Stocks · Technology · Information Technology Services
International Business Machines Corporation IBM
$222.64 -1.32% Close, Oct 2, 2026 · NYSE · Market cap $209.76B
Inexpensive vs sector
Next earnings report: Oct 21, 2026
Scroll or pinch to zoom, drag to move. Daily prices adjusted for splits. Markers: E = earnings (green beat, red miss), S = split, D = dividend.
Three things to know
- Diluted EPS over the last four quarters was $11.30, up 83.4% year over year.
- Net debt is 3.6× EBITDA, a high level of leverage.
- The stock is in a downtrend: below its 200-day average, with the 50-day average below the 200-day.
PromtFinance scores
Each score is a percentile within the Technology sector (0–100). Under each score: how the stock ranks in its sector on every component. As of Oct 5, 2026.
Growth41Weak
How fast revenue, earnings and cash flow are growing.
- Revenue growth (TTM, YoY)Bottom 37%
- EPS growth (TTM, YoY)Top 21%
- FCF growth (TTM, YoY)Bottom 47%
- Revenue growth, 3-year CAGRBottom 44%
- Revenue growth accelerationBottom 24%
Quality51Neutral
Returns on capital, margins, earnings quality and balance-sheet strength.
- Return on invested capitalTop 25%
- Gross marginTop 41%
- Operating marginTop 18%
- Cash conversion (OCF / net income)Bottom 36%
- Accruals (lower is better)Bottom 25%
- Net debt / EBITDA (lower is better)Bottom 13%
- Interest coverTop 39%
Value81Strong
How cheap the shares are relative to earnings, cash flow and their own history.
- Earnings yieldTop 17%
- Free-cash-flow yieldTop 25%
- EBITDA / enterprise valueTop 30%
- Sales / enterprise valueTop 48%
- P/E vs own 5-year history (lower is better)Top 24%
Momentum22Very weak
Strength and persistence of the price trend, including versus the S&P 500.
- 12-month return excluding last monthBottom 31%
- 6-month returnBottom 19%
- 1-year return vs S&P 500Bottom 30%
- Distance from 52-week highBottom 45%
- Trend checklist (0–4)Bottom 10%
Revisions7Very weak
Earnings surprises and analyst sentiment (estimate-revision history is being collected).
- Average EPS surprise, last 4 quartersBottom 36%
- Consecutive EPS beatsBottom 12%
- Share of analysts rating BuyBottom 25%
- Upside to consensus price targetBottom 37%
Stability63Neutral
Low volatility, shallow drawdowns, low market sensitivity and modest leverage.
- Volatility, 60 days (lower is better)Bottom 42%
- Maximum drawdown, 3 yearsTop 10%
- Beta vs S&P 500 (lower is better)Top 18%
- Net debt / EBITDA (lower is better)Bottom 13%
What changed
Latest four quarters versus the same period a year earlier (growth: versus one quarter earlier).
| Measure | Before | Now | |
|---|---|---|---|
| Revenue growth (YoY) | 9.7% | 7.9% | ↓ |
| EPS growth (YoY) | 94.7% | 83.4% | ↓ |
| Gross margin | 57.6% | 58.4% | ↑ |
| Operating margin | 17.1% | 17.9% | ↑ |
| FCF margin | 18.4% | 19.7% | ↑ |
Fundamental momentum
| Measure | Now (TTM) | Year / quarter before | Sector rank | |
|---|---|---|---|---|
| Revenue growth (TTM, YoY) | 7.9% | 9.7% | ↓ | Bottom 37% |
| EPS growth (TTM, YoY) | 83.4% | 94.7% | ↓ | Top 21% |
| Gross margin | 58.4% | 57.6% | ↑ | Top 41% |
| Operating margin | 17.9% | 17.1% | ↑ | Top 18% |
| Net margin | 15.5% | 9.1% | ↑ | — |
| Free-cash-flow margin | 19.7% | 18.4% | ↑ | — |
| Return on invested capital | 10.4% | — | Top 25% | |
| Revenue growth, 3-year CAGR | 3.7% | — | Bottom 44% |
Quality of earnings and balance sheet
- Cash conversion (OCF / net income)Above 1× means profits are backed by cash.
- 1.39×
- Accruals (net income − OCF) / assetsLower is better; high accruals can signal weaker earnings quality.
- -2.7%
- Stock-based compensation / revenueA cost to shareholders through dilution.
- 2.0%
- Receivables growth vs revenue growthReceivables growing much faster than sales can be a warning.
- +2.3 pp
- Net debt / EBITDABelow 1× is conservative; above 3× is high leverage.
- 3.58×
- Interest cover (operating income / interest)How many times operating profit covers interest.
- 6.4×
Shareholder returns
- Dividend yield (dividends paid, TTM)
- 3.01%
- Net buyback yield (TTM)
- -0.12%
- Shareholder yield
- 2.88%
- Share count change, 1 year
- +0.6%
- Share count change, 3-year CAGR
- +1.2%
Shareholder yield = dividends + net buybacks over the last four quarters, divided by market cap.
Based on the four quarters through Jun 30, 2026 (filed Jul 23, 2026).
Earnings and expectations
Earnings momentum
- Consecutive EPS beats
- 0
- Beats in the last 8 reports
- 7 of 8
- Average EPS surprise, last 4
- +4.6%
- Average 2-day reaction, last 8
- +0.2%
- Positive 20 days after report
- 4 of 8
Analysts
- Consensus price target
- $256.69
- Target vs current price
- +15.3%
- Analysts with a rating
- 51
- Share rating Buy or Strong Buy
- 47%
- Consensus rating
- Buy
How the stock reacted to recent reports
| Report date | EPS surprise | 2 days | 5 days | 20 days | 60 days |
|---|---|---|---|---|---|
| Jul 22, 2026 | +0.0% | -2.2% | +8.1% | +10.5% | — |
| Apr 22, 2026 | +5.5% | -1.5% | -8.9% | -13.0% | -16.8% |
| Jan 28, 2026 | +4.9% | +0.1% | +0.2% | -19.2% | -21.4% |
| Oct 22, 2025 | +8.2% | +1.9% | +10.8% | +2.8% | +8.4% |
| Jul 23, 2025 | +5.7% | +0.0% | -6.9% | -14.4% | -0.4% |
| Apr 23, 2025 | +12.7% | +1.9% | -0.6% | +10.8% | +18.7% |
| Jan 29, 2025 | +4.0% | +1.3% | +17.2% | +13.4% | +1.6% |
| Oct 23, 2024 | +3.6% | +0.2% | -9.4% | -9.5% | -3.4% |
Returns from the close before each report. Past reactions do not determine future ones.
Earnings history
| Report date | EPS | Estimate | Surprise | Revenue |
|---|---|---|---|---|
| Jul 22, 2026 | $2.93 | $2.93 | +0.0% | $17.16B |
| Apr 22, 2026 | $1.91 | $1.81 | +5.5% | $15.92B |
| Jan 28, 2026 | $4.52 | $4.31 | +4.9% | $19.69B |
| Oct 22, 2025 | $2.65 | $2.45 | +8.2% | $16.33B |
| Jul 23, 2025 | $2.80 | $2.65 | +5.7% | $16.98B |
| Apr 23, 2025 | $1.60 | $1.42 | +12.7% | $14.54B |
| Jan 29, 2025 | $3.92 | $3.77 | +4.0% | $17.55B |
| Oct 23, 2024 | $2.30 | $2.22 | +3.6% | $14.97B |
Valuation in context
| Multiple | Now | 5-year median | 5-year percentile | Sector rank (cheapness) |
|---|---|---|---|---|
| P/E (trailing) | 19.7× | 23.0× | 19th | Top 17% |
| P/E (forward) | 18.1× | — | — | — |
| EV / EBITDA | 16.5× | — | — | Top 30% |
| EV / Sales | 3.88× | — | — | Top 48% |
| Free-cash-flow yield | 6.50% | — | — | Top 25% |
| Earnings yield | 5.08% | — | — | Top 17% |
P/E over the past five years
Range 18.3× – 97.7× since Jun 30, 2021. Each point: price on the filing date divided by trailing-twelve-month EPS known then.
What moved the stock over the past year
- Price return, 1 year
- -22.3%
- Earnings per share growth (TTM)
- +83.4%
- Change in P/E multiple
- -56.8%
Most of the move came from a change in the valuation multiple.
Technical state
Trend checklist
- ✗ Price above 20-day average
- ✗ Price above 50-day average
- ✗ Price above 200-day average
- ✗ 50-day average above 200-day
- ✗ MACD histogram positive
Trend quality
- Days above the 50-day average
- 0
- Days above the 200-day average
- 0
- 50-day average slope (20 days)
- -4.1%
- 200-day average slope (20 days)
- -2.7%
- Distance from 50-day average
- -4.0%
- Distance from 200-day average
- -12.9%
- RSI (14)
- 41.5
- Relative volume
- 1.34×
Risk and drawdowns
- Volatility, 60 days (annualized)
- 67.9%
- Volatility vs own 5-year history
- 95th percentile · High for this stock
- Beta vs S&P 500 (2 years, weekly)
- 0.93
- Correlation with S&P 500
- 0.34
- Current drawdown from 1-year high
- -32.4%
- Maximum drawdown, 3 years
- -37.5%
Largest declines in the past six years
| From peak | To low | Decline | Length | Recovery |
|---|---|---|---|---|
| Jun 2, 2026 | Jul 22, 2026 | -37.5% | 34 days | Not yet recovered |
| Nov 12, 2025 | May 13, 2026 | -31.9% | 124 days | 12 days (Jun 1, 2026) |
| Jun 30, 2025 | Aug 12, 2025 | -20.4% | 30 days | 52 days (Oct 24, 2025) |
| Jun 11, 2021 | Nov 26, 2021 | -19.9% | 117 days | 246 days (Nov 17, 2022) |
| Dec 13, 2022 | May 11, 2023 | -19.7% | 102 days | 130 days (Nov 15, 2023) |
Declines of 10% or more from a closing high, measured on daily closes.
Financial statements
- Market cap
- $209.76B
- P/E (TTM)
- 19.7
- EPS, diluted (TTM)
- $11.30
- Revenue (TTM)
- $69.10B
- Dividend yield
- 3.03%
- 52-week range
- $199.19 – $332.46
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Revenue | $57.35B | $60.53B | $61.86B | $62.75B | $67.54B |
| Gross profit | $31.49B | $32.69B | $34.30B | $35.55B | $39.30B |
| Operating income | $6.87B | $8.17B | $9.82B | $10.07B | $12.49B |
| Net income | $5.74B | $1.64B | $7.50B | $6.02B | $10.59B |
| EPS (diluted) | $6.35 | $1.80 | $8.14 | $6.43 | $11.17 |
| Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | $14.97B | $17.55B | $14.54B | $16.98B | $16.33B | $19.69B | $15.92B | $17.16B |
| Net income | -$330.0M | $2.91B | $1.05B | $2.19B | $1.74B | $5.60B | $1.22B | $2.17B |
| EPS (diluted) | -$0.36 | $3.09 | $1.12 | $2.31 | $1.84 | $5.88 | $1.28 | $2.30 |
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Operating cash flow | $12.80B | $10.44B | $13.93B | $13.45B | $13.19B |
| Capital expenditure | -$2.77B | -$1.97B | -$1.81B | -$1.69B | -$1.09B |
| Free cash flow | $10.03B | $8.46B | $12.12B | $11.76B | $12.10B |
| Dividends paid | -$5.87B | -$5.95B | -$6.04B | -$6.15B | -$6.25B |
| Net share buybacks | -$319.0M | -$407.0M | -$402.0M | $745.0M | $710.0M |
Cash outflows are shown as negative numbers.
- Cash and short-term investments
- $8.13B
- Total assets
- $152.10B
- Total liabilities
- $117.56B
- Total debt
- $65.27B
- Net debt
- $58.10B
- Shareholders’ equity
- $34.45B
As of Jun 30, 2026 (filed Jul 23, 2026).
Dividends
| Ex-date | Amount | Paid |
|---|---|---|
| Aug 10, 2026 | $1.69 | Sep 10, 2026 |
| May 8, 2026 | $1.69 | Jun 10, 2026 |
| Feb 10, 2026 | $1.68 | Mar 10, 2026 |
| Nov 10, 2025 | $1.68 | Dec 10, 2025 |
| Aug 8, 2025 | $1.68 | Sep 10, 2025 |
| May 9, 2025 | $1.68 | Jun 10, 2025 |
| Feb 10, 2025 | $1.67 | Mar 10, 2025 |
| Nov 12, 2024 | $1.67 | Dec 10, 2024 |
Short interest
- Shares sold short
- 22,444,940
- Days to cover
- 4.56
- Change vs previous report
- +1.9%
FINRA short interest, settlement date Sep 15, 2026.
Stock splits
- Nov 4, 2021
- 523-for-500
- May 27, 1999
- 2-for-1
- May 28, 1997
- 2-for-1
- Jun 1, 1979
- 4-for-1
- May 29, 1973
- 5-for-4