International Business Machines IBM

What the company does

International Business Machines is a mega-cap company in the Technology sector (Information Technology Services), with a market value of $239.6B, based in the USA.

It employs about 264,300 people and has been listed since Jan 02, 1962.

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

Cheap or expensive? relatively cheap

Its price-to-earnings (P/E) is 21.6 versus 38.7 for the median of the Technology sector in our universe (65 companies) — relatively cheap.

Revenue is growing 5% versus the same quarter last year.

On analysts' next-year forecasts the multiple drops to 17.4 — they expect higher earnings.

The average analyst price target is 257.22, 1% above the current price (their view, not ours).

The stock sits at 42% of its one-year range (0% = the low, 100% = the high).

The risks

• • Net debt is 1.6× shareholders' equity — high leverage.

Strengths

• ✅ Profitable — 13 of every 100 dollars of revenue stays as profit.
• ✅ Generates free cash flow — profit becomes cash in the bank.
• ✅ Most analysts rate it buy (12 vs 2).
• ✅ Pays a dividend (2.7% a year).

What changed this week

Over the past week the stock rose 9.2% (for comparison: S&P 500 -0.4%, sector ETF XLK -0.1%).

The company published its quarterly report this week — see the plain-language summary above.

This week's news

• Earnings Scoreboard: 82% firms beat EPS estimates, 79% post Y/Y earnings growth seekingalpha.com · 2026-10-24
  What the article says

  [Top view image of text THIRD QUARTER on office desk.] mohd izzuan Earnings season gathered momentum during the last week, with 76 S&P 500 companies reporting results across key sectors, including Financials, Communication Services, Consumer Discretionary, Industrials, and Energy. The results offered a fresh look at… source ↗

• Meta Just Burned Cash for the First Time Since Its IPO Year: Wall Street Raised Its Targets Anyway finance.yahoo.com · 2026-10-23
  What the article says

  Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Meta Platforms Inc. grew revenue 26% in the third quarter and beat its own forecast. It also spent more money than it brought in, a first in more than a decade of quarterly cash flow data. Free cash flow came in at… source ↗

• Dow and Small Caps Climb Weekly While Nasdaq Slips on Megacap Earnings Charges finance.yahoo.com · 2026-10-23
  What the article says

  VANCOUVER, BC, Oct. 23, 2026 /PRNewswire/ -- Stock Preachers News Commentary - Stocks closed a volatile earnings week with a split verdict: the Dow gained 0.64% and the Russell 2000 jumped 2.07%, while the Nasdaq Composite fell 0.45% and the S&P 500 slipped 0.22%. The VIX rose to 19.40 and the VXN climbed to 28.13 as… source ↗

• Midday Pulse: S&P 500 top intraday losers seekingalpha.com · 2026-10-23
  What the article says

  [Wall Street sign in Lower Manhattan, NYC] georgeclerk Here's a quick look at the stocks seeing the steepest intraday declines across the S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500]) on Friday. Wall Street's major averages were mixed on Friday, while technology stocks continued to lag amid artificial… source ↗

• Midday Pulse: S&P 500 top intraday gainers seekingalpha.com · 2026-10-23
  What the article says

  [Wall Street New York stock exchange stock market] alexsl Here's a quick look at the stocks seeing the strongest intraday gains across the S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500]) on Friday. Wall Street's major averages were mixed on Friday, while technology stocks continued to lag amid artificial… source ↗

• Western Digital's Q1 Earnings & Revenues Beat, Dividend Hiked by 17% finance.yahoo.com · 2026-10-23
  What the article says

  Western Digital Corporation WDC reported first-quarter fiscal 2027 non-GAAP earnings of $4.64 per share, which surpassed the Zacks Consensus Estimate of $4.09. The bottom line increased 161% year over year and 30% sequentially, exceeding the high end of management's guidance of $4 (+/- 15 cents). The company reported… source ↗

What changed since last week

• Risk flag cleared: deep drawdown from the high.

• Risk flag cleared: earnings report coming up.

• The price rose 11.3% since the last summary.

• The average analyst target moved from 240.56 to 257.22.

• A new quarterly report was published (quarter ended Sep 30, 2026).