IBM
INTERNATIONAL BUSINESS MACHINES CORP
Next earnings Jul 22, 2026 (after close) · consensus $3.05 EPS, $18.0B rev
Last earnings -1.5% on 2026-04-22
$289.52
▲ +4.14%$289.52▲ +2.49%
over 1Y
L $214.64H $329.23
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+4.1%
1W+12.1%
1M-12.1%
3M+17.5%
YTD+0.6%
1Y+2.5%
Hold
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 28 analysts
Buy
Quality re-rating earned by FY25 earnings snap-back, but 23x P/E on a 7.6% grower leaves little margin for AI execution slip.
Revenue $67.5B · FY2025
The read
Middling fundamentals offset by an attractive price (~47% below fair value) — worth a look on the value angle.
IBM's FY2025 print is the strongest in a decade: revenue $67.5B (+7.6%), net income $10.6B (+75.9%), diluted EPS $11.17 (+73.7%), gross margin 58.2% and ROE 32.4%. The five-year revenue arc ($57.4B → $67.5B) shows the post-Kyndryl pivot to hybrid cloud/AI/software is finally compounding, and net income has tripled off the FY2022 trough. The 10-K explicitly frames the strategy around 'hybrid cloud, AI, quantum and other disruptive technologies' funded by an $8.32B R&D bill (+11.2%), and the cash engine still throws off $13.2B in operating cash flow — comfortably covering the $6.25B dividend and $1.09B capex.
The balance sheet is the asterisk. Long-term debt rose to $54.8B (+9.9%) and current debt jumped 26.2% to $6.42B against just $13.6B of cash (down 2.6%), while liabilities/equity sit at 3.65x and current liabilities ($38.7B) exceed current assets ($36.9B) — a negative working-capital posture. Management telegraphs more of the same, warning that acquisitions bring 'integration challenges, failure to achieve objectives, the assumption or retention of liabilities and higher debt levels.' Share count also crept up 1.2%, so per-share compounding is doing less work than headline net income suggests.
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 25, 2026, 10:01 PM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $57.4B | $60.5B | $61.9B | $62.8B | $67.5B |
| Gross profit | $31.5B | $32.7B | $34.3B | $35.6B | $39.3B |
| Operating income | — | — | — | — | — |
| Net income | $5.74B | $1.64B | $7.50B | $6.02B | $10.6B |
| Diluted EPS | $6.35 | $1.80 | $8.14 | $6.43 | $11.17 |
| Net margin | 10.0% | 2.7% | 12.1% | 9.6% | 15.7% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$320B
EV / EBITDA—
EV / Sales4.7
EV / FCF26.4
P / FCF22.5
PEG (trailing)0.34
Earnings yield3.9%
FCF yield4.4%
Quality & risk
ROIC (est.)—
Free cash flow$12.1B
Total debt$61.3B
Net cash-$47.7B
Piotroski F-Score6/9
Capital returns
Buyback yield0.5%
Dividend yield (est.)2.3%
Shareholder yield2.8%
Shares Δ YoY+1.2%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRecent disclosure tone has been improving.
- 8-K Material agreement2026-06-23
Entered material agreement & took on direct financial obligation (new debt issuance)
- 8-K Reg FD disclosure2026-05-28
Reg FD disclosure — investor/strategy update, no financial change
- 8-K Officer / director change2026-05-01
Annual meeting results: director vote, bylaw amendment, exec officer change
- 10-Q Quarterly report2026-04-23
Q1 2026 10-Q filed following FY25 record EPS $11.17 (+74%) and 7.6% revenue growth
- 8-K Earnings results2026-04-22
Q1 2026 earnings release furnished — results disclosed to investors
- DEF 14A Proxy statement2026-03-10
2026 proxy: exec comp, director slate for April 28 annual meeting
- 8-K Charter / bylaws change2026-03-03
Amended bylaws/charter — governance housekeeping, no operational impact
- 10-K Annual report2026-02-24
FY25: revenue $67.5B (+7.6%), net income $10.6B (+76%), controls effective
- 8-K Exhibits2026-02-02
Furnished exhibits only — minor administrative disclosure
Recent filings
all on EDGAR ↗4Period ending 2026-07-012026-07-02open ↗4Period ending 2026-06-302026-07-02open ↗4Period ending 2026-06-302026-07-02open ↗4Period ending 2026-06-302026-07-02open ↗4Period ending 2026-06-302026-07-02open ↗4Period ending 2026-06-302026-07-02open ↗4Period ending 2026-06-302026-07-02open ↗4Period ending 2026-06-302026-07-02open ↗4Period ending 2026-06-302026-07-02open ↗4Period ending 2026-06-302026-07-02open ↗4Period ending 2026-06-302026-07-02open ↗4Period ending 2026-06-302026-07-02open ↗
Frequently asked
- Is INTERNATIONAL BUSINESS MACHINES CORP (IBM) a buy?
- IBM currently carries a Hold rating with 4/5 conviction, derived from its latest SEC filings. Quality re-rating earned by FY25 earnings snap-back, but 23x P/E on a 7.6% grower leaves little margin for AI execution slip.
- What is IBM's fair value?
- A Modified-Graham model based on IBM's SEC fundamentals estimates a fair value of about $424.46. It is an estimate from reported earnings, not a price target.
- Is IBM overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, IBM currently appears undervalued relative to its SEC-grounded earnings power.
- What is INTERNATIONAL BUSINESS MACHINES CORP's quality score?
- IBM scores 73.37458110481681/100 (grade B) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0000051143, latest 10-Q filed 2026-04-23) · EODHD · Proprietary analysis · as of 6/26/2026, 2:01:37 AM.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.