International Business Machines (IBM) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

International Business Machines

NYSE•Technology•Information Technology Services

$237.75+0.26(<0.01%)After hours

Market Cap

$223.77B

P/E

20.9x

P/S

3.2x

P/B

6.5x

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. The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions. The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services. It operates a data streaming platform. The company has strategic partnerships with various companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors that include Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. It also has a strategic collaboration with Arm Holdings plc for the development of new dual-architecture hardware that helps enterprises run future AI and data intensive workloads; strategic partnership with three.ws to advance ai-powered 3d agent technology; and collaboration with Lightwell to help strengthen open source software supply chain. Additionally, it offers operational resilience, logistics, and future-ready technology to the UK Ministry of Defence through Team ORION. The company has a strategic partnership with OpenAI. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.

How this company scores

ExcellentMetricSide Score: 81/100

Strongest: Profitability (23/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability23/25

Growth20/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality23/25

Strengths

High ROERising earningsCash-backed earningsConsistent free cash flow

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 20.9x5y range 20.7x – 3293.6x

Currently below its 19-quarter median.

P/S · 3.2x5y range 2.7x – 4.3x

Currently near its 20-quarter median.

P/B · 6.5x5y range 6.5x – 10.1x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $223.77B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $69.10B
Q. Revenue: $17.16B
TTM EBITDA: $10.16B
TTM Op. Income: $10.16B
Q. Op. Income: $2.38B
TTM Net Income: $10.72B
Q. Net Income: $2.17B
EPS: $2.3
Shares Out.: $941.19M

$69.10B in TTM revenue grew 7.9% YoY, reaching $17.16B last quarter. TTM EBITDA of $10.16B and TTM operating income of $10.16B show growth is flowing through to the bottom line. TTM net income of $10.72B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 57.7%
EBITDA Margin: 13.9%
Op. Margin: 13.9%
Net Margin: 12.6%

Op. margin of 13.9% is down 1.2% YoY — costs are rising relative to revenue. Net margin at 12.6% and gross margin of 57.7% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 8% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 20.9x
P/S Ratio: 3.2x
P/B Ratio: 6.5x

At 20.9x P/E, the stock trades within typical market levels. P/S of 3.2x and P/B of 6.5x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 56% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $152.10B
Cash: $7.17B
Long-Term Debt: $56.21B
Book Value: $34.45B
D/E Ratio: 1.6
Debt/EBITDA: 23.6

With $152.10B in assets and $56.21B in long-term debt, D/E is 1.6and book value is $34.45B — moderate leverage. Over the past year, debt/equity is down 19% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $2.60B
TTM Free Cash Flow: $13.79B
FCF Margin: 20.0%
FCF / Net Income: 1.3

TTM FCF of $13.79B on $2.60B in operating cash flow. The FCF / Net Income ratio of 1.3x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.