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

$250.04-2.47(-0.01%)After hours

Market Cap

$236.14B

P/E

21.1x

P/S

3.4x

P/B

6.6x

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 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: 83/100

Strongest: Cash & Earnings Quality (25/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability23/25

Growth20/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality25/25

Strengths

Rising free cash flowHigh ROERising earningsCash-backed earnings

No red flags in the last 8 quarters.

Valuation vs. 5-year range

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

P/E · 21.1x5y range 18.9x – 1863.8x

Currently near its 19-quarter median.

P/S · 3.4x5y range 1.7x – 4.3x

Currently above its 20-quarter median.

P/B · 6.6x5y range 5.4x – 10.0x

Currently near its 20-quarter median.

Price & Volume

Market Cap $236.14B

Metrics at a Glance

as of September 2026

Revenue & Profit

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

TTM Revenue: $69.87B
Q. Revenue: $17.10B
TTM EBITDA: $10.24B
TTM Op. Income: $10.24B
Q. Op. Income: $2.40B
TTM Net Income: $11.17B
Q. Net Income: $2.19B
EPS: $2.32
Shares Out.: $944.40M

$69.87B in TTM revenue grew 6.8% YoY, reaching $17.10B last quarter. TTM EBITDA of $10.24B and TTM operating income of $10.24B show growth is flowing through to the bottom line. TTM net income of $11.17B 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: 56.8%
EBITDA Margin: 14.0%
Op. Margin: 14.0%
Net Margin: 12.8%

Op. margin of 14.0% is down 0.2% YoY — costs are rising relative to revenue. Net margin at 12.8% and gross margin of 56.8% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

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

P/E Ratio: 21.1x
P/S Ratio: 3.4x
P/B Ratio: 6.6x

At 21.1x P/E, the stock trades within typical market levels. P/S of 3.4x and P/B of 6.6x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 36% — an improving trend.

Assets & Liabilities

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

Total Assets: $155.01B
Cash: $9.23B
Long-Term Debt: $56.80B
Book Value: $35.54B
D/E Ratio: 1.6
Debt/EBITDA: 23.7

With $155.01B in assets and $56.80B in long-term debt, D/E is 1.6and book value is $35.54B — moderate leverage. Across the last 8 quarters, debt/equity has fallen for 2 consecutive quarters — an improving trend.

Cash Flow

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

Op. Cash Flow: $4.03B
TTM Free Cash Flow: $14.66B
FCF Margin: 21.0%
FCF / Net Income: 1.3

TTM FCF of $14.66B on $4.03B 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 3 consecutive quarters — an improving trend.