INTERNATIONAL BUSINESS MACHINES CORP (IBM) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does INTERNATIONAL BUSINESS MACHINES CORP Do?
International Business Machines Corporation provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and software solutions, such as Red Hat, an enterprise open-source solutions; software for business automation, AIOps and management, integration, and application servers; data and artificial intelligence solutions; and security software and services for threat, data, and identity. This segment also provides transaction processing software that supports clients' mission-critical and on-premise workloads in banking, airlines, and retail industries. The Consulting segment offers business transformation services, including strategy, business process design and operations, data and analytics, and system integration services; technology consulting services; and application and cloud platform services. The Infrastructure segment provides on-premises and cloud-based server and storage solutions for its clients' mission-critical and regulated workloads; and support services and solutions for hybrid cloud infrastructure, as well as remanufacturing and remarketing services for used equipment. The Financing segment offers lease, installment payment, loan financing, and short-term working capital financing services. 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 CORP (IBM) is classified as a mega-cap stock in the Technology sector, specifically within the Computer Hardware industry. The company is led by CEO Arvind Krishna and employs approximately 311,300 people, headquartered in Armonk, New York. With a market capitalization of $228.2B, IBM is one of the largest companies in the Technology sector.
INTERNATIONAL BUSINESS MACHINES CORP (IBM) Stock Rating — Reduce (April 2026)
As of April 2026, INTERNATIONAL BUSINESS MACHINES CORP receives a Reduce rating with a composite score of 44.8/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.IBM ranks #2,311 out of 4,446 stocks in our coverage universe. Within the Technology sector, INTERNATIONAL BUSINESS MACHINES CORP ranks #249 of 584 stocks, placing it in the upper half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
IBM Stock Price and 52-Week Range
INTERNATIONAL BUSINESS MACHINES CORP (IBM) currently trades at $231.21. The stock lost $5.97 (2.5%) in the most recent trading session. The 52-week high for IBM is $324.90, which means the stock is currently trading -28.8% from its annual peak. The 52-week low is $214.50, putting the stock 7.8% above its annual trough. Recent trading volume was 5.9M shares, reflecting moderate market activity.
Is IBM Overvalued or Undervalued? — Valuation Analysis
INTERNATIONAL BUSINESS MACHINES CORP (IBM) carries a value factor score of 59/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 49.32x, compared to the Technology sector average of 45.27x — a premium of 9%. The price-to-book ratio stands at 7.02x, versus the sector average of 3.16x. The price-to-sales ratio is 3.66x, compared to 1.06x for the average Technology stock. On an enterprise value basis, IBM trades at 32.13x EV/EBITDA, versus 12.79x for the sector.
Overall, IBM's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
INTERNATIONAL BUSINESS MACHINES CORP Profitability — ROE, Margins, and Quality Score
INTERNATIONAL BUSINESS MACHINES CORP (IBM) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 14.2%, compared to the Technology sector average of -1.4%, which is within a healthy range. Return on assets (ROA) comes in at 3.1% versus the sector average of -1.0%.
On a margin basis, INTERNATIONAL BUSINESS MACHINES CORP reports gross margins of 56.9%, compared to 50.9% for the sector. The operating margin is 8.9% (sector: -0.5%). Net profit margin stands at 7.2%, versus -1.5% for the average Technology stock. Revenue growth is running at 3.6% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
IBM Debt, Balance Sheet, and Financial Health
INTERNATIONAL BUSINESS MACHINES CORP has a debt-to-equity ratio of 364.0%, compared to the Technology sector average of 43.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.96x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $63.12B. Cash and equivalents stand at $11.57B.
IBM has a beta of 0.81, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for INTERNATIONAL BUSINESS MACHINES CORP is 71/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
INTERNATIONAL BUSINESS MACHINES CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, INTERNATIONAL BUSINESS MACHINES CORP reported revenue of $62.82B and earnings per share (EPS) of $11.36. Net income for the quarter was $4.66B. Gross margin was 56.9%. Operating income came in at $5.88B.
In FY 2025, INTERNATIONAL BUSINESS MACHINES CORP reported revenue of $67.53B and earnings per share (EPS) of $11.36. Net income for the quarter was $10.59B. Gross margin was 58.2%. Revenue grew 7.6% year-over-year compared to FY 2024. Operating income came in at $10.33B.
In Q3 2025, INTERNATIONAL BUSINESS MACHINES CORP reported revenue of $16.33B and earnings per share (EPS) of $1.87. Net income for the quarter was $1.74B. Gross margin was 57.3%. Revenue grew 9.1% year-over-year compared to Q3 2024. Operating income came in at $2.92B.
In Q2 2025, INTERNATIONAL BUSINESS MACHINES CORP reported revenue of $16.98B and earnings per share (EPS) of $2.36. Net income for the quarter was $2.19B. Gross margin was 58.8%. Revenue grew 7.7% year-over-year compared to Q2 2024. Operating income came in at $2.60B.
Over the past 8 quarters, INTERNATIONAL BUSINESS MACHINES CORP has demonstrated a growth trajectory, with revenue expanding from $15.77B to $62.82B. Investors analyzing IBM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
IBM Dividend Yield and Income Analysis
INTERNATIONAL BUSINESS MACHINES CORP (IBM) currently pays a dividend yield of 2.4%. At this yield, a $10,000 investment in IBM stock would generate approximately $$239.00 in annual dividend income. The net margin of 7.2% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
IBM Momentum and Technical Analysis Profile
INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a momentum factor score of 36/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 17/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
IBM vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, INTERNATIONAL BUSINESS MACHINES CORP (IBM) ranks #249 out of 584 stocks based on the Blank Capital composite score. This places IBM in the upper half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing IBM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full IBM vs S&P 500 (SPY) comparison to assess how INTERNATIONAL BUSINESS MACHINES CORP stacks up against the broader market across all factor dimensions.
IBM Next Earnings Date
No upcoming earnings date has been announced for INTERNATIONAL BUSINESS MACHINES CORP (IBM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy IBM? — Investment Thesis Summary
The quantitative profile for INTERNATIONAL BUSINESS MACHINES CORP suggests caution. Momentum is weak at 36/100, a headwind for near-term performance. Low volatility (stability score 71/100) reduces downside risk.
In summary, INTERNATIONAL BUSINESS MACHINES CORP (IBM) earns a Reduce rating with a composite score of 44.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on IBM stock.
Related Resources for IBM Investors
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