IBM International Business Machines Corporation
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Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Information Technology Services · Armonk, NY · 264,300 employees · ibm.com
International Business Machines Corporation provides enterprise technology solutions across software, consulting, and infrastructure segments, alongside client financing operations. The company generates revenue by providing hybrid cloud and artificial intelligence platforms, executing technology consulting projects, and supplying storage and server hardware.
Bull case
The company converts a substantial share of its revenue into free cash flow after factoring in stock compensation. Top-line growth has also accelerated, including contributions from acquired businesses, while selling artificial intelligence products to clients provides a tailwind.
- The price assumes about +6% a year cash-flow growth; it delivered +7% a year over three years, including acquisitions.
- Valued below what companies with similar growth, margins and size trade at.
- Turns 17% of revenue into free cash after stock pay.
- Annual revenue growth rose from +3% to +8%, including acquired businesses.
Bear case
The measurements do not currently make a case against the business.
- The share price trend is still falling.
Features
- V-ACCELERATING Growth accelerating Annual revenue growth rose from +3% to +8%, including acquired businesses. Shared by most companies we track
AI impact
Sells AI to its customers Tailwind
The company sells enterprise software, consulting, and computer infrastructure. Its key advantage is positioning its software to connect business workflows and automated agents, alongside hardware that powers data workloads, while the reports do not show any risks to its business.
Where AI helps it
- Its software sits where AI agents would do the work (minor)
- Sells what AI workloads consume (minor)
- Uses AI to lower its own costs (minor)
In the company's words
Our hybrid cloud platform and AI technology support clients’ digital transformations and helps them reimagine critical workflows, at scale, and modernize applications to increase agility, drive innovation and create operational efficiencies.
Assessed by AI from the company's own annual report filed 24 Feb 2026 and quarterly report filed 23 Jul 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
IBM is at the 34th percentile of its own valuation history. Depending on how far back you look, it ranges from the 30th to the 67th percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
What the price assumes
The measured price implies roughly +5.9% annual cash-flow growth, between -0.4% and +10.5% under other reasonable assumptions. Over the last three years it delivered +6.6% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not triggered — Margin break
- Not triggered — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.