Stock · IBM · Technology
United States · Large Cap · listed since 1962 · Revenue 12 mo. $69.9B
Price as of 11/06/2026
Summary
52.3 of 100
Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.
Analysis
What the price requires
If free cash flow stays at €10.9B (2025), it supports €120.7B. The remaining €89.6B of the market value assume it grows 7.8% a year for 10 years and not at all afterwards.
Required FCF growth per year
7.8%
no growth afterwards
Price to operating cash flow 14.8×, within its usual range.
Middle half of 20 quarters: 11.0× to 16.7×, median 12.8×.
Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.
with respect to the priced-in expectation
with respect to the priced-in expectation
AI summary of the 2025 annual report
A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.
Form 10-K, fiscal year ended 12/31/2025, filed 02/24/2026. Open the report at the SEC
| Segment | Share | Revenue |
|---|---|---|
| Software | 44.4% | $30B |
| Consulting | 31.2% | $21.1B |
| Infrastructure | 23.3% | $15.7B |
| Financing | 1.1% | $737M |
From the report's structured data (XBRL), not from the language model. The sum can differ slightly from group revenue.
IBM's Financing segment offers client and commercial financing, which helps clients buy hardware, software and services.
Financing provides client and commercial financing, facilitating IBM clients’ acquisition of hardware, software and services.The company's hybrid cloud and AI platforms let clients carry out digital and AI transformations across their applications, data and environments.
Our hybrid cloud and AI platforms allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.Consulting combines strategy, experience design, technology and operations expertise across industries to deliver transformation for clients.
Consulting integrates strategy, experience design, technology and operations expertise by domain across industries to deliver transformation for clients.IBM says it is positioned in the growing hybrid cloud infrastructure market. It provides on-premises and cloud-based server and storage solutions.
IBM is well positioned in the growing hybrid cloud infrastructure market, providing on-premises and cloud-based server and storage solutions.Clients include many enterprises worldwide, from small and medium businesses to the largest organizations and governments.
The company’s client base includes many enterprises worldwide, from small and medium businesses to the world’s largest organizations and governments, with a significant portion of the company’s revenue coming from global clients across many sectors.Customers include many government bodies inside and outside the U.S., such as the U.S. federal government and state and local bodies.
The company’s customers include numerous governmental entities within and outside the U.S., including the U.S. Federal Government and state and local entities.The company's principal methods of competition are technology innovation, performance, price, quality, brand, breadth of offerings, talent, client relationships and trust, the ability to deliver business value, and service and support.
Our principal methods of competition are: technology innovation; performance; price; quality; brand; our breadth of capabilities, products and services; talent; client relationships and trust; the ability to deliver business value to clients; and service and support.Cloud service providers use innovation in technology and service delivery to compete with traditional providers. They also offer extra routes to market for server and storage systems.
Further, cloud service providers are leveraging innovation in technology and service delivery to compete with traditional providers and to offer additional routes to market for server and storage systems.The company could be suspended or debarred as a government contractor. It could also face civil and criminal fines and penalties.
The company could be suspended or debarred as a governmental contractor and could incur civil and criminal fines and penalties, which could negatively impact the company’s results of operations, financial results and reputation.Certain of the company's businesses rely on a single supplier or a limited number of suppliers, including for server processor technology.
Certain of the company’s businesses rely on a single or a limited number of suppliers, including for server processor technology for certain semiconductors.The company's patents and other intellectual property may not stop competitors from independently developing similar or duplicate products and services.
The company’s patents and other intellectual property may not prevent competitors from independently developing products and services similar to or duplicative to the company’sIn an extended financial market downturn, the company could be required to provide extra pension plan funding. This creates liquidity risk that could hurt its financial flexibility.
In addition, in a period of an extended financial market downturn, the company could be required to provide incremental pension plan funding with resulting liquidity risk which could negatively impact the company’s financial flexibility.Since the last quarter
Q2 → Q3 2026
7 more unchanged: Revenue, 12 mo., Gross margin, EBIT margin, FCF margin, Net debt, Shares outstanding, Return on equity
Derivation
Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.
Price as of 11/06/2026.
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Return on equity | 32.45% | 14.60% | Rank 83 |
| Return on capital (Greenblatt) | 138.37% | 29.77% | Rank 87 |
| EBIT margin | 18.50% | 17.40% | Rank 54 |
| FCF margin | 17.92% | 18.54% | Rank 49 |
| Gross margin | 58.19% | 48.47% | Rank 62 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Revenue growth, 1 year | 7.62% | 12.70% | Rank 31 |
| Earnings growth, 3 years per year | 83.82% | 9.54% | Rank 98 |
| Earnings growth, 5 years per year | 12.36% | 14.07% | Rank 42 |
| Sustainable growth (ROE × retained earnings) | 1.62% | 2.87% | Rank 34 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Earnings yield | 4.56% | 2.64% | Rank 73 |
| FCF yield | 5.17% | 3.06% | Rank 71 |
| EV/saleslower is better | 4.25 | 5.18 | Rank 59 |
| EV/EBITlower is better | 22.97 | 26.24 | Rank 59 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Share price, 1 year | −31.19% | −0.59% | Rank 17 |
| Share price, 6 months | 7.12% | −4.46% | Rank 65 |
| Share price, 3 months | 8.38% | −5.84% | Rank 72 |
| Distance from 52-week high | −25.58% | −33.23% | Rank 61 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Accruals (Sloan)lower is better | 5.33% | 1.65% | Rank 36 |
| Change in share countlower is better | 1.23% | −0.17% | Rank 20 |
| Dividend streak in years | 31 | 8 | Rank 100 |
| Price reaction to results, market-adjusted | 1.37% | −1.57% | Rank 66 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Equity ratio | 21.50% | 53.98% | Rank 13 |
| Net debt/EBITDAlower is better | 3.05 | −0.20 | Rank 7 |
| Debt to equitylower is better | 2.06 | 0.33 | Rank 6 |
| Volatility, 1 yearlower is better | 48.40% | 50.37% | Rank 58 |
Ten years in figures
| Year | Revenue, $B | EBIT margin | FCF, $B | Shares | Net debt, $B |
|---|---|---|---|---|---|
| 2016 | 79.9 | 18.4% | 12.9 | 959M | 34.3 |
| 2017 | 79.1 | 16.6% | 13.0 | 937M | 34.9 |
| 2018 | 79.6 | 16.6% | 11.3 | 916M | 34.4 |
| 2019 | 57.7 | 13.1% | 11.9 | 893M | 56.1 |
| 2020 | 73.6 | 9.4% | 15.2 | 897M | 49.7 |
| 2021 | 57.4 | 11.9% | 10.4 | 905M | 48.5 |
| 2022 | 60.5 | 13.5% | 8.6 | 912M | 46.1 |
| 2023 | 61.9 | 12.2% | 13.4 | 922M | 46.9 |
| 2024 | 62.8 | 16.1% | 11.8 | 937M | 44.4 |
| 2025 | 67.5 | 18.5% | 12.1 | 949M | 53.5 |
4 of 7 StockScorer Score rules met · How the score is built
International Business Machines mainly meets criteria in the Valuation category. Result from 18 strategies checked.
International Business Machines is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.
4 of 7 rules met
6 of 11 points
Detail data
Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.
With a free account, you can see the match across all strategies checked in one complete overview.
Selected fundamental metrics for International Business Machines.
| Metric | Stock | Sector |
|---|---|---|
| P/E ratio | 21.9 | 35.1 |
| P/B ratio | 7.1 | 5.5 |
| Return on equity (ROE) | 32.4% | 14.6% |
| Equity ratio | 21.5% | 54.0% |
| Debt-to-equity (D/E) | 2.06 | 0.33 |
| Dividend yield | 2.8% | 0.9% |
How comparable stocks in the same sector score in the StockScorer model.
| Symbol | Company | Rating |
|---|---|---|
| IBM | International Business Machinesthis page | |
| ACN | Accenture plc | Low4.5 |
| TCS.NS | Tata Consultancy Services Limited | locked |
| INFY.NS | Infosys Limited | locked |
| HCLTECH.NS | HCL Technologies Limited | locked |
| 6701.T | NEC Corp. | locked |
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