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US stock · figures in US dollars · scored on full-year results

IBM International Business Machines Corporation Common Stock

IBM · Technology · Information Technology Services
Bottom 37% of scored stocks
OkayBottom 37% of scored stocks
Weak Spot

IBM scores 48/100 on fundamentals: in the bottom 37% of 503 scored S&P 500 stocks. Its strongest area is Business Strength (90/100); its weakest is Price Fairness (17/100). It carries 1 warning flag: Weak Spot.

Best
Business 90
Weakest
Price 17
  • Carries a Weak Spot flag

A financially stretched, expensively priced stock, but price fairness needs attention.

What looks good
What to watch
Mkt capUS$ 243.6b#49 of 503 in the S&P 500EPSUS$ 11.72P/E21.8×✓ vs sector median 31.8×P/B6.9×✓ vs sector median 7.4×Div yield3%✓ Top 24% in the S&P 50052w range · 44% of range199.19332.46
as of 31 Oct 2026

Nearby peers

Ranks #65 of 86 in Technology by score

#1First Solar87#63Workday50#64ServiceNow49
#65IBM48
#66Block47#67CrowdStrike46

One-Minute Summary

Why IBM scores 48

A financially stretched, expensively priced stock, but price fairness needs attention.

What looks good
What to watch

Business Strength

90
Why 90?
Pillar score: (2 + 1 + 2 + 2 + 2) = 9 of 10 points → 90
Return on Equity (ROE)31%Strong4-Year Revenue Growth+4%/yrOkay4-Year Profit Growth+14%/yrStrongNet Profit Margin16%StrongQuarterly Momentum+8%Strong
Show 3 charts

Net Profit & Equity, with ROE

Net Profit ↑ +48.9%Equity ↑ +57.7%ROE % 31.4%
Net ProfitEquityROE %
7.5b6.0b10.6b11.2b22.5b27.3b32.6b35.5b202320242025TTM33.3%22.1%32.4%31.4%

Revenue & Net Profit, with Net Margin

Revenue ↑ +12.9%Net Profit ↑ +48.9%Net Margin % 16%
RevenueNet ProfitNet Margin %
61.9b62.8b67.5b69.9b7.5b6.0b10.6b11.2b202320242025TTM12.1%9.6%15.7%16%

Sales grew about 12.9% over 4 years: customers keep spending more with this company.

Profit climbed about 48.9% over 4 years: the business keeps more money as it grows.

Recent Quarters: Revenue & Net Profit (the last 8 quarters, scored)

Revenue ↑ +14.7%Net Profit ↑ +756.1%Net Margin % 12.6%
RevenueNet ProfitNet Margin %
15.0b17.6b14.5b17.0b16.3b19.7b15.9b17.2b-330m2.9b1.1b2.2b1.7b5.6b1.2b2.2bQ3'24Q4'24Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26-2.2%16.6%7.3%12.9%10.7%28.4%7.6%12.6%
▼▼▼▲▲▲▲▬

Sales grew about 14.7% over the last 8 quarters: customers keep spending more with this company.

The company made a loss in at least one of the last 8 quarters: the bars below zero are losses, not profits.

Why 33?
Pillar score: (0 + 0 + 2) = 2 of 6 points → 33
Debt-to-Equity1.9×WeakCurrent Ratio0.9×WeakInterest Coverage6.5×Strong
Show 2 charts

Debt vs Equity, with D/E ratio

Total Debt ↑ +12%Equity ↑ +57.7%D/E 1.9×
Total DebtEquityD/E
59.9b58.4b64.6b67.1b22.5b27.3b32.6b35.5b202320242025TTM2.7×2.1×2×1.9×

Borrowings have stayed roughly level: manageable, as long as profits stay healthy.

Short-term assets vs bills, with Current Ratio

Current Assets ↓ -5.2%Current Liabilities ↑ +6.9%Current Ratio 0.9×
Current AssetsCurrent LiabilitiesCurrent Ratio
32.9b34.5b36.9b31.2b34.1b33.1b38.7b36.5b202320242025TTM1×1×1×0.9×
Why 63?
Pillar score: (0 + 2 + 2 + 1) = 5 of 8 points → 63
Dividend Quality3%Weak
Payout ratio: 57%
Operating Cash FlowPositive & growingStrongFree Cash FlowPositive & growingStrongCash & Cash EquivalentsPartly healthyOkay
Show 3 charts

Operating vs Free Cash Flow

Operating CF ↑ +13.6%Free CF ↑ +15.7%
Operating CFFree CF
13.9b13.4b13.2b15.8b12.1b11.8b11.5b14.0b202320242025TTM

The business generates real cash, and more of it each year: a very healthy sign.

Cash vs Total Debt

Cash ↓ -29.3%Short-Term Debt ↑ +9.1%Total Debt ↑ +12%
CashShort-Term DebtTotal Debt
13.1b13.9b13.6b9.2b6.4b5.1b6.4b7.0b59.9b58.4b64.6b67.1b202320242025TTM

Dividends per Share, with Yield

DPS (cents) → +1.8%Yield % 2.6%
DPS (cents)Yield %
16416516516516616716716816816865966366767120222023202420255.7%5.3%3.6%2.6%

Dividends per share have been maintained or raised: management shares the rewards with you.

Why 17?
Pillar score: (0 + 0 + 1) = 1 of 6 points → 17
P/E Ratio21.8×WeakP/B Ratio6.9×WeakPEG Ratio1.5Okay
Show chart

Share Price: Weekly Closes (not part of the score)

US$ 303.07US$ 257.11US$ 211.16Oct '25Feb '26Jun '26Oct '26

The share price is down about 14% over the past year.

Why 42?
Pillar score: (2 + 0 + 2 + 0 + 1 + 0) = 5 of 12 points → 42
Earnings ConsistencySteadyStrongDebt Trend (4yr)RisingWeakShare Count Trend (4yr)+1%/yrStrongInventory vs Sales (4yr)+14.6 pp/yr vs salesWeakAsset Turnover Trend (4yr)-1.5%OkayQuarterly ConsistencyLoss in 1 of 8 quartersWeak
Show chart

Revenue vs Inventory, with Inventory % of Revenue

Revenue ↑ +12.9%Inventory ↑ +67.5%Inv. % of Rev. 2.8%
RevenueInventoryInv. % of Rev.
61.9b62.8b67.5b69.9b1.2b1.3b1.2b1.9b202320242025TTM1.9%2.1%1.8%2.8%
Ranks #65 of 86 in Technology by score

Sector peers

#1First Solar87#63Workday50#64ServiceNow49
#65IBM (you)48
#66Block47#67CrowdStrike46

Full Financial History

Every reported figure behind the score, year by year. Download it, or check it against the company's own annual report.

Financial YearRevenueNet ProfitOperating Cash FlowFree Cash FlowCapExCashTotal DebtShort-Term DebtEquityCurrent AssetsCurrent LiabilitiesTotal AssetsTotal LiabilitiesInventoryDividendsReturn on Equity (ROE)Net Profit MarginDebt-to-EquityCurrent RatioInterest CoverageDividend Payout RatioDiv yieldP/E RatioP/B RatioPEG Ratio
2026US$ 69.9bUS$ 11.2bUS$ 15.8bUS$ 14.0bUS$ -1.8bUS$ 9.2bUS$ 67.1bUS$ 7.0bUS$ 35.5bUS$ 31.2bUS$ 36.5bUS$ 155.0bUS$ 118.8bUS$ 1.9b-31%16%1.9×0.9×6.5×57%----
2025US$ 67.5bUS$ 10.6bUS$ 13.2bUS$ 11.5bUS$ -1.7bUS$ 13.6bUS$ 64.6bUS$ 6.4bUS$ 32.6bUS$ 36.9bUS$ 38.7bUS$ 151.9bUS$ 119.1bUS$ 1.2bUS$ 671.0m32%16%2.0×1.0×6.3×59%2%25.3×8.2×0.3
2024US$ 62.8bUS$ 6.0bUS$ 13.4bUS$ 11.8bUS$ -1.7bUS$ 13.9bUS$ 58.4bUS$ 5.1bUS$ 27.3bUS$ 34.5bUS$ 33.1bUS$ 137.2bUS$ 109.8bUS$ 1.3bUS$ 667.0m22%10%2.1×1.0×4.4×102%3%32.7×7.2×20.4
2023US$ 61.9bUS$ 7.5bUS$ 13.9bUS$ 12.1bUS$ -1.8bUS$ 13.1bUS$ 59.9bUS$ 6.4bUS$ 22.5bUS$ 32.9bUS$ 34.1bUS$ 135.2bUS$ 112.6bUS$ 1.2bUS$ 663.0m33%12%2.7×1.0×6.4×81%4%18.4×6.1×1.8