International Business Machines Corporation

How has the stock done?

Change in closing price from the first day shown, or with Price the closing price itself. Prices: Yahoo Finance, to Nov 12, 2026. Dashed lines: the days the company released earnings (its SEC 8-K filings); EPS estimates: Yahoo Finance. The stock's move after a release runs from the last close before its day to the close the day after (or five days after), so a release before the open counts like one after the close.

Is the business growing?

In the fiscal year to Dec 2025, Sales was 53% and Services was 45% of revenue; Sales rose from 50% in the fiscal year to Dec 2023.

In the fiscal year to Dec 2025, Americas was 49% and Europe/Middle East/Africa was 33% of revenue; Europe/Middle East/Africa rose from 30% in the fiscal year to Dec 2023.

Quarters: International Business Machines Corporation's SEC filings, named by the month they end. Fiscal years: International Business Machines Corporation's annual reports to the SEC.

How it makes money

Of every $100 in revenue, $15.7 ends up as net income. Net margin rose from 2.7% to 15.7% over the past 3 years.

Each margin is that line of the income statement divided by revenue. Fiscal year: International Business Machines Corporation's annual reports to the SEC.

Customers and suppliers

In its latest annual report International Business Machines sells to Palo Alto Networks; it names no suppliers.

Suppliers

Celestica CLS

 

IBMInternational Business Machines

Customers

Palo Alto Networks PANW

Penguin Solutions PENG

Xanadu Quantum Technologies XNDU

Partners

Adobe ADBEStrategic partnership delivering client solutionsAmazon AMZNStrategic partnership delivering client solutionsMicrosoft MSFTStrategic partnership delivering client solutionsOracle ORCLStrategic partnership delivering client solutionsSalesforce CRMStrategic partnership delivering client solutions

Samsung 005930.KSStrategic partnership delivering client solutions

SAP SAPStrategic partnership delivering client solutions

ServiceNow NOWMakes technology complementary to client ITNVIDIA NVDAExpands client choice and speed using AI

Anthropic ANTExpands client choice and speed using AI

GroqExpands client choice and speed using AI

AMD AMDExpands client choice and speed using AI

Changes since the previous annual report (10-K filed Feb 25, 2025)

AMD AMDNamed for the first time, as a partner

Anthropic ANTNamed for the first time, as a partner

GroqNamed for the first time, as a partner

NVIDIA NVDANamed for the first time, as a partner

BBrookfield Annuity CompanyNo longer named (was a supplier)

RRBC Life Insurance CompanyNo longer named (was a supplier)

Palo Alto Networks PANWNo longer a partner, still a customer

Named in other companies’ filings

Everpure Pcalls it a partner · Cloud technology ecosystemMongoDB MDBcalls it a partner · Software and systems integration partnershipUMC UMClicensing deal with it · Patent cross-licensing

Only the companies International Business Machines names in its 10-K filed Feb 24, 2026 (SEC). Named in other companies' filings: those whose own latest annual report or an 8-K since names International Business Machines. The supply chain joins the latest annual reports of the companies on it and the 8-Ks they filed since: a link shows when either side's report names the other, so it grows as more reports are read. Hover a name for the filing's own words.

Is it expensive?

P/E of 20.9x, in line with the peer median of 19.3x, with earnings still growing.

In line with the peer median of 19.3x (excludes 1 unprofitable peer).

At 20.9× trailing earnings IBM is below most of its five-year range; the five-year median is 24.7×.

Closing price over diluted earnings per share of the last four reported quarters, as known on each day (a quarter counts 35 days after it ends). From SEC filings; earnings per share adjusted for splits.

What analysts expect

The average analyst price target is $259, 6% above the current price; 48% of 25 analysts rate it a buy; earnings beat estimates in 3 of the last 4 quarters.

Buy or Strong Buy: 12 analysts (48%). Sell or Strong Sell: 2.

Over the past year the average of the analysts' latest price targets went from $289.27 to $270.06 (−7%), while IBM went from $304.86 to $244.67 (−20%). In the past three months targets were raised 12 times and never cut. 4 upgrades and 1 downgrade over the year; the latest: HSBC moved it to Reduce from Hold on Jul 14, 2026.

The day after each of these reports the stock moved +5.2% (Dec 2025, beat); −9.6% (Mar 2026, beat); −1.8% (Jun 2026, in line); +4.2% (Sep 2026, beat).

For the quarter ending Dec 2026 (International Business Machines reports on Jan 27, 2027), analysts expect adjusted earnings of $4.63 a share, 2% more than the $4.52 of a year earlier, and revenue of $20.4B, up 4% on a year earlier. For the fiscal year ending Dec 2027, they expect adjusted earnings of $13.23 a share, 7% more than the year before's estimate of $12.42, and revenue of $73.2B, up 4% on the year before's estimate.

Targets, ratings and earnings estimates: Yahoo Finance. Rating and target changes: Yahoo Finance's list of upgrades and downgrades. The average target on each day is the average of every listed firm's latest target set in the 180 days before it, so it counts fewer analysts than the average target above, and the band is the middle half of those targets (a quarter of the firms are above it, a quarter below); a target set before a stock split is divided by the split. Expected figures: the average of the analysts' estimates (Yahoo Finance). Their EPS is adjusted, as analysts estimate it, so it is set against the adjusted EPS Yahoo reports for the same quarters, not the GAAP EPS of the growth and valuation sections; revenue against the SEC filings. No change is given against a quarter whose reported EPS was more than 50% off its own estimate (often a one-off gain or charge), nor against a year that counts one. Each estimate is pinned to its fiscal period by the report date or the period's end, and one that cannot be is left out.

Where the cash goes

Generated $14.7B in free cash flow over the year, of which $6.4B went back to shareholders (dividends plus buybacks), leaving $8.3B in the company.

International Business Machines had 954M diluted shares in the quarter ended Sep 2026, 0.5% more than a year earlier, and 1.1% more each year on average since Mar 2022. Over the last four quarters its earnings per share rose 40.1% and its net income rose 41.3%: more shares took about 1 point off.

Free cash flow: operating cash flow minus capital spending on property, plant and equipment, from SEC filings, for the last 4 quarters and by quarter. Shares: each quarter's diluted weighted average as filed with the SEC, since the stock's listing and its latest split.

Financial health

Current ratio 1.0, short-term debt coverage is tight; debt-to-equity 1.9, debt is high, which adds pressure if the economy weakens.

Latest fiscal year balance sheet. Source: Yahoo Finance.

What did the funds Hunch tracks do?

Of the 83 funds whose 13F filings Hunch reads, 10 held IBM at the end of their latest quarter (for most, Q2 2026). Over that quarter 7 added shares, 2 cut, 1 bought new and 1 sold all. The largest of them is Norges Bank, 8.42M shares worth $2.4B at Jun 30, 2026, 1.9% more than at Dec 31, 2025.

From the 13F filings of the 83 funds Hunch tracks, not of every institution: each fund's shares of IBM at its latest quarter end against the quarter before, as filed (long positions only, options left out), the quarter before put on the latest quarter's share count across a split. A fund files 45 days after its quarter ends, so some have a newer quarter than others. Value is at the quarter end. Norges Bank filed its 13F for Q1 2026 confidentially, with no holdings made public, so its row compares Q2 2026 with Q4 2025.

Are insiders buying or selling?

Officers and directors bought $417K and sold $5.8M of IBM on the open market in the 12 months to Nov 12, 2026. The largest was Robert David Thomas (Senior Vice President), who sold $5.8M in 1 sale.

From the Form 4s filed with the SEC about International Business Machines Corporation (88 in the 12 months): purchases (code P) and sales (code S) on the open market by its officers and directors, at the price each filing gives (often an average of the day's trades). A sale is a 10b5-1 sale when its filing says it was made under such a plan, set up in advance. Not counted: 70 other transactions (grants, option exercises, shares withheld for tax and gifts).

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