International Business Machines IBM
Stock research in plain language · As of Oct 04, 2026 · updated once a week, after the trading week closes
What the company does
International Business Machines is a mega-cap company in the Technology sector (Information Technology Services), with a market value of $209.8B, 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 20.0 versus 41.5 for the median of the Technology sector in our universe (46 companies) — relatively cheap.
Revenue is growing 1% 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 240.59, 8% above the current price (their view, not ours).
The stock sits at 19% of its one-year range (0% = the low, 100% = the high).
The risks
- • Net debt is 1.7× shareholders' equity — high leverage.
- • The stock is 33% below its one-year high.
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 (3.0% a year).
What changed this week
Over the past week the stock fell 1.3% (for comparison: S&P 500 -0.2%, sector ETF XLK +1.8%).
This week's news
- Robinhood’s new AI bots will trade stocks while you sleep finance.yahoo.com · 2026-10-03
- How This Quantum Stock Stands to Gain an Edge From AI and Supercomputing finance.yahoo.com · 2026-10-02
- Quantinuum (QNT) Secured A $100 Million CHIPS Award finance.yahoo.com · 2026-10-02
- Arrow Electronics, IBD Stock Of The Day, Breaks Out Amid Triple-Digit Earnings Growth finance.yahoo.com · 2026-10-02
- IBM (IBM) Stock Could Be 18% Undervalued Following Z Shortfall Scrutiny finance.yahoo.com · 2026-10-02
- Amazon Is Both Landlord And Shareholder In Anthropic’s Giant Cloud Bet finance.yahoo.com · 2026-10-02
A description of facts from the filings and the market — not investment advice or a recommendation. "Cheap" and "expensive" are always relative to the comparison group.