Reading the tape
NYSE: IBM
International Business Machines Corporation
Technology · Information Technology Services
Market Cap
$218.24B
52w High
$324.90
52w Low
$220.72
P/E
20.26
Volume
3.47M
Outstanding Shares
939.89M
Price vs Fundamentals
Why The Stock Is Moving
Mixed / unclearLow confidence
1Y Price: -3.11%Revenue (TTM): 9.68%FCF (TTM): 9.61%P/FCF: 80th pct
What changed
The stock fell 3.11% over the last year. Revenue grew 9.68% over the trailing twelve months. Operating margin moved from 16.36% to 16.36%. Free cash flow grew 9.61% over the trailing twelve months.
What the market seems to be pricing
The stock has moved lower against modestly improving underlying metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.
What would invalidate this read
Operating margin currently stands at 16.36%. A decisive move in revenue — currently up 9.68% — would be the clearest signal to resolve the ambiguity.
Company profile
International Business Machines Corporation provides integrated solutions and services worldwide.
CEOArvind Krishna
SectorTechnology
IndustryInformation Technology Services
Employees270,300
IPO dateSep 24, 1915
Valuation
Forward P/E—
EV/EBITDA19.07
Enterprise value$329.67B
Stock splits
Nov 4, 2021↑ Forward
Every 500 shares became 523
May 27, 1999↑ Forward
Every 1 shares became 2
May 28, 1997↑ Forward
Every 1 shares became 2
Jun 1, 1979↑ Forward
Every 1 shares became 4
May 29, 1973↑ Forward
Every 4 shares became 5
Apr 23, 1968↑ Forward
Every 1 shares became 2
May 18, 1966↑ Forward
Every 2 shares became 3
May 18, 1964↑ Forward
Every 4 shares became 5
Profitability & growth
Revenue growth9.46%
Gross margin58.97%▲5.03%vs FY2024
Operating margin16.36%▼4.77%vs FY2024
ROE32.45%▲47.10%vs FY2024
Analyst consensus
RatingHold
Target price$309.64▲33.35%
22
Buy
24
Hold
4
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 22, 2026
Q3 FY26 · EPS est $2.98 · Revenue est $17.81B
View
Dividends
$6.73/shareQuarterlyDividend Aristocrat · 32yrEx-div May 8, 2026 · in 5dSafeIBM pays a dividend with a 2.9% declared yield, 32 consecutive years of growth, growing at 1.51% annually, covered 1.9× by free cash flow.
Declared Yield
2.9%
Annual Div / Share
$6.73
5yr CAGR
+1.51%
Doubles every ~46.1yr
Payout Ratio
58.42%
Safe
Dividend Growth Rate
3yr CAGR
+0.6%
5yr CAGR
+1.51%
10yr CAGR
+2.88%
Dividend Safety
8/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$6.73+0.6%
2025$6.69+0.6%
2024$6.65+0.6%
2023$6.61+1.7%
2022$6.50+4.1%
2021$6.24+0.6%
2020$6.20+2.5%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$29/yr
$2/mo
In 5 yrs
$31/yr+8%
$3/mo
In 10 yrs
$34/yr+16%
$3/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$29/yr $2/mo | $31/yr+8% $3/mo | $34/yr+16% $3/mo |
Yield-on-cost grows from 2.9% → 3.37% over 10yr
Analysis
Dividend Strengths
Dividend Aristocrat
IBM has raised its dividend for 32 consecutive years — qualifying as a Dividend Aristocrat, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 1.9× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Risks to Watch
No strong risk signal stands out from the latest period pair.
Congressional Activity
Congress Trades in IBM
STOCK Act disclosures from senators and representatives.
Lloyd Doggett
TXhouseDemocratPurchase2026-03-10$1,001 - $15,000+29d to disclose
Michael McCaul
TXhouseRepublicanPurchaseSpouse2026-03-04$15,001 - $50,000+37d to disclose
Julia Letlow
LAhouseRepublicanPurchase2026-02-02$1,001 - $15,000+39d to disclose