IBM (IBM) stock
Information Technology · IT Consulting & Other Services
IBM (IBM) is an IT Consulting & Other Services company in the Information Technology sector, headquartered in Armonk, New York. As of October 23, 2026, IBM closed at $253.56, a market capitalization of $239.64 billion, the 48th largest company in the S&P 500. Over the last twelve months it generated $69.87 billion in revenue (+5% year over year) and $13.14 billion in free cash flow. The stock trades at 21.6x trailing earnings and 19.2x forward earnings.
- 1-year total return: -8.7% (dividends reinvested)
- 5-year return: +20.2% a year
- 52-week range: $199.19 – $332.46
- Gross margin 58.0%, operating margin 17.0%
- Dividend yield: 2.67%, 30 straight years of increases
- FI Handbook report card: C across 10 metrics
- 17th largest of 75 Information Technology stocks in the S&P 500
IBM price chart
1Y price change: -11.0% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| IBM | +8.9% | -12.7% | -8.7% | +26.8% | +20.2% | +10.4% | +8.3% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1962.
IBM key statistics
- Market cap
- $239.6B
- #48 in S&P 500
- P/E (TTM)
- 21.6x
- Forward P/E
- 19.2x
- EPS (TTM)
- $11.72
- Revenue (TTM)
- $69.9B
- +5%
- Free cash flow
- $13.1B
- Gross margin
- 58.0%
- Operating margin
- 17.0%
- Return on equity
- 34.8%
- Dividend yield
- 2.67%
- 52-week range
- $199.19 – $332.46
- Beta
- 0.72
- Price / sales
- 3.4x
- EV / EBITDA
- 17.8x
- Debt / equity
- 1.85x
- Employees
- 264,300
IBM report card
CTen fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth4.7%D
- Gross margin58.0%B
- Operating margin17.0%C
- FCF margin18.8%B
- Return on equity34.8%A
- Net debt / EBITDA3.4xD
- Forward P/E19.2xB
- PEG ratio2.2xD
- Shareholder yield2.7%C
- Share count change / yr1.1%D
International Business Machines financials
Revenue went from $79.9B in fiscal 2016 to $67.5B in fiscal 2025, shrinking 1.9% a year.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $79.9B | $79.1B | $79.6B | $57.7B | $55.2B | $57.4B | $60.5B | $61.9B | $62.8B | $67.5B |
| Gross profit | $38.5B | $36.9B | $36.9B | $31.5B | $30.9B | $31.5B | $32.7B | $34.3B | $35.6B | $39.3B |
| Net income | $11.9B | $5.8B | $8.7B | $9.4B | $5.6B | $5.7B | $1.6B | $7.5B | $6.0B | $10.6B |
| EPS (diluted) | $11.84 | $5.87 | $9.10 | $10.56 | $6.23 | $6.35 | $1.80 | $8.14 | $6.43 | $11.17 |
| Free cash flow | $13.5B | $13.5B | $11.9B | $12.5B | $15.6B | $10.7B | $9.1B | $12.7B | $12.4B | $12.1B |
| Buybacks | $3.5B | $4.3B | $4.4B | $1.4B | — | — | — | — | — | — |
| Dividends paid | $5.3B | $5.5B | $5.7B | $5.7B | $5.8B | $5.9B | $5.9B | $6.0B | $6.1B | $6.3B |
| Diluted shares | 1.0B | 980.5M | 958.5M | 892.8M | 896.6M | 904.6M | 912.3M | 922.1M | 937.2M | 948.7M |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into IBM?
A reverse DCF asks what growth the current price requires. With an enterprise value of $295.7B and $13.1B of trailing free cash flow, International Business Machines needs to grow free cash flow about 13.5% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew -4.9% a year over the last five years.
P/E ratio history
Current 22.7x vs. median 14.8x (10th–90th percentile 11.4x–35.0x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
IBM dividend
- Dividend yield
- 2.67%
- Annual dividend
- $6.76
- Years of increases
- 30
- 5-yr dividend growth
- 1.5%
- per year
- Payout ratio
- 58%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
IBM earnings
Next report: January 27, 2027. International Business Machines has beaten EPS estimates 1 quarters in a row.
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Oct 21, 2026 | $2.87 | $2.95 | +2.7% |
| Jul 22, 2026 | $2.93 | $2.93 | -0.1% |
| Apr 22, 2026 | $1.81 | $1.91 | +5.5% |
| Jan 28, 2026 | $4.29 | $4.52 | +5.3% |
| Oct 22, 2025 | $2.45 | $2.65 | +8.3% |
| Jul 23, 2025 | $2.65 | $2.80 | +5.5% |
| Apr 23, 2025 | $1.43 | $1.60 | +12.1% |
| Jan 29, 2025 | $3.78 | $3.92 | +3.8% |
Stocks like IBM
| Name | Today | 1Y | Mkt cap | P/E | |
|---|---|---|---|---|---|
 ACN Accenture | -3.62% | +3% | $152.6B | 18.4x | Compare |
 CTSH Cognizant Technology Solutions | -4.31% | +6% | $31.8B | 15.2x | Compare |
 IT Gartner | -1.77% | -8% | $14.5B | 20.8x | Compare |
 NVDA NVIDIA | -0.59% | +16% | $5.1T | 26.7x | Compare |
 AAPL Apple | -0.14% | +34% | $5.1T | 39.9x | Compare |
 MSFT Microsoft | +0.66% | +2% | $3.9T | 29.2x | Compare |
 AVGO Broadcom | -0.48% | -6% | $1.5T | 42.9x | Compare |
 MU Micron Technology | +2.46% | +325% | $992.9B | 11.8x | Compare |
IBM news
- IBM’s CEO Just Issued a Warning Message on AI Spending. He Ended Up Hurting His Own Stock. · Oct 24, 2026
- Dow and Small Caps Climb Weekly While Nasdaq Slips on Megacap Earnings Charges · Oct 23, 2026
- IBM’s ‘true ROI’ comment hits shares, exposing ETF risks · Oct 23, 2026
- IBM (IBM) Stock Shrugs Off Q3 Earnings As Margins Quietly Improve · Oct 23, 2026
- IBM's Software Growth Sped Up and Its Stock Barely Moved. I'd Start Buying. · Oct 23, 2026
IBM stock FAQ
What is IBM's market cap?
IBM's market capitalization is $239.64 billion as of October 23, 2026, ranking 48th in the S&P 500.
What is IBM's P/E ratio?
IBM trades at a trailing price-to-earnings ratio of 21.6x and a forward P/E of 19.2x. Its median P/E over the period we track is 14.8x.
Does IBM pay a dividend?
Yes. IBM pays $6.76 per share a year, a 2.67% yield. It has raised its dividend 30 years in a row. Dividends grew 1.5% a year over the last five years.
How much has IBM stock returned?
Including reinvested dividends, IBM returned -8.7% over one year, +20.2% a year over five years, +10.4% a year over ten years through October 23, 2026.
Is IBM stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies IBM must grow free cash flow about 14% a year for the next decade. Its free cash flow fell 5% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
When does IBM report earnings?
IBM is expected to report earnings on January 27, 2027. It has beaten EPS estimates 1 quarters in a row.
How many employees does IBM have?
IBM has about 264,300 full-time employees, or $264,351 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology