IBM
International Business Machines Corporation

International Business Machines CorporationIBM

Technology · Information Technology Services
245.00USD
-0.85%
Nov 08, 2026
IBM overview ready
Full-stack enterprise AI and hybrid-cloud enabler for global organizations
IBM is a full-stack enterprise AI and hybrid-cloud enabler: it sells Red Hat hybrid-cloud software, watsonx data and AI software, automation and transaction-processing platforms, infrastructure for mission-critical workloads, and consulting implementation services.
Theme not measured
Enterprise Platforms (Mega-Cap) has no leadership state this session.
Constructive pullback in an uptrend
Longer-term context reads established trend, with a near-term setup of failed reclaim.
Fair valuation
The price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
High net debt burden.
Market Nov 6Filing Sep 30Price action Nov 7Research Oct 20

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction8.9BusinessPerformance7.0BusinessQuality7.5Valuation4.8ThemeMomentum—Improving — Revenue is growing at a steady pace (+4.7% year over year). Diluted EPS growth has strengthened to +25% year over year ($2.30), up from -1.7%. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
Enterprise Platforms (Mega-Cap) — Enterprise Platforms (Mega-Cap) is tracked (3–4 priced members) — too few for a leadership state
Its economic family, Software, reads Weakening (+6.0pp vs SPY) — the family’s reading, not this theme’s.
Price
Loading price history…

Price Action

Constructive pullback in an uptrend
Longer-term context reads established trend, with a near-term setup of failed reclaim.
EntryReset + recovery

The stock remains extended from its long-term weekly base, but the recent reset toward the daily SMA200 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$231.6B
Avg Volume (60D)
5.6M
60 sessions
Revenue Growth YoY
+7.6%
FY2025 vs FY2024
Gross Margin
+58.0%
Trailing twelve months
Operating Margin
+21.0%
Trailing twelve months
Free Cash Flow Yield
+6.3%
Distance from 200DMA
-0.4%
Next Earnings
2027-01-27
P/E
20.7x
EV / Sales
4.1x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Improving

Revenue is growing at a steady pace (+4.7% year over year). Diluted EPS growth has strengthened to +25% year over year ($2.30), up from -1.7%.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthGrowing
+4.7%
$17.1B in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +12%
  2. +9.5%
  3. +1.1%
  4. +4.7%
Earnings growthAccelerating
+25%
Diluted EPS $2.30 vs $1.84 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. +14%
  3. -1.7%
  4. +25%
Gross marginStable
56.8%
-0.5 pp YoY

Business Quality

7.5 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

All three valuation perspectives agree this company is fair.
International Business Machines Corporation has a Fair valuation stance because the price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.

Company Research

Thesis
IBM is a full-stack enterprise AI and hybrid-cloud enabler: it sells Red Hat hybrid-cloud software, watsonx data and AI software, automation and transaction-processing platforms, infrastructure for mission-critical workloads, and consulting implementation services.
Opportunity
Moderate opportunity
Enterprise technology budgets for deploying AI applications and agents into governed production environments across on-premises systems, private cloud and public clouds, with application modernization, data integration, automation and operational controls required to make adoption usable at scale.
Key risk
High net debt burden.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Information Technology Services
What they do

IBM provides integrated technology solutions and services globally through its Software, Consulting, Infrastructure, and Financing segments, focusing on hybrid cloud and AI platforms to support enterprise digital transformation.

How it earns

Revenue is generated through a mix of subscription-based software licenses, consulting and professional services fees, infrastructure sales, and financing arrangements.

Products & services
Red Hat hybrid-cloud software
Watsonx AI and data platforms
Automation and transaction-processing platforms
Technology consulting services
Infrastructure for mission-critical workloads
Customers & end markets
Large enterprises
Government agencies
Global organizations across Americas, EMEA, and Asia Pacific
Market position

Leader in enterprise AI and hybrid cloud solutions with a broad full-stack offering and global consulting capabilities.

Demand drivers
Medium cyclicality

Demand is influenced by enterprise IT budgets and economic cycles affecting technology investment.