olivLaw · US equity research
IBM IBM
Computer & office Equipment · SIC 3570 · Vertical: Industrial machinery and computer equipment (SIC 357x)
IBM (International Business Machines Corporation) is a global technology company focused on hybrid cloud and artificial intelligence. In the third quarter of 2026 it reported revenue of 17.1 bn USD, up 4.7 percent as reported and 5.6 percent at constant currency. For full-year 2026 the company keeps guidance of 4-5 percent constant currency revenue growth and expects free cash flow to rise by more than 1 bn USD.
At the close of 03 Nov 2026, IBM (IBM) stock was 250.04 USD (−0.98% on the day), with market capitalisation 236.3 bn USD, P/E 21.3 on diluted EPS of 11.73 USD over the last 12 months, dividend yield 2.70%, beta 0.78, 52-week range 205.77–329.23 USD. Latest reported quarter (Q3 2026): revenue of 17.1 bn USD (+4.7% YoY), net income of 2.2 bn USD (+25.6% YoY), diluted EPS 2.30 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 59.1
- strong (55–70)
- Bollinger (20, 2)
- 217.36 – 266.35
- in the upper half of the band · %B 0.67 · band width 20.3%
- SMA 50 / 200
- 235.88 / 248.66
- mixed trend
- MACD (12, 26, 9)
- 6.49 / 5.46
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +12.3% | −2.0% | +14.3 pp | — |
| 3 months | +6.3% | −2.2% | +8.5 pp | — |
| 6 months | +9.2% | +4.3% | +4.9 pp | — |
| Year to date | −15.6% | +10.6% | −26.2 pp | — |
| 1 year | −17.9% | +10.5% | −28.4 pp | +77.6% |
| 3 years | +69.1% | +73.7% | −4.6 pp | +209.3% |
| 5 years | +106.9% | +61.7% | +45.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 17.6 bn | 14.5 bn | 17.0 bn | 16.3 bn | 19.7 bn | 15.9 bn | 17.2 bn | 17.1 bn |
| Cost of revenue | 7.1 bn | 6.5 bn | 7.0 bn | 7.0 bn | 7.8 bn | 7.0 bn | 7.3 bn | 7.4 bn |
| Gross profit | 10.4 bn | 8.0 bn | 10.0 bn | 9.4 bn | 11.9 bn | 9.0 bn | 9.9 bn | 9.7 bn |
| Research & development | 2.0 bn | 2.0 bn | 2.1 bn | 2.1 bn | 2.2 bn | 2.2 bn | 2.3 bn | 2.4 bn |
| SG&A | 4.9 bn | 4.9 bn | 5.0 bn | 4.7 bn | 5.5 bn | 5.1 bn | 5.0 bn | 4.6 bn |
| Interest expense | 424.0 m | 455.0 m | 510.0 m | 492.0 m | 478.0 m | 473.0 m | 486.0 m | 491.0 m |
| Pre-tax income | 3.3 bn | 1.2 bn | 2.6 bn | 2.4 bn | 4.1 bn | 1.4 bn | 2.5 bn | 2.5 bn |
| Income tax | 379.0 m | 103.0 m | 404.0 m | 686.0 m | -1.4 bn | 172.0 m | 313.0 m | 298.0 m |
| Net income | 2.9 bn | 1.1 bn | 2.2 bn | 1.7 bn | 5.6 bn | 1.2 bn | 2.2 bn | 2.2 bn |
| Diluted EPS | 3.09 ≈ | 1.12 | 2.31 | 1.84 | 5.88 ≈ | 1.28 | 2.27 | 2.30 |
| Operating cash flow | 4.3 bn | 4.4 bn | 1.7 bn ≈ | 3.1 bn ≈ | 4.0 bn | 5.2 bn | 2.6 bn ≈ | 4.0 bn ≈ |
| Capex | 303.0 m | 244.0 m | 210.0 m ≈ | 255.0 m ≈ | 382.0 m | 232.0 m | 229.0 m ≈ | 332.0 m ≈ |
| Dividends paid | 1.5 bn | 1.5 bn | 1.6 bn ≈ | 1.6 bn ≈ | 1.6 bn | 1.6 bn | 1.6 bn ≈ | 1.6 bn ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 55 percentile of its own 44-quarter history (min 9.8, median 21.2, max 86.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 79.6 bn | 57.7 bn | 55.2 bn | 57.4 bn | 60.5 bn | 61.9 bn | 62.8 bn | 67.5 bn |
| Revenue YoY | +0.6% | −27.5% | −4.4% | +3.9% | +5.5% | +2.2% | +1.4% | +7.6% |
| Net income | 8.7 bn | 9.4 bn | 5.6 bn | 5.7 bn | 1.6 bn | 7.5 bn | 6.0 bn | 10.6 bn |
| Net income YoY | +51.7% | +8.1% | −40.7% | +2.7% | −71.5% | +357.7% | −19.7% | +75.9% |
| Diluted EPS | 9.52 | 10.56 | 6.23 | 6.35 | 1.80 | 8.14 | 6.43 | 11.17 |
| Diluted EPS YoY | +55.0% | +10.9% | −41.0% | +1.9% | −71.7% | +352.2% | −21.0% | +73.7% |
| net % | 11.0% | 16.3% | 10.1% | 10.0% | 2.7% | 12.1% | 9.6% | 15.7% |
| Free cash flow | 11.9 bn | 12.5 bn | 15.6 bn | 10.7 bn | 9.1 bn | 12.7 bn | 12.4 bn | 12.1 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 13.6 bn USD
- Financial debt
- 61.3 bn USD
- Net debt
- 47.7 bn USD
- Equity
- 32.7 bn USD
- Total assets
- 151.9 bn USD
- Debt / equity
- 1.87x
- Current ratio
- 0.96x
- ROE
- 35.2%
- ROA
- 7.3%
- FCF margin
- 17.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 55.2 bn | 57.4 bn | 60.5 bn | 61.9 bn | 62.8 bn | 67.5 bn | SEC (XBRL)· 24 Feb 2026verified |
| Cost of revenue | 24.3 bn | 25.9 bn | 27.8 bn | 27.6 bn | 27.2 bn | 28.2 bn | SEC (XBRL)· 24 Feb 2026verified |
| Gross profit | 30.9 bn | 31.5 bn | 32.7 bn | 34.3 bn | 35.6 bn | 39.3 bn | SEC (XBRL)· 24 Feb 2026verified |
| Research & development | 6.3 bn | 6.5 bn | 6.6 bn | 6.8 bn | 7.5 bn | 8.3 bn | SEC (XBRL)· 24 Feb 2026verified |
| SG&A | 20.6 bn | 18.7 bn | 18.6 bn | 19.0 bn | 19.7 bn | 20.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Interest expense | 1.3 bn | 1.2 bn | 1.2 bn | 1.6 bn | 1.7 bn | 1.9 bn | SEC (XBRL)· 24 Feb 2026verified |
| Pre-tax income | 2.6 bn | 4.8 bn | 1.2 bn | 8.7 bn | 5.8 bn | 10.3 bn | SEC (XBRL)· 24 Feb 2026verified |
| Income tax | -1.4 bn | 124.0 m | -626.0 m | 1.2 bn | -218.0 m | -242.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Net income | 5.6 bn | 5.7 bn | 1.6 bn | 7.5 bn | 6.0 bn | 10.6 bn | SEC (XBRL)· 24 Feb 2026verified |
| Diluted EPS | 6.23 | 6.35 | 1.80 | 8.14 | 6.43 | 11.17 | SEC (XBRL)· 24 Feb 2026verified |
| Weighted average diluted shares | 896.6 m | 904.6 m | 912.3 m | 922.1 m | 937.2 m | 948.7 m | SEC (XBRL)· 24 Feb 2026verified |
| Dividend per share | 6.51 | 6.55 | 6.59 | 6.63 | 6.67 | 6.71 | SEC (XBRL)· 24 Feb 2026verified |
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 13.2 bn | 6.7 bn | 7.9 bn | 13.1 bn | 13.9 bn | 13.6 bn | SEC (XBRL)· 24 Feb 2026verified |
| Receivables | 5.8 bn | 6.8 bn | 6.5 bn | 7.2 bn | 6.8 bn | 8.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Inventories | 1.8 bn | 1.6 bn | 1.6 bn | 1.2 bn | 1.3 bn | 1.2 bn | SEC (XBRL)· 24 Feb 2026verified |
| Current assets | 39.2 bn | 29.5 bn | 29.1 bn | 32.9 bn | 34.5 bn | 36.9 bn | SEC (XBRL)· 24 Feb 2026verified |
| Property, plant & equipment, net | 6.2 bn | 5.7 bn | 5.3 bn | — | — | — | SEC (XBRL)· 28 Feb 2023verified |
| Goodwill | 53.8 bn | 55.6 bn | 55.9 bn | 60.2 bn | 60.7 bn | 67.7 bn | SEC (XBRL)· 24 Feb 2026verified |
| Intangibles (excl. goodwill) | 13.7 bn | 12.5 bn | 11.2 bn | 11.0 bn | 10.7 bn | 11.4 bn | SEC (XBRL)· 24 Feb 2026verified |
| Total assets | 156.0 bn | 132.0 bn | 127.2 bn | 135.2 bn | 137.2 bn | 151.9 bn | SEC (XBRL)· 24 Feb 2026verified |
| Accounts payable | 4.0 bn | 4.0 bn | 4.1 bn | 4.1 bn | 4.0 bn | 4.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Short-term debt | 7.1 bn | 6.8 bn | 4.8 bn | 6.4 bn | 5.1 bn | 6.4 bn | SEC (XBRL)· 24 Feb 2026verified |
| Long-term debt | 54.2 bn | 44.9 bn | 46.2 bn | 50.1 bn | 49.9 bn | 54.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Current liabilities | 39.9 bn | 33.6 bn | 31.5 bn | 34.1 bn | 33.1 bn | 38.7 bn | SEC (XBRL)· 24 Feb 2026verified |
| Total liabilities | 135.2 bn | 113.0 bn | 105.2 bn | 112.6 bn | 109.8 bn | 119.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Equity | 20.7 bn | 19.0 bn | 22.0 bn | 22.6 bn | 27.4 bn | 32.7 bn | SEC (XBRL)· 24 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 18.2 bn | 12.8 bn | 10.4 bn | 13.9 bn | 13.4 bn | 13.2 bn | SEC (XBRL)· 24 Feb 2026verified |
| Capex | 2.6 bn | 2.1 bn | 1.3 bn | 1.2 bn | 1.0 bn | 1.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Free cash flow | 15.6 bn ≈ | 10.7 bn ≈ | 9.1 bn ≈ | 12.7 bn ≈ | 12.4 bn ≈ | 12.1 bn ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Investing cash flow | -3.0 bn | -6.0 bn | -4.2 bn | -7.1 bn | -4.9 bn | -10.3 bn | SEC (XBRL)· 24 Feb 2026verified |
| Financing cash flow | -9.7 bn | -13.4 bn | -5.0 bn | -1.8 bn | -7.1 bn | -3.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Dividends paid | 5.8 bn | 5.9 bn | 5.9 bn | 6.0 bn | 6.1 bn | 6.3 bn | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 50 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
03 Nov 2026Source: olivLaw, closing series
Market cap: 236.3 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation79
- Returns78
- Quality62
- Balance sheet3
- Growth15
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 88.91 – 625.92 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)191.74 – 348.31 (Mid 250.22)WACC 8.4% · starting FCFF 16.3 bn USD · terminal value share of EV 76%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 3.7%
- Peers: EV/Sales88.91 – 625.92 (Mid 410.63)8 companies used · median multiple 6.3x · quartiles 2.0x – 9.2xCSCO, DELL, FTNT, HPE, HPQ, NTAP, STX, WDC
- Peers: EV/EBITDAunavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 50/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 58.0% | 45 (on a fixed band) | 13% |
| EBIT margin · Quality | unavailable | unavailable | — |
| FCF margin · Quality | 21.0% | 84 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 3.7% | 15 (on a fixed band) | 20% |
| Revenue growth (YoY) · Growth | 7.6% | 17 (vs peers) | 10% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 0.9x | 3 (on a fixed band) | 8% |
| EV/Sales · Valuation | 4.2x | 63 (vs peers) | 20% |
| FCF yield · Valuation | 6.2% | 100 (on a fixed band) | 15% |
| Shareholder yield (distributions) · Returns | 2.7% | 78 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial3/100 · 1/2 factors with a value
- Growth15/100 · 2/2 factors with a value
- Quality62/100 · 2/3 factors with a value
- Returns78/100 · 1/1 factors with a value
- Valuation79/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
INTERNATIONAL BUSINESS MACHINES CORPORATION (IBM). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 67.5 bn USD in 2025; YoY growth 7.6%; net margin 16.0%; ROE 35.2%.
The estimated value range is 140.32–487.11 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 330.42 USD, the price of 250.04 USD leaves a potential of 32.1% (value / price − 1) and a margin of safety of 24.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 50/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF margin: 21.0%
- FCF yield: 6.2%
- Shareholder yield (distributions): 2.7%
What contradicts it
- Revenue CAGR 3Y: 3.7%
- Revenue growth (YoY): 7.6%
- Current ratio: 0.9x
Not assessed (insufficient data or a ratio without meaning): EBIT margin, Net debt / EBITDA.
Versus the vertical median
Industrial machinery and computer equipment (SIC 357x) · same industry group (3-digit SIC) · compared with 12 companies
Only companies with a capitalisation between 29.7 bn and 1,900.2 bn (within 8× of the company's); 42 of the vertical were left out.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CSCOCisco Systems, Inc. | 406.0 bn | 30.9 | 27.3% | 21.0% | +11.8% | +34% / +113% |
| PANWPalo Alto Networks, Inc. | 286.5 bn | 875.5 | 1.7% | 2.7% | +24.5% | +84% / +137% |
| DELLDell Technologies Inc. | 261.4 bn | 23.7 | — | 7.5% | +18.8% | +206% / +438% |
| IBMInternational Business Machines Corporation | 236.3 bn | 21.3 | 35.2% | 16.0% | +7.6% | −18% / +69% |
| ANETArista Networks, Inc. | 214.3 bn | 53.6 | 31.5% | 38.4% | +28.6% | +30% / +209% |
| SNDKSandisk Corporation | 160.3 bn | 9.1 | 141.2% | 67.0% | +175.3% | +405% / unavailable |
| STXSeagate Technology Holdings plc | 139.2 bn | 31.9 | 259.4% | 31.9% | +34.1% | +119% / +667% |
| WDCWestern Digital Corporation | 130.0 bn | 13.5 | 131.5% | 69.2% | +35.7% | +113% / +851% |
| FTNTFortinet, Inc. | 94.1 bn | 41.6 | 153.1% | 29.0% | +14.2% | +58% / +144% |
| HPEHewlett Packard Enterprise Company | 70.5 bn | 27.4 | 11.0% | 6.7% | +13.8% | +143% / +214% |
| PEverpure, Inc. | 39.2 bn | 161.8 | 17.7% | 5.9% | +15.6% | +32% / +253% |
| NTAPNetApp, Inc. | 37.5 bn | 26.9 | 114.8% | 21.8% | +5.6% | +71% / +109% |
| HPQHp Inc. | 25.5 bn | 10.8 | — | 4.1% | +3.2% | +16% / −4% |
1- and 3-year price returns: for IBM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 147.76 Total return -39% · Per year -39% | 261.32 Total return 7% · Per year 7% | 393.76 Total return 61% · Per year 61% |
| 3 years | 141.15 Total return -37% · Per year -14% | 281.11 Total return 21% · Per year 7% | 465.40 Total return 97% · Per year 25% |
| 5 years | 134.85 Total return -36% · Per year -9% | 302.40 Total return 36% · Per year 6% | 550.08 Total return 140% · Per year 19% |
- Exit P/E± 70.28
- Net margin± 49.19
- Annual revenue growth± 40.69
- Annual dilution± 4.13
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
IBM (International Business Machines Corporation) is a global technology company focused on hybrid cloud and artificial intelligence. In the third quarter of 2026 it reported revenue of 17.1 bn USD, up 4.7 percent as reported and 5.6 percent at constant currency 23. For full-year 2026 the company keeps guidance of 4-5 percent constant currency revenue growth and expects free cash flow to rise by more than 1 bn USD 3.
SWOT
Strengths
- The company has a broad base of enterprise clients, an integrated portfolio of software, consulting and infrastructure, and a widely recognised global research organisation 1.
- The Software segment carries high gross margins and solid growth, which supports group profitability 3.
- Free cash flow is strong, and the company has kept paying dividends without interruption for more than a century 3.
Weaknesses
- Consulting has a much lower gross margin than Software and was nearly flat in the third quarter of 2026 3.
- Total debt rose during the year, and significant acquisitions add integration and goodwill impairment risks 13.
- Quarterly financial results are hard to predict because of long sales cycles and the concentration of orders at quarter end 1.
Opportunities
Threats
- An economic slowdown or cuts in client budgets could reduce demand for the company's products and services 1.
- Intense competition from cloud providers, consultancies and hardware makers could pressure prices and margins 1.
- Tariffs, sanctions and export controls could disrupt supply chains and raise costs 1.
Risks
- Client demand and budgetshigh
If demand for the company's products falls due to economic conditions or changed buying patterns, revenue and profit could be affected 1.
- Innovation and investmenthigh
Investments in artificial intelligence and other emerging technologies carry uncertain results, and client adoption and economic models are not assured 1.
- Acquisitions and debtmedium
Integrating acquired businesses, goodwill impairments and higher debt levels could affect results and access to financing 13.
- International exposuremedium
Operations in over 175 countries expose the company to policy changes, currency swings and trade tensions 1.
- Supply chainmedium
Reliance on a single or a limited number of suppliers for critical components could disrupt deliveries 1.
Investment thesis
What would need to be true (bull case)
- Revenue growth accelerated in the third quarter of 2026 and free cash flow rose, which could support investment and dividends if the trend continues 23.
- A position in software and hybrid cloud, combined with demand for AI, could strengthen the company's long-term competitive advantage 13.
- Productivity programmes and cost control could keep improving operating margins if the third-quarter results hold 23.
What would break the thesis
- Consulting has been essentially flat and some segment gross margins are under pressure, which could limit profitability growth 23.
- High debt and a large acquisition programme could reduce financial flexibility if results weaken 13.
- Intense competition and dependence on client budget cycles could weigh on medium-term growth 1.
What to watch
- Delivery of the 4-5 percent constant currency revenue growth target2026 (annual report)
- Gross margin trend in the Consulting segmentQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Reporting segments are Software, Consulting, Infrastructure and Financing; in the third quarter of 2026 Software generated the largest share of revenue, at 7.8 bn USD 3. The company invested 11.4 bn USD in acquisitions during 2026 through September and funds these initiatives largely from operating cash flow 3. Active portfolio management through organic and inorganic moves is presented as central to the strategy 1.
In 2026 operating profitability was supported by productivity and expense control, while the GAAP gross margin edged down year over year 23. The board approved a quarterly dividend of 1.69 USD per share, and the company has paid consecutive quarterly dividends since 1916 3.
Segments
Infrastructure
Infrastructure delivered revenue of 3.7 bn USD in the third quarter of 2026, up 4 percent, driven by distributed infrastructure, while IBM Z declined 3.
Market context
The market spans global cloud and software vendors, consulting firms and server and storage manufacturers, with hundreds of competitors worldwide 1. Demand for artificial intelligence and hybrid cloud solutions is the main growth driver the company cites 13.
Revenue growth depends on client budgets and on how quickly clients adopt new business models in fast-growing segments, which remains uncertain 1. If client IT spending weakens or AI adoption slows, the growth pace could be affected 1.
Trends
- Artificial intelligence adoptiontailwind
Clients are deploying AI solutions that transform operating models, supporting demand for software and consulting 3. Results could still depend on how fast clients adopt these solutions across competitive segments 1.
- Hybrid cloudmixed
Hybrid cloud infrastructure and storage for mission-critical workloads is a growing area where the company differentiates on security and reliability 1. The decline at IBM Z shows that traditional segments can partly offset these gains 3.
- Client budgets and consultingheadwind
Client budgets and changes in buying patterns can reduce demand for services, and consulting was broadly flat in the third quarter 13. If this pressure persists, consulting revenue could stay weak.
- Trade and regulatory pressureheadwind
Tariffs, trade sanctions and export controls can raise costs and limit cross-border shipments, and AI and data rules add compliance work 1. The effect depends on how these rules evolve.
Competitive position
The company says it is a leader or among the leaders in each segment, yet it operates in a highly competitive environment ranging from large multinationals to small specialists 1. Main competitive factors include innovation, performance, price, quality, brand and the ability to deliver business value 1.
By segment, competitors include cloud and software providers, global consulting firms such as Accenture and Capgemini, and server and storage makers 1. Strategic partnerships with companies such as Microsoft, AWS and SAP coexist with competition in other areas 1.
- Alphabet (Google)GOOGL
Named as a competitor in software, particularly in cloud and artificial intelligence 1.
- MicrosoftMSFT
Competitor in software and cloud, and also a strategic partner in other areas 1.
- AccentureACN
Global consulting firm competing directly in consulting and transformation services 1.
- Dell TechnologiesDELL
Competitor in server and storage infrastructure, both on-premises and in hybrid cloud 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- International Business Machines ( NYSE : IBM ) Stock Price Down 2 . 1 % – Here WhySurge — GDELT DOC · 30 Sept 2026 · RO
The latest news item in our archive is from 30 Sept 2026; the newest SEC filing is from 22 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report22 Oct 2026
- Current report21 Oct 2026Results of operations · Financial statements and exhibits
- Current report01 Oct 2026Departure or appointment of officers · Amendments to articles or bylaws · Financial statements and exhibits
- Current report14 Aug 2026Financial statements and exhibits
- Quarterly report23 Jul 2026
- Current report22 Jul 2026Results of operations · Financial statements and exhibits
- Current report14 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report23 Jun 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report28 May 2026Regulation FD disclosure
- Current report01 May 2026Departure or appointment of officers · Amendments to articles or bylaws · Shareholder vote
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / IBM · 24 Feb 2026
- [2] Form 10-Q, quarter ended 2026-09-30 · SEC / IBM · 22 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / IBM · 21 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.