International Business Machines CorporationIBM
NYSE•Technology•Information Technology Services
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions. The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. Its Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services. It has strategic partnerships with various companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors that include Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. Additionally, the company operate a data streaming platform. The company has a strategic collaboration with Arm Holdings plc for the development of new dual-architecture hardware that helps enterprises run future AI and data intensive workloads. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
International Business Machines (IBM) reported trailing twelve months revenue of $68.91B as of March 2026, a 9.7% increase year-over-year. Quarterly revenue reached $15.92B, reflecting continued top-line momentum.
International Business Machines generated $10.75B in TTM net income, with quarterly EBITDA of $1.36B. The operating margin expanded from 7.8% to 8.5%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (8.5%) and net margin (7.6%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 7.3% a year ago, signaling stronger bottom-line efficiency.
IBM trades at a P/E of 20.7x (in line with broad market averages) and a P/S of 3.2x. The price-to-book ratio of 6.8x indicates a significant premium over book value.
The company generated $4.94B in free cash flow over the trailing twelve months, a 19.7% increase year-over-year, indicating cash generation ability. The balance sheet shows $156.23B in total assets with $57.71B in long-term debt against $32.97B in stockholders equity for a debt-to-equity ratio of 1.8. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging 11.3%. The business may lack pricing power or face rising costs.'
Consistently high ROE averaging 27.3% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~10.5% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 1.8 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation