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IBMIBM

IT Consulting & Other Services · Armonk, New York · In the S&P 500
Solid business
$257.81−0.18%After hours: $257.47 (−0.13%)At the close, 30 Oct · Prices from CNBC, may be delayed
▼ 16.4% over 1 year
IBM over 1 yearDaily close, $, to 30 Oct 2026
$300Nov2026MarMayJulSep$257.81$300NovMarJul$257.81
Source: Nasdaq daily closes
Market value$244B
Price to earnings19.5x
Forward P/E20.3x
Dividend yield2.62%
Year to date−13.0%
One year−16.4%
Next earningsNot scheduled
SectorInformation Technology
52-week range (closes)
$205.77$329.23

Quality and valuation

How IBM compares with other information technology stocks. A description, not a recommendation.

IBM and 6 it consulting & other services peers. Across: valuation (P/E) against the sector. Up: business quality against the sector. Hover or tap a logo for its numbers.

Business quality: about averageValuation: in line with its sector

An average business among information technology companies, priced about in line with them.

IBM trades at 20.3 times the next 12 months of expected earnings, against a median of 22.2x for the 99 information technology stocks we cover. The quality score blends where it ranks on revenue growth, gross margin, operating margin and free-cash-flow margin (net margin for banks and insurers) over the last 12 months, from SEC filings.

  • Revenue grew slower than the sector median: +6.8% vs +20.6%
  • Keeps less of each sale (gross margin): 58.0% vs 61.5%
  • Turns less of its sales into cash: 21.0% vs 21.7%
  • Keeps more of its revenue as profit (net margin): 16.0% vs 15.6%
IBM trades at 20.3x forward earnings, below the sector medianForward p/e, IT Consulting & Other Services peers
MU5.0xNVDA16.9xAVGO18.8xTSM19.8xIBM20.3xMSFT26.5xAAPL37.4xAMD44.8xSector median 22.2xMU5.0xNVDA16.9xAVGO18.8xTSM19.8xIBM20.3xMSFT26.5xAAPL37.4xAMD44.8xSector median 22.2x
Source: CNBC quotes; Mostly Markets
At 22.0x earnings, IBM is cheaper than its average since Oct 2024Price over the last 12 months of reported (GAAP) diluted EPS
P/EUsual range (±1 s.d.)
30x40x50xAverage 33.0x2025202622.0x40xAverage 33.0x2025202622.0x
Source: Nasdaq prices; SEC filings

Financials

From IBM's SEC filings, through the quarter ending 30 Sep 2026. Hover or tap a bar for its value.

Revenue grew 4.7% from a year earlierQuarterly revenue, $bn, latest Q3 ’26
$0bn$5bn$10bn$15bnQ4 ’24Q2 ’25Q4 ’25$17.1bnQ3 ’26$0bn$10bnQ4 ’24Q2 ’25Q4 ’25$17.1bnQ3 ’26
Source: SEC filings
Growth sped up to +4.7% last quarterRevenue growth, year on year, %
0%5%10%Q4 ’24Q2 ’25Q4 ’254.7%Q3 ’260%5%10%Q4 ’24Q2 ’25Q4 ’254.7%Q3 ’26
Source: SEC filings
Free cash flow was $14.7 billion over 12 monthsQuarterly free cash flow (operating cash flow minus capex), $bn
$0bn$2bn$4bnQ4 ’24Q2 ’25Q4 ’25$3.7bnQ3 ’26$0bn$2bn$4bnQ4 ’24Q2 ’25Q4 ’25$3.7bnQ3 ’26
Source: SEC filings
Diluted EPS was $2.30 last quarterQuarterly diluted earnings per share, $
$0$2$4Q4 ’24Q2 ’25Q4 ’25$2.30Q3 ’26$0$2$4Q4 ’24Q2 ’25Q4 ’25$2.30Q3 ’26
Source: SEC filings
Last 12 monthsIBMSector median
Revenue growth+6.8%+20.6%
Gross margin58.0%61.5%
Free cash flow margin21.0%21.7%
Price to earnings19.5x33.1x

Stories on IBM

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Similar companies

IT Consulting & Other Services, by market value.

CompanyPriceTodayYTDValue
AAPLApple$344.63−1.23%+26.8%$5.03T
NVDANvidia$204.64−4.22%+9.7%$4.93T
MSFTMicrosoft$521.91−1.55%+7.9%$3.88T
TSMTaiwan Semiconductor$406.13−5.95%+33.6%$2.11T
AVGOBroadcom$326.08−5.48%−5.8%$1.56T
MUMicron Technology$884.74−5.30%+210.0%$1.00T
AMDAMD$504.80−10.88%+135.7%$824B
ASMLASML$1,565.90−6.55%+46.4%$608B