At a glance
International Business Machines is worth $238.65B, about 23 times its fiscal 2025 earnings. Revenue grew 7.6% to $67.53B in fiscal 2025, with 15.7% kept as profit; over 5 years it has grown 4.1% a year. It pays a 2.67% dividend yield, raised every year for at least 9 years, and returned $30.26B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −15.7% over the past year with dividends reinvested and +20.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 37.3% in the 2020 crash (S&P 500: 33.7%) and 16.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 13 months and 1 month after the lows.
The business in plain English
IBM provides technology and expert help to large businesses and government agencies. It traces back to 1911, when it was formed in New York as the Computing-Tabulating-Recording Co., and took the IBM name in 1924. Its strategy centers on hybrid cloud, meaning technology that runs across a client's own data centers and public cloud services, and on artificial intelligence (AI). IBM earns money from software, consulting fees, servers and storage, and financing for clients.
In fiscal 2025, which ended December 31, 2025, revenue totaled $67.5 billion. Software was the largest segment at $30.0 billion, or 44.4%, and competes with Microsoft, Oracle, SAP and Alphabet's Google. Consulting helps clients plan and carry out technology projects. It supplied 31.2% and competes with firms such as Accenture and Capgemini. Infrastructure, mainly servers, storage and support services built for critical and AI workloads, made up 23.3%. Financing, which helps clients pay for IBM hardware, software and services, added 1.1%.
By region, the Americas supplied 49.4% of fiscal 2025 revenue; Europe, the Middle East and Africa 32.9%; and Asia Pacific 17.8%. IBM also works through partners including Amazon Web Services, Microsoft, Salesforce and SAP, some of which compete with it elsewhere.
Price history
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IBM -15.7% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Sales | $36.09B | 53.4% |
| Services | $30.71B | 45.5% |
| Financing | $737.0M | 1.1% |
By business segment
| Software | $29.96B | 44.4% |
| Consulting | $21.05B | 31.2% |
| Infrastructure | $15.72B | 23.3% |
| Financing | $737.0M | 1.1% |
By geography
| Americas | $33.34B | 49.4% |
| Europe/Middle East/Africa | $22.19B | 32.9% |
| Asia Pacific | $12.00B | 17.8% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $17.10B, up 4.7% from a year earlier, and net income was $2.19B (+25.6%).
- For fiscal 2025, revenue was $67.53B (+7.6% year over year; +4.1% a year from FY2020 to FY2025) with a 15.7% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +4.1% watch |
|---|---|
| Free cash flow margin | 17.9% good |
| Return on equity (FY2025) | 32.4% good |
| Return on assets (FY2025) | 7% watch |
| Net cash (cash minus debt) | $-54.58B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $55.18B | $5.59B | $15.58B |
| FY2021 | $57.35B | $5.74B | $10.73B |
| FY2022 | $60.53B | $1.64B | $9.09B |
| FY2023 | $61.86B | $7.50B | $12.69B |
| FY2024 | $62.75B | $6.02B | $12.40B |
| FY2025 | $67.53B | $10.59B | $12.10B |
Valuation snapshot
| Market value | $238.65B |
|---|---|
| P/E ratio | 22.6 |
| Dividend yield | 2.67% |
Rank among 1514 US companies
Market value at each year end
International Business Machines’s market value went from $150.32B at the end of 2016 to $238.65B on Nov 2, 2026, up 59%; since the end of 2025 it is down 14%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $238.65B | -13.8% |
| 2025 | $276.88B | +36.2% |
| 2024 | $203.26B | +36.1% |
| 2023 | $149.34B | +17.2% |
| 2022 | $127.38B | +6.3% |
| 2021 | $119.87B | +12.2% |
| 2020 | $106.83B | -5.5% |
| 2019 | $113.06B | +14.9% |
| 2018 | $98.38B | -27.3% |
| 2017 | $135.27B | -10.0% |
| 2016 | $150.32B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| IBM price data to Nov 2, 2026 | -13.0% | -15.7% | +23.5% | +20.6% | +10.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -13.0% |
| 2025 | +38.3% |
| 2024 | +39.3% |
| 2023 | +21.9% |
| 2022 | +10.7% |
| 2021 | +17.1% |
| 2020 | -1.2% |
| 2019 | +23.6% |
| 2018 | -22.5% |
| 2017 | -4.0% |
| 2016 | +25.2% |
| 2015 | -11.4% |
| 2014 | -12.4% |
| 2013 | -0.2% |
| 2012 | +5.9% |
| 2011 | +27.4% |
| 2010 | +14.3% |
| 2009 | +58.6% |
| 2008 | -20.8% |
| 2007 | +12.8% |
| 2006 | +19.8% |
| 2005 | -15.8% |
| 2004 | +7.2% |
| 2003 | +20.5% |
| 2002 | -35.5% |
| 2001 | +43.0% |
| 2000 | -20.9% |
| 1999 | +17.5% |
| 1998 | +77.4% |
| 1997 | +39.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 27.5% over that stretch · deepest drop along the way 44.3%, back to its old high 10.7 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 37.2% over that stretch · deepest drop along the way 37.3%, back to its old high 12.9 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 10.3% over that stretch · deepest drop along the way 16.7%, back to its old high 1 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 1 sales ($5.8M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 26, 2026 | Robert David Thomas Senior Vice President | sell | $5.8M |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.48% | Mar 31, 2026 |
ETFs with the most weight in IBM
| TDIV First Trust NASDAQ Technology Dividend Index Fund | 8.59% |
| TDVI FT Vest Technology Dividend Target Income ETF | 8.58% |
| NXTE AXS Green Alpha ETF | 6.64% |
| BUL Pacer US Cash Cows Growth ETF | 5.06% |
| SPDG SPDR Portfolio S&P Sector Neutral Dividend ETF | 4.96% |
| DOGG FT Vest DJIA Dogs 10 Target Income ETF | 4.85% |
| DVAL BrandywineGLOBAL - Dynamic US Large Cap Value ETF | 4.8% |
| VLUE iShares MSCI USA Value Factor ETF | 4.76% |
What could go wrong
- Big AI and quantum bets may not pay off. IBM is investing heavily in hybrid cloud, AI and quantum computing. If clients adopt these slowly, or rivals such as Microsoft, Amazon and Google move faster, IBM could lose market share and profit margins.
- Relies on open-source code it doesn't control. Some IBM offerings use open-source software, which is code shared freely and written mostly by outside programmers, with limited warranties. If those communities stop maintaining it, IBM's products could fall behind.
- AI products could bring legal trouble. IBM offers more AI tools and uses AI in its own operations. Problems with how AI is built or used could lead to lawsuits, regulatory action or damage to its reputation.
- Heavy debt and acquisition risks. As of September 30, 2026, IBM carried $63.8 billion of debt against $9.2 billion of cash and investments. Acquisitions can add debt, miss expected savings or bring inherited legal liabilities.
- Pension plans can strain results. IBM sponsors pension plans in the U.S. and abroad. Weak investment returns or falling interest rates can leave plans short of money, requiring extra cash from IBM and hurting reported results.
- Currency swings and overseas conditions. Europe, the Middle East, Africa and Asia Pacific supplied about half of fiscal 2025 revenue. A stronger dollar, or legal, political or health problems in those regions, could cut revenue and profit.
Recent events
- Quarterly results released
- Executive or board change; Bylaws or fiscal year changed
- Quarterly results released
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
- Investor presentation or announcement
- Executive or board change; Bylaws or fiscal year changed; Shareholder vote results
- Quarterly results released
- Bylaws or fiscal year changed
- Executive or board change
For income and retirement investors
IBM has raised its dividend at least nine years in a row through fiscal 2025, and the streak may be longer. The raises are small: dividends per share went from $6.51 in fiscal 2020 to $6.71 in fiscal 2025, about 0.6% a year. In fiscal 2025 the dividend took 59% of earnings and 51.7% of free cash flow, which is the cash left after running and investing in the business. The yield was 2.61% as of October 30, 2026. IBM reported no buybacks from fiscal 2021 to 2025, and its share count rose 5.1% from February 2022 to September 2026.
In past downturns, IBM shares fell 44.3% in 2008, recovering by October 2009, and 37.3% in the 2020 COVID crash, recovering in about 13 months. The 2022 drop of 16.7% was made up in about a month. In the year to October 30, 2026, the deepest fall was 37.5%. A single stock carries more risk than a diversified fund spread across many companies.
Questions investors ask
How does IBM make money?
IBM makes most of its money from software and consulting for large businesses and governments. In fiscal 2025, revenue was $67.5 billion. Software brought in 44.4%, consulting 31.2%, and infrastructure, mainly servers and storage, 23.3%. A small financing arm that helps clients pay for IBM products added 1.1%. By region, the Americas supplied 49.4% of revenue; Europe, the Middle East and Africa 32.9%; and Asia Pacific 17.8%.
Does IBM raise its dividend every year?
Yes, so far. IBM raised its dividend at least nine years in a row through fiscal 2025, and the streak may be longer. The raises have been modest, though. Dividends per share rose from $6.51 in fiscal 2020 to $6.71 in fiscal 2025, about 0.6% a year. At that pace, the income may not keep up with rising living costs. That matters for retirees who depend on it.
Can IBM afford its dividend?
Based on fiscal 2025, yes: earnings and free cash flow both covered it. IBM paid $6.3 billion in dividends, equal to 59% of earnings and 51.7% of free cash flow, which is the cash left after running and investing in the business. The yield was 2.61% as of October 30, 2026. One caution is debt: IBM carried $63.8 billion of debt against $9.2 billion of cash and investments as of September 30, 2026.
Is IBM still growing?
Yes, at a moderate pace. Revenue rose 7.6% to $67.5 billion in fiscal 2025 and grew about 4.1% a year from fiscal 2020 to 2025. Net income jumped 75.9% to $10.6 billion in fiscal 2025, after a dip in fiscal 2024. In the quarter ended September 30, 2026, revenue rose 4.7% to $17.1 billion and net income rose 25.6% to $2.2 billion, compared with a year earlier.
How has IBM stock performed?
Strongly over several years, poorly over the last one. As of October 30, 2026, IBM stock returned about 21.3% a year over five years and 10.4% a year over ten years. It gained 39.3% in 2024 and 38.3% in 2025. But it was down 14.7% over one year and 11.2% year to date, and it fell as much as 37.5% within the past year. Shares traded at 23.1 times fiscal 2025 earnings per share. This is called the price-to-earnings ratio, and it compares the stock price with profit.