delivered.

10-Q on SEC EDGAR

Written from the company's filings and our models when each quarter's report arrives. Figures in older notes are as published at the time. Not investment advice.

The Fundamentalytics view

Next results ~January 18, 2027 (estimated)

IBM's trailing-twelve-month revenue grew 6.8% year on year, with a free-cash-flow margin of 21.0%. Where it stands out: free-cash-flow margin of 21.0% ranks 2 of 38 it consulting & other services companies we cover.

Our discounted-cash-flow model values the business at ~$220 per share in the base case (~$150–$310 across growth scenarios) — model values under stated assumptions, not a price target.

Current signal Free cash flow diverging from earnings: TTM free cash flow grew 17.5% while net income grew 41.3%: a 24pp divergence.

Assembled from SEC-filed figures — the full workings are on this page and in our methodology. Observations, not recommendations.

Highlights

How we pick these

Strengths

  • Strong cash generation. 21.0% of revenue turned into free cash flow, against a median of 5.1% for it consulting & other services companies we cover.

Things to watch

  • Volatile shares. Over the past year the shares showed annualised volatility of 48% and a beta of 0.8 against the S&P 500.
  • Below peers: long-term debt as % of assets. Long-term debt as % of assets of 36.6% ranks 21 of 27 it consulting & other services companies we cover (median 11.8%).

Latest results: FY2026 Q3

Filed October 22, 2026
Earnings per share
$2.95 against an average estimate of $2.87: beat by 2.7%
Revenue
$17.10bn, up 4.7% on a year earlier
Share reaction
+4.2% in the first session after the results on October 21, 2026, against -0.7% for the S&P 500
Guidance given
free cash flow $1bn (full-year 2026)
Next report
October 21, 2026; average EPS estimate $4.63

IBM's figures from its SEC filings and results release; estimates are the analysts' average. Not a recommendation.

Price chart

  • 1 day-2.1%
  • 1 week-0.4%
  • 1 month+13.4%
  • This year-13.0%
  • 1 year-15.7%
  • 5 years+151.6%
  • S&P 500 this year+11.2%

Closing prices to 2026-11-02. Price change only, dividends excluded.

Loading chart…

Third-party market data · may be delayed

At a glance

Trailing twelve months, from SEC filings

Profitability

Revenue (TTM)
$69.9B
Net margin
16.0%
EPS (TTM, diluted)
$11.72

Growth

Revenue growth
+6.8%
Change in growth rate
−1.1 pts
Share count change
+0.3%

Cash

Free cash flow (TTM)
$14.7B
FCF margin
21.0%
Stock pay % of revenue
2.8%

Earnings

Last results
October 21, 2026
Next results (est.)
January 18, 2027

News & updates

Updated November 2, 2026

Company announcements, filed results and changes that matter to shareholders.

  1. Partnership

    IBM extends US Open digital partnership to 2031

    IBM said it has renewed its agreement with the USTA for five years, securing its role as the official AI and cloud partner for the US Open through 2031. The company noted that its digital platforms recorded more than 270 million engagements during the 2026 tournament. The partnership, which began in 1995, will continue to support the event's online and mobile services.

    Company releaseRead source ↗
  2. Announcement

    IBM adds identity and access controls for AI agents

    IBM announced new tools at TechXchange 2026 to manage AI agent security. The company said HashiCorp Vault will issue short-lived credentials to limit agent access. IBM also introduced watsonx Orchestrate to help track and evaluate agents across different cloud platforms.

    Company releaseRead source ↗
  3. Our research
  4. Product

    IBM adds AI features to Ferrari app ahead of US Grand Prix

    IBM said it introduced new AI-powered tools to the Scuderia Ferrari mobile app ahead of the United States Grand Prix. The updates include a race timeline and summaries built with IBM Bob and watsonx. IBM reported a 35% rise in cumulative downloads and a 36% increase in monthly active users following the May 2025 relaunch.

    Company releaseRead source ↗
  5. Announcement
  6. Results
  7. Guidance
  8. Announcement

    IBM and partners release llm-d 1.0 for AI inference

    IBM said contributors released llm-d 1.0, an open source project for distributed AI inference. The update adds multi-tenant quality of service and zero-downtime operations for production environments. IBM Research reported a blended serving cost of about $0.11 per million tokens in one use case.

    Company releaseRead source ↗
  9. Leadership
  10. Insider trade
  11. Results
  12. Results

Refreshed hourly when new source data is available. Summaries are checked against company releases and SEC filings. Company announcement headlines are labelled when a checked summary is unavailable.

Valuation

IBM valuation models and calculator

What the price is pricing in

The share price implies about 6.9% a year of cash-flow growth for five years.That is close to the 4.0% a year revenue growth IBM has delivered.

  • Priced in6.9%
  • Last 12 months6.8%
  • 3 years a year4.5%
  • 5 years a year4.0%

Our cash-flow model with every input fixed except growth over the next five years, solved for the growth at which the model value equals the share price ($246.56, Nov 3, 2026). Cash-flow growth then fades to 2.5% a year; discount rate 8.5%. Delivered figures are revenue growth from SEC filings. This is a model exercise, not investment advice or a forecast of the share price. All companies

Fundamentalytics rating

model v1.6 · 2026-11-03
Hold12-month view
12-month price target
~$220
Price used
$246.56close November 3, 2026
Implied change
▼ 12%
Uncertainty
Medium

How we got here: a discounted-cash-flow model of IBM's free cash flow after stock-based pay with after-tax interest added back ($13.8B, FY2026 Q3 TTM), growing 4.4% and 5% in the next two years (forecasts, guidance and its record), then back to 5.7% by year five, and fading to 2.5%, discounted at 8.5%. Lower and higher growth cases span ~$150–~$310 ; that spread sets a 25% margin before we rate Buy or Sell.

Produced by Fundamentalytics' automated valuation model on November 3, 2026, using delayed market prices. Rating meanings, methodology and conflicts: recommendations disclosure and research disclaimer. General research, not personal advice — it does not consider your circumstances. Prices can fall as well as rise.

Our value per share comes from a discounted-cash-flow model of IBM's free cash flow after stock-based pay ( $13.8B, FY2026 Q3 TTM, with after-tax interest added back): growth for five years as below (the first two years from forecasts, guidance and the company's record), fading to 2.5%, discounted at 8.5%, then cash added and debt and other claims subtracted. These are model values under stated assumptions, not price targets or recommendations.

Valuation models

We value IBM as an operating company, with every model that fits that kind of business. Cost of equity 9.2%: the 10-year Treasury yield (4.9%) plus a beta of 0.95 times a 4.5% equity risk premium.

Value per share by model
Model Value per share In the combined value?
Cash-flow model (DCF) Free cash flow to the firm (after stock pay, with after-tax interest added back), grown then faded to 2.5%, discounted at 8.5% as the firm rate, less debt and other claims. ~$220 ~$150–$310 Primary model, counts double
Forward price-to-earnings vs peers Next year's consensus earnings per share times peers' typical (harmonic-mean) forward price-to-earnings. Uses analysts' consensus estimates (third-party data), not our forecasts. ~$120 ~$110–$220 Included
Residual income Book value plus the present value of returns above the cost of equity, fading over ten years. ~$93 ~$78–$110 Included
Justified price-to-book Book value times (return on equity - growth) / (cost of equity - growth): steady-state returns. ~$130 ~$110–$150 Included
Combined value Weighted average of the models that apply: the primary model (cash-flow model (dcf)) counts double. Models more than 5x or less than 0.2x the share price, or more than 3x away from the other models' median, are left out. ~$160 ~$93–$220 4 models

Different models fail in different ways, so where several apply we average them rather than trust one. Peer-based models compare IBM with IT Consulting & Other Services in our coverage, using third-party market data. Model values are estimates under stated assumptions, updated as new filings arrive; not price targets or investment advice. How each model works.

What moves the value

  • Revenue growth 5 points lower ▼ −31%
  • Revenue growth 5 points higher ▲ +40%
  • Free-cash-flow margin 1 point lower ▼ −5%
  • Last year's free-cash-flow margin change, if it persists ▲ +11%
  • Discount rate 1 point higher ▼ −18%
Value per share under different assumptions
Discount rate ↓ / growth → −5% growth0% growth5% growth10% growth15% growth20% growth
7% $137$212$311$442$612$832
8.5% $88$142$214$307$429$585
10% $58$100$155$227$319$438

Valuation multiples over time Market data may be delayed

At fiscal year end 20152016201720182019202020212022202320242025Now
Share price$84.33$105.59$101.38$78.51$97.02$95.89$111.86$123.76$150.80$210.01$290.30$252.51
Market value$82.9bn$101.2bn$95.0bn$71.9bn$86.6bn$86.0bn$101.2bn$112.9bn$139.0bn$196.8bn$275.4bn$240.6bn
+ Net debt (− = net cash)$32.2bn$34.3bn$34.9bn$41.5bn$62.2bn$55.1bn$51.8bn$47.8bn$49.9bn$46.1bn$54.1bn$61.6bn
Enterprise value$115.1bn$135.6bn$129.9bn$113.4bn$148.9bn$141.1bn$153.0bn$160.7bn$188.9bn$242.9bn$329.5bn$302.2bn
Multiples
Price / sales 1.0x1.3x1.2x0.9x1.5x1.6x1.8x1.9x2.2x3.1x4.1x3.4x
Price / earnings 6.3x8.5x16.5x8.2x9.2x15.4x17.6x68.9x18.5x32.7x26.0x21.5x
Price / free cash flow 6.1x7.5x7.0x6.1x6.9x5.5x9.4x12.4x11.0x15.9x22.8x16.4x
EV / EBITDA ————————————

Market value uses the period's diluted share count; figures for each fiscal year use that year's results and the price at year end. "Now" uses today's price and the last twelve months.

Moat

56 /100

Moderate moat

How hard IBM's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 17 / 20

    Cash operating profit has been a median 12.9% of total assets over 10 years.

  • Pricing power 15 / 20

    Gross margin has been a median 55.6%, moving by 5.7 percentage points (standard deviation) across 10 years.

  • Durability 5 / 20

    Net margin has been a median 11.3%; its worst year was 2.1%.

  • Cash conversion 20 / 20

    Free cash flow was positive in 10 of 10 years, at a median 19.4% of revenue.

  • Discipline 15 / 20

    The diluted share count rose 5.6% over five years; stock-based pay has been a median 1.7% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (71 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Forecasts and guidance

Analysts' consensus

Fiscal yearEPSGrowthRevenueGrowth
Current $12.42 +7% $70.6bn +5%
Next $13.24 +7% $73.2bn +4%

Next year's EPS estimate has moved +0.5% in 90 days, across 24 analysts.

How the EPS forecast has moved

The consensus EPS forecast for the current fiscal year is +0.8% on 90 days ago. In the last 30 days, 1 analyst raised IBM's forecast and 1 cut it.

Consensus EPS forecast IBM, last 90 days
$12.00 $12.50 $13.00 $13.50 90 days ago 60 days ago 30 days ago 7 days ago Now Current fiscal year, 90 days ago: $12.33 Current fiscal year, 60 days ago: $12.32 Current fiscal year, 30 days ago: $12.31 Current fiscal year, 7 days ago: $12.31 Current fiscal year, Now: $12.42 $12.42 Next fiscal year, 90 days ago: $13.17 Next fiscal year, 60 days ago: $13.16 Next fiscal year, 30 days ago: $13.15 Next fiscal year, 7 days ago: $13.15 Next fiscal year, Now: $13.24 $13.24

Average of analysts' published estimates (third-party data).

View chart data
Period Current fiscal yearNext fiscal year
90 days ago $12.33$13.17
60 days ago $12.32$13.16
30 days ago $12.31$13.15
7 days ago $12.31$13.15
Now $12.42$13.24

Earnings against estimates

Quarter toEstimateActualSurprise
Sept 2026 $2.87 $2.95 +2.7%
Jun 2026 $2.93 $2.93 −0.1%
Mar 2026 $1.81 $1.91 +5.5%
Dec 2025 $4.29 $4.52 +5.3%

Adjusted EPS as companies report it, against the average analyst estimate.

Management guidance

Earnings release, October 21, 2026
  • free cash flow full-year 2026 about $1bn Non-GAAP Raised
    “The company now expects full-year free cash flow to increase by more than $1 billion year-over-year” source

Figures and quotations are management's, copied from the company's own press release (SEC 8-K exhibit) and checked word for word against it. Forward-looking statements are the company's expectations, not ours and not advice; guidance can change or be missed.

How our valuation uses these forecasts

Our cash-flow model grows IBM's revenue by +4.4% next year and +5.0% the year after, then fades back toward its own record by year five. Next year's rate weighs analysts' consensus (+3.9%, weight 70%) and the company's own record (+5.7%, weight 30%) . How the weights are set.

Analyst recommendations

25 analysts, Oct 2026
Buy1248%
Hold1144%
Sell28%

Monthly trend

  1. Oct 2026391125
  2. Sep 2026391024
  3. Aug 20263101025
  4. Jul 2026311925

Counts of recommendations published by analysts covering IBM, by month. Source: Aggregated broker recommendations (third-party data). Aggregated counts only: we do not reproduce any firm's recommendation or price target, and these are not Fundamentalytics ratings.

Positioning

Short interest
2.3%
of tradable shares
Days to cover
3.52
at average volume
Short interest, 1 month
−11%
to October 15, 2026
Held by institutions
66%
of shares
Held by insiders
0.1%
of shares
Employees
264,300
full time

Consensus figures average analysts' published estimates (third-party data); guidance is the company's own. Neither is our forecast. Short interest is reported twice a month and lags. Market data may be delayed.

This section is general information, not investment advice or a personal recommendation, and it does not take account of your objectives or circumstances. Forecasts and guidance are estimates, not promises: companies miss their own guidance and analysts' figures are often revised. Prices can fall as well as rise, and you can lose money. See our disclaimer.

Share-price performance

Market data may be delayed

What moved the share price

Last 12 months −15.7%

$299.62 on October 31, 2025 to $252.51

ThenNowEffect
Revenue (last 12 months) $64.0bn $69.1bn +7.9%
Net margin 9.1% 15.5% +70.4%
P/E multiple 48.5x 22.4x −53.8%
Share count 944m 952m −0.9%

Biggest factor: p/e multiple.

Last 3 years +87.3%

$134.84 on November 3, 2023 to $252.51

ThenNowEffect
Revenue (last 12 months) $60.5bn $69.1bn +14.2%
Net margin 3.3% 15.5% +364.2%
P/E multiple 61.1x 22.4x −63.3%
Share count 917m 952m −3.7%

Biggest factor: net margin.

The effects multiply back to the price change exactly. Results are the last 12 months as known on each date (filings assumed public 45 days after quarter end).

Return and risk by year

Calendar year 202120222023202420252026 to date
Return
IBM+17%+11%+22%+39%+38%−13%
Industry peers (median)+9%−35%+4%+18%−23%−15%
S&P 500+29%−18%+26%+25%+18%+11%
Months that ended higher
IBM58%50%67%75%50%46%
S&P 50075%42%67%75%75%46%
Largest fall from a high during the year
IBM−18%−17%−15%−17%−20%−38%
S&P 500−5%−25%−10%−8%−19%−9%

Worst fall since November 2, 2015: 41% from March 1, 2017 to March 23, 2020. Getting back needed a 68% gain, reached on June 9, 2021, 443 days after the low.

Price behaviour

52-week range
$204.30 – $326.89
From 52-week high
−22.8%
vs 50-day average
+7.2%
vs 200-day average
+2.3%
Volatility (1 year)
48%
Beta vs S&P 500
0.83

Volatility is the annualised standard deviation of daily returns. Beta 1.5 means the shares typically moved 1.5% for each 1% move in the S&P 500 over the past year. Prices to November 2, 2026.

Share price after results

Next day
5 up, 7 down
typical move ±7.8%
After a week
6 up, 6 down
typical move ±9.4%
After a month
5 up, 6 down
typical move ±9.4%
Results releasedNext dayS&P 500 next day5 days21 days
October 21, 2026 +4.2% −0.7% +4.7% —
July 22, 2026 −1.8% −1.3% +7.6% +11.8%
July 14, 2026 −27.2% +0.8% −27.5% −18.1%
April 22, 2026 −9.6% +0.6% −11.2% −0.3%
January 28, 2026 +5.2% −0.2% −1.6% −17.8%
October 22, 2025 +1.0% +0.1% +9.3% +3.5%
July 23, 2025 −7.6% +0.9% −7.7% −14.5%
April 23, 2025 −4.8% +3.7% +0.4% +8.0%
January 29, 2025 +14.5% +0.1% +16.7% +12.6%
October 23, 2024 −6.0% −0.7% −11.8% −3.5%
July 24, 2024 +4.3% −2.8% +4.4% +7.4%
April 24, 2024 −7.3% −0.4% −9.7% −5.4%

From the close before the release date to the close 1, 5 and 21 trading days after it, so releases before the open and after the close are both captured. Past moves don't predict future ones.

Options strategies

All options ideas

How IBM’s listed options are priced, and three ways to use them that follow from our valuation. Quotes are delayed, read November 2, 2026. Check the live chain at your broker before trading.

Implied vs realised volatility

Options look fairly priced

Implied volatility is within its normal range against realised. Selling options earns the usual premium, nothing extra.

  • Implied is 1.29× the last 60 days’ realised volatility , richer than 71% of the 229 stocks we screen today.
  • Puts and calls are priced at about the same implied volatility.
  • Why: implied is not far enough above realised, or not unusual against our coverage.

Our rule for “rich”: implied at least 1.2× 60-day realised (beyond measurement noise), above 1-year realised (not just a calm spell), and in the top 20% of our coverage that day. Never with results inside the option’s life. These are our conventions, built on research showing option prices usually imply more movement than follows, most when the gap is wide. How we judge this.

Cash-secured put

Not offered: fundamentals grade B (needs B+ or better).

We suggest selling a put only on well-rated companies, at a strike where the price you would pay if assigned (strike less premium) is at or below our fair value.

IBM IBM Grade B $253.54

Own 100 shares, sell the $280 call expiring December 4, 2026 (32 days) for $1.97 a share — $197 per contract.

Previous session · Bid $1.97, ask $2.62, quoted Mon 2 Nov, 17:26 New York time with IBM at $253.54. Option prices move with the shares: check the live chain at your broker before trading.

  • If IBM ends below $280: you keep your shares and the $197 — 0.8% extra on the position, 8.9% a year at that pace.
  • If it ends above $280: your shares are sold at $280, a total return of 11.2% including the premium — at or above our value of ~$220.
$2.8k $0 −$5.0k Our value $220 Break-even $251.57 Price $253.54
Profit or loss per contract at expiry, by share price (including the shares bought at today's price).
Premium
$197
Annualised
8.9%
Break-even
$251.57
Max gain
$2,843
Chance of selling
~20%

Collar

Own the shares, buy the $245 put and sell the $280 call, both expiring December 4, 2026 (32 days).

  • Net cost of $5.73 a share ($573 per contract of 100 shares).
  • Worst case at expiry: -5.6%, if the shares fall below $245 (-3.4% from today).
  • Best case at expiry: +8.2%, if the shares rise above $280 (+10.4%); gains beyond that go to the call buyer.

Offered because the shares trade at or above our fair value of $220: a way to hold on with a floor under the price, paid for by giving up upside the model does not expect. Strikes near 25-delta; the put at its ask and the call at its bid. Protection has a cost over time: research on protective puts finds they have usually lowered returns.

General research, not personal advice. Options can lose you more than you expect and are not suitable for everyone: put sellers can be made to buy shares that keep falling, call sellers give up gains above the strike, and results or news can move prices sharply. Chances shown are approximations from each option’s delta. Spreads, fees and early assignment are not modelled.

IBM in five measures

Fundamentals grade B
Growth Profitability Cash Balance sheet Value

Growth, profitability, cash generation and balance sheet are percentiles against the companies we cover in the same industry, from SEC filings (100 = best). Value compares the share price with our modelled value range (50 = at our base value; higher = cheaper). A description of reported data and our model — not a quality score or advice.

Fundamentals

Revenue (TTM) IBM
$60B $65B $70B FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Revenue (TTM), FY23 Q4: $61.9B Revenue (TTM), FY24 Q1: $62.1B Revenue (TTM), FY24 Q2: $62.4B Revenue (TTM), FY24 Q3: $62.6B Revenue (TTM), FY24 Q4: $62.8B Revenue (TTM), FY25 Q1: $62.8B Revenue (TTM), FY25 Q2: $64B Revenue (TTM), FY25 Q3: $65.4B Revenue (TTM), FY25 Q4: $67.5B Revenue (TTM), FY26 Q1: $68.9B Revenue (TTM), FY26 Q2: $69.1B Revenue (TTM), FY26 Q3: $69.9B $69.9B

Source: SEC EDGAR filings. Retrieved October 23, 2026.

View chart data
Period Revenue (TTM)
FY23 Q4 $61.9B
FY24 Q1 $62.1B
FY24 Q2 $62.4B
FY24 Q3 $62.6B
FY24 Q4 $62.8B
FY25 Q1 $62.8B
FY25 Q2 $64B
FY25 Q3 $65.4B
FY25 Q4 $67.5B
FY26 Q1 $68.9B
FY26 Q2 $69.1B
FY26 Q3 $69.9B
Revenue growth, TTM YoY IBM
0% 5% 10% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Revenue growth, TTM YoY, FY23 Q4: 2.2% Revenue growth, TTM YoY, FY24 Q1: 2.5% Revenue growth, TTM YoY, FY24 Q2: 3.0% Revenue growth, TTM YoY, FY24 Q3: 2.3% Revenue growth, TTM YoY, FY24 Q4: 1.4% Revenue growth, TTM YoY, FY25 Q1: 1.2% Revenue growth, TTM YoY, FY25 Q2: 2.7% Revenue growth, TTM YoY, FY25 Q3: 4.5% Revenue growth, TTM YoY, FY25 Q4: 7.6% Revenue growth, TTM YoY, FY26 Q1: 9.7% Revenue growth, TTM YoY, FY26 Q2: 7.9% Revenue growth, TTM YoY, FY26 Q3: 6.8% 6.8%

Source: SEC EDGAR filings. Retrieved October 23, 2026.

View chart data
Period Revenue growth, TTM YoY
FY23 Q4 2.2%
FY24 Q1 2.5%
FY24 Q2 3.0%
FY24 Q3 2.3%
FY24 Q4 1.4%
FY25 Q1 1.2%
FY25 Q2 2.7%
FY25 Q3 4.5%
FY25 Q4 7.6%
FY26 Q1 9.7%
FY26 Q2 7.9%
FY26 Q3 6.8%
FCF margin (TTM) IBM
17% 18% 19% 20% 21% 22% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 FCF margin (TTM), FY23 Q4: 20.5% FCF margin (TTM), FY24 Q1: 21.2% FCF margin (TTM), FY24 Q2: 20.4% FCF margin (TTM), FY24 Q3: 20.0% FCF margin (TTM), FY24 Q4: 19.8% FCF margin (TTM), FY25 Q1: 20.0% FCF margin (TTM), FY25 Q2: 19.1% FCF margin (TTM), FY25 Q3: 19.1% FCF margin (TTM), FY25 Q4: 17.9% FCF margin (TTM), FY26 Q1: 18.7% FCF margin (TTM), FY26 Q2: 20.0% FCF margin (TTM), FY26 Q3: 21.0% 21.0%

Source: SEC EDGAR filings. Retrieved October 23, 2026.

View chart data
Period FCF margin (TTM)
FY23 Q4 20.5%
FY24 Q1 21.2%
FY24 Q2 20.4%
FY24 Q3 20.0%
FY24 Q4 19.8%
FY25 Q1 20.0%
FY25 Q2 19.1%
FY25 Q3 19.1%
FY25 Q4 17.9%
FY26 Q1 18.7%
FY26 Q2 20.0%
FY26 Q3 21.0%

Data: SEC EDGAR XBRL company facts (as filed in 10-K/10-Q); forms 10-K, 10-Q. Generated November 3, 2026. Definitions in our methodology.

Financial statements

US$ billions unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year 2009 Dec 2009 2010 Dec 2010 2011 Dec 2011 2012 Dec 2012 2013 Dec 2013 2014 Dec 2014 2015 Dec 2015 2016 Dec 2016 2017 Dec 2017 2018 Dec 2018 2019 Dec 2019 2020 Dec 2020 2021 Dec 2021 2022 Dec 2022 2023 Dec 2023 2024 Dec 2024 2025 Dec 2025 LTM Sept 2026
Income
Revenue 95.8 99.9 106.9 102.9 98.4 92.8 81.7 79.9 79.1 79.6 57.7 55.2 57.4 60.5 61.9 62.8 67.5 69.9
Gross profit 43.8 46.0 50.1 50.4 48.7 46.4 40.7 38.5 36.9 36.9 31.5 30.9 31.5 32.7 34.3 35.6 39.3 40.5
Net income 13.4 14.8 15.9 16.6 16.5 12.0 13.2 11.9 5.8 8.7 9.4 5.6 5.7 1.6 7.5 6.0 10.6 11.2
Diluted EPS $10.01 $11.52 $13.06 $14.37 $14.94 $11.90 $13.42 $12.38 $6.14 $9.52 $10.56 $6.23 $6.35 $1.80 $8.14 $6.43 $11.17 $11.72
Growth (year on year)
Revenue −7.6% +4.3% +7.1% −3.8% −4.4% −5.7% −11.9% −2.2% −1.0% +0.6% −27.5% −4.4% +3.9% +5.5% +2.2% +1.4% +7.6% +6.8%
Net income +8.8% +10.5% +6.9% +4.7% −0.7% −27.1% +9.7% −10.0% −51.5% +51.7% +8.1% −40.7% +2.7% −71.5% +357.7% −19.7% +75.9% +41.3%
Diluted EPS +12.6% +15.1% +13.4% +10.0% +4.0% −20.3% +12.8% −7.7% −50.4% +55.0% +10.9% −41.0% +1.9% −71.7% +352.2% −21.0% +73.7% +40.8%
Margins
Gross margin 45.7% 46.1% 46.9% 49.0% 49.5% 50.0% 49.8% 48.2% 46.7% 46.4% 54.6% 55.9% 54.9% 54.0% 55.4% 56.7% 58.2% 58.0%
Net margin 14.0% 14.9% 14.8% 16.1% 16.8% 13.0% 16.1% 14.9% 7.3% 11.0% 16.3% 10.1% 10.0% 2.7% 12.1% 9.6% 15.7% 16.0%
Free-cash-flow margin 18.1% 15.4% 14.7% 15.1% 14.1% 14.1% 16.7% 16.9% 17.1% 14.9% 21.6% 28.2% 18.7% 15.0% 20.5% 19.8% 17.9% 21.0%
Cash flow
Cash from operations 20.8 19.5 19.8 19.6 17.5 16.9 17.3 17.1 16.7 15.2 14.8 18.2 12.8 10.4 13.9 13.4 13.2 15.8
Capital spending 3.4 4.2 4.1 4.1 3.6 3.7 3.6 3.6 3.2 3.4 2.3 2.6 2.1 1.3 1.2 1.0 1.1 1.2
Free cash flow 17.3 15.4 15.7 15.5 13.9 13.1 13.7 13.5 13.5 11.9 12.5 15.6 10.7 9.1 12.7 12.4 12.1 14.7
Stock-based pay 0.6 0.6 0.7 0.7 0.6 0.5 0.5 0.5 0.5 0.5 0.7 0.9 1.0 1.0 1.1 1.3 1.7 2.0
Free cash flow after stock pay 16.8 14.7 15.0 14.8 13.2 12.6 13.2 13.0 13.0 11.3 11.8 14.6 9.8 8.1 11.6 11.1 10.4 12.7
Balance sheet
Cash 12.2 10.7 11.9 10.4 10.7 8.5 7.7 7.8 12.0 11.4 8.2 13.2 6.7 7.9 13.1 13.9 13.6 9.2
Total debt 26.1 28.6 31.3 33.3 39.7 40.7 39.9 42.2 46.8 52.9 70.4 68.3 58.5 55.7 63.0 60.0 67.7 70.8
Net debt (negative = net cash) 13.9 18.0 19.4 22.9 29.0 32.2 32.2 34.3 34.9 41.5 62.2 55.1 51.8 47.8 49.9 46.1 54.1 61.6
Diluted shares 1,341m 1,287m 1,214m 1,155m 1,103m 1,010m 983m 959m 937m 916m 893m 897m 905m 912m 922m 937m 949m 953m
Returned to shareholders
Dividends 2.9 3.2 3.5 3.8 4.1 4.3 4.9 5.3 5.5 5.7 5.7 5.8 5.9 5.9 6.0 6.1 6.3 6.3
Buybacks 7.4 15.4 15.0 12.0 13.9 13.7 4.6 3.5 4.3 4.4 1.4 — — — — — — —
Total returned 10.3 18.6 18.5 15.8 17.9 17.9 9.5 8.8 9.8 10.1 7.1 5.8 5.9 5.9 6.0 6.1 6.3 6.3

Source: SEC EDGAR XBRL company facts (US and foreign periodic filings); column headings link to the filing. EBITDA is operating income plus depreciation and amortisation. Free cash flow is cash from operations minus capital spending. Growth is left blank when last year's figure was a loss or under 2% of revenue. Share counts and EPS are restated for stock splits. A dash means the company didn't report the figure.

Financial health

2 of 6 checks passed · September 30, 2026
What it owns · $155.0bn
Short-term assets $31.2bnLonger-term assets $123.8bn
What it owes, and who funded it · $154.3bn
Short-term liabilities $36.5bnLonger-term liabilities $82.3bnShareholders' equity $35.5bn
  • Short-term assets cover short-term liabilities $31.2bn of assets due within a year against $36.5bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities $31.2bn short-term assets against $82.3bn of longer-dated liabilities.
  • More cash than debt $9.2bn of cash against $63.8bn of debt.
  • Debt below 40% of shareholders' equity Debt is 180% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 244% to 180% over five years.
  • A year's operating cash flow covers at least 20% of debt $15.8bn of operating cash flow against $63.8bn of debt.
  • Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From IBM's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Dividends, buybacks and capital spending

Dividends (TTM)
$6.3B
Diluted share count
+0.3%
year over year
Total shareholder yield
2.6%
dividends 2.6% + buybacks 0.0% of market value
Dividend payout ratio
57%
of net income paid out
R&D spending
13.0%
of revenue
Sales & admin spending
28.8%
of revenue
Days sales outstanding
30 days
receivables vs revenue

Competitors: side by side with peers

Closest by revenue in it consulting & other services
Last 12 months unless stated IBM ACN CTSH KD DXC BAH Median
Revenue, last 12 months $69.9bn $74.2bn $21.9bn $15.0bn $12.4bn $11.0bn $383m
Revenue growth, last 12 months 6.8% 6.5% 5.0% −0.6% −2.8% −6.2% 5.7%
Revenue growth, 3-year average 4.5% 5.0% 4.0% −4.0% −4.2% 3.1% 4.3%
Revenue growth, latest quarter 4.7% 6.2% 4.6% −3.3% −4.0% −3.9% 4.7%
Gross margin 58.0% 32.0% — 21.8% — 52.5% 28.0%
Operating margin — 15.4% 15.7% — 6.8% 9.3% 5.9%
Operating margin, 3-year average — 14.9% 15.4% — 7.5% 10.1% 7.5%
Net margin 16.0% 11.3% 11.8% 0.6% 0.9% 7.1% 2.2%
Cash from operations / revenue 22.7% 16.7% 12.3% 5.1% 10.4% 9.8% 6.7%
Free-cash-flow margin 21.0% 15.7% 10.8% 1.0% 8.3% 9.0% 5.0%
Free-cash-flow margin, 3-year average 20.0% 14.8% 10.7% 0.7% 9.4% 8.0% 6.7%
Stock pay / revenue 2.8% 2.8% 0.9% 0.4% 0.6% 0.7% 2.2%
Change in share count 0.3% −2.3% −4.8% −4.5% −7.9% −4.0% 0.9%

Median of all 40 companies we cover in it consulting & other services. Shaded: best of the six on that line (lowest for stock pay and share-count growth). 3-year figures average the last three 12-month periods; 3-year growth is compound annual. Source: SEC filings.

Peer comparison

40 it consulting & other services companies
Measure Company Peer median Rank
Revenue growth Growth 6.8% 6.5% 17 of 40
Change in growth rate Growth -1.1pp -0.8pp 22 of 40
Gross margin Profitability 58.0% 28.2% 4 of 34
Net margin Profitability 16.0% 2.5% 3 of 40
Free-cash-flow margin Cash generation 21.0% 5.1% 2 of 38
Stock pay as % of revenue Cash generation 2.8% 2.3% 22 of 36
Long-term debt as % of assets Balance sheet 36.6% 11.8% 21 of 27
Change in share count Balance sheet 0.3% 0.9% 18 of 39
Days sales outstanding Balance sheet 30 days 71 days 4 of 30

Rank 1 = best in the group (for spending, debt and dilution, lower ranks first).

Who owns it

Funds buying and selling
Reported value
$172B
Institutions reporting
3,619
Shares held vs prior quarter
▲ 3.5%
Positions opened / closed
280 / 137

Top buyers and sellers, Q2 2026: 1,900 institutions bought and 1,374 sold ; the biggest buyer was Wellington Management Group LLP (+6.3M shares) and the biggest seller Jpmorgan Chase & Co (−6.1M). See which funds bought and sold →

Largest reported holders, June 30, 2026
Manager Value Shares Share of 13F value Shares QoQ
Blackrock, Inc. $21.6B 76.8M 12.5% ▼ 1.0%
Vanguard Capital Management LLC $17.3B 61.4M 10.0% ▲ 0.9%
State Street Corp $15.8B 56.0M 9.2% ▲ 2.7%
Vanguard Portfolio Management LLC $8B 28.3M 4.6% ▲ 2.5%
Geode Capital Management, LLC $6.6B 23.4M 3.8% ▲ 1.6%
Morgan Stanley $4.9B 17.5M 2.9% ▼ 11.1%
Capital World Investors $4.6B 16.2M 2.6% ▼ 5.0%
Bank Of America Corp $4.2B 15.0M 2.4% ▼ 6.7%
Jpmorgan Chase & Co $3.5B 12.4M 2.0% ▼ 32.9%
Northern Trust Corp $2.9B 10.2M 1.7% ▼ 0.7%
Bank Of New York Mellon Corp $2.6B 9.3M 1.5% ▲ 29.3%
Norges Bank $2.4B 8.4M 1.4% —

From Form 13F filings with the SEC ( quarterly data sets), as reported by each manager for June 30, 2026 and filed up to 45 days later. 13F reports cover long US-listed positions of managers above $100M only, so this is not IBM's complete shareholder register. Values are as reported by the filers ; 19 inconsistently scaled filing rows were excluded.

Insider trading activity

Full insider history and chart
Insider purchases History → $417,155 3 trades by 3 insiders, last 12 months Insider sales History → $5.8M 1 trade by 1 insider · 0% under pre-set plans
Net ▼ $5.3M net selling
Insider Date Trade Shares Price Value
Thomas Robert David Senior Vice President August 26, 2026 Sell 25,000 $230.32 $5.8M
Miebach Michael Director February 25, 2026 Buy 434 $233.33 $101,264
Howard Michelle J Director February 25, 2026 Buy 50 $237.83 $11,891
Farr David N Director January 30, 2026 Buy 1,000 $304.00 $304,000

From insiders' Form 4 filings with the SEC. Excludes awards, option exercises and shares withheld for tax. "Pre-set plan" means the filing marks the trade as made under a Rule 10b5-1 plan. See every insider trade since five years ago, on a price chart.

Trades by members of Congress

All 183 trades and filings

In the last 12 months, 10 members of Congress disclosed 15 purchases and 19 sales of IBM shares.

  • Pete Sessions(R-TX 17):Purchase, $1,001 - $15,000, traded April 30, 3031 (as filed, after the report date), filed May 3, 2021
  • Pete Sessions(R-TX 17):Sale (full), $1,001 - $15,000, traded October 20, 2026, filed October 27, 2026
  • Lloyd Doggett(D-TX 37):Purchase, $1,001 - $15,000, traded September 10, 2026, filed October 5, 2026

Value ranges as filed; reports can arrive up to 45 days after a trade.

Earnings dates and SEC filings

Results announcements

Next expected around January 18, 2027 estimated from the company's past filing pattern, not announced

  • October 21, 2026
  • July 22, 2026
  • July 14, 2026
  • April 22, 2026
  • January 28, 2026
  • October 22, 2025

Recent SEC filings

Data status

When each part of this page on IBM was last updated.

DataLast updatedSource
Share priceExchange closing prices
Financial statementsSEC 10-K and 10-Q filings
News and updatesCompany releases and SEC 8-K filings
Analyst estimatesAggregated analyst estimates
Valuation and scoresOur models, from the filed figures

How we build and check these figures: methodology and data sources.

IBM in brief

What does IBM do?
IBM is a US-listed company in the IT consulting & other services industry. Its financial year ends in December.
What is IBM's stock ticker?
IBM trades under the ticker IBM on NYSE. This page brings together its financial statements, valuation models, ownership and recent company updates.
What is IBM's revenue, and how fast is it growing?
Over its most recent trailing twelve months, IBM reported revenue of $69.9B, 6.8% higher than a year earlier, according to its SEC filings.
What is IBM's free cash flow?
IBM's free-cash-flow margin is 21.0% of revenue over the trailing twelve months, ranking 2 of the 38 it consulting & other services companies we cover.
What is IBM's fair value (intrinsic value) per share?
Our discounted-cash-flow model of IBM's free cash flow after stock-based pay gives ~$220 per share in the base case, and ~$150–$310 across growth scenarios. These are model values under stated assumptions — not a price target or a recommendation.
Who are IBM's largest institutional shareholders?
By value reported in 13F filings for June 30, 2026, the largest reported holders are Blackrock, Inc., Vanguard Capital Management LLC and State Street Corp. 13F reports cover long US-listed positions of managers above $100M, filed up to 45 days after quarter end.
What is IBM's market cap?
On November 2, 2026, IBM's market capitalisation was about $241B, with a price-to-earnings ratio of 21.5 and net debt of $61.6B. Market figures come from third-party market data and may be delayed.
Does IBM pay a dividend?
Yes: IBM paid $6.3B in dividends over the trailing twelve months, a dividend yield of 2.63% and a payout ratio of 56.7%.
How much debt does IBM have?
IBM's debt-to-equity ratio is 179.6%, from its latest balance sheet (244.3% five years earlier). The financial health section below sets out its other solvency checks.
Who are IBM's competitors?
In our IT Consulting & Other Services peer group, the companies closest to IBM are Accenture, Cognizant, Kyndryl Holdings, Inc., DXC Technology Co and Booz Allen Hamilton Holding Corp. The side-by-side comparison below sets their revenue, margins and growth against IBM's.
Are insiders buying or selling IBM stock?
Over the last 12 months, IBM's directors and officers reported 3 open-market purchases and 1 sales on Form 4. The insider trading page charts every trade.
When is IBM's next earnings date?
Around January 18, 2027, estimated from the spacing of its past results announcements (8-K filings). That is an estimate, not a confirmed date — IBM announces its own schedule.