Is International Business Machines (IBM) overvalued or fairly valued?

MarketChacha shows International Business Machines's valuation in context — a trailing P/E of about 30.6, a forward P/E of about 17.9, a price-to-book of about 6.4 — alongside its revenue and profit growth and whether reported profit converts into operating cash, so you can judge value for yourself. MarketChacha does not issue ratings, price targets, or buy/sell advice.

Does International Business Machines's reported profit turn into cash?

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash. MarketChacha computes this cash-conversion check (1.68×) from reported figures — education, not a rating.

What is International Business Machines's revenue?

International Business Machines reported revenue of $67.5B for FY2025, with net profit of $10.6B, per official filings.

What is the share price of International Business Machines (IBM)?

International Business Machines last traded at $235.65 (+0.4% on the day), as of 9/4/2026 — a delayed quote shown for education, not investment advice.

International Business Machines

IBM · NYSE · IT Services · United States

Snapshot

TickerIBM

ExchangeNYSE

SectorIT Services

IndustryInformation Technology Services

CountryUnited States

Employees264,300

HeadquartersArmonk, United States

Websitewww.ibm.com

Filings tracked16

About International Business Machines

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. The Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services. It operates a data streaming platform. The company 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. It also 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; strategic partnership with three.ws to advance ai-powered 3d agent technology; and collaboration with Lightwell to help strengthen open source software supply chain. Additionally, it offers operational resilience, logistics, and future-ready technology to the UK Ministry of Defence through Team ORION. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.

Who owns it

Insiders0.1%
Institutions66.7%
Public & other33.2%

4,509 institutional holders

Ownership breakdown from public market data.

Top holders

Blackrock Inc.8.15%
Vanguard Capital Management LLC6.52%
State Street Corporation5.95%
Vanguard Portfolio Management LLC3.01%
Geode Capital Management, LLC2.49%
Morgan Stanley1.85%
Capital World Investors1.72%
Bank of America Corporation1.59%

Largest institutional holders — last updated 6/30/2026.

Forensic scorecard

No major accounting red flags in the fundamentals we have — profit is backed by cash and returns look healthy.

Cash conversion1.68×

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash.

Net margin trend12.1% → 15.7%

Margin has expanded by about 3.6 points — the business is getting more profitable.

Return on equity32.4%

Latest ROE of 32.4% — capital is generating a healthy return.

Growth qualityrev 4% · PAT 19%

Profit growth is broadly tracking revenue growth — the earnings trend looks operational rather than one-off.

Computed by MarketChacha from reported figures (SEC XBRL). Education, not a rating or recommendation.

What's expected next

Next quarter

Rev $20.5B · EPS 4.60

Est. earnings growth +1.8%

Next fiscal year

Rev $73.2B · EPS 13.16

Est. earnings growth +6.8%

Analyst consensus estimates — not the company's own guidance.

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Financials at a glance

Source: SEC XBRL

Annual

Quarterly · last 8

Revenue (FY2025)

$67.5B

Net margin

15.7%

ROE

32.4%

Revenue CAGR (2y)

+4.5%

Profit CAGR (2y)

+18.8%

EPS (FY2025)

11.17

Net profit (FY2025)

$10.6B

Ask MarketChacha about IBM

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Financials

Yearly

Period	Revenue	Net profit	EPS	Net margin	ROE
FY2025	$67.5B	$10.6B	11.17	15.7%	32.4%
FY2024	$62.8B	$6.0B	6.43	9.6%	22.1%
FY2023	$61.9B	$7.5B	8.14	12.1%	33.3%

Quarterly

Period	Revenue	Net profit	EPS	Net margin
2026Q2	$17.2B	$2.2B	2.27	12.6%
2026Q1	$15.9B	$1.2B	1.28	7.6%
2025Q3	$16.3B	$1.7B	1.84	10.7%
2025Q2	$17.0B	$2.2B	2.31	12.9%
2025Q1	$14.5B	$1.1B	1.12	7.3%
2024Q3	$15.0B	$-330.0M	-0.36	-2.2%
2024Q2	$15.8B	$1.8B	1.96	11.6%
2024Q1	$14.5B	$1.6B	1.72	11.1%
2023Q3	$14.8B	$1.7B	1.84	11.6%
2023Q2	$15.5B	$1.6B	1.72	10.2%
2023Q1	$14.3B	$927.0M	1.01	6.5%

Figures as reported, in reporting currency. Source: SEC XBRL.

Filings & announcements

2026

10-Q filing
SEC7/23/2026
8-K — Results of operations, Exhibits
SEC7/22/2026material
8-K — Results of operations, Reg FD disclosure, Exhibits
SEC7/14/2026material
8-K — Material agreement, Material financial obligation, Exhibits
SEC6/23/2026material
8-K — Reg FD disclosure
SEC5/28/2026material
8-K — Executive/director change, Bylaw/charter change, Shareholder vote results
SEC5/1/2026material
10-Q filing
SEC4/23/2026
8-K — Results of operations, Exhibits
SEC4/22/2026material
8-K — Bylaw/charter change, Exhibits
SEC3/3/2026material
10-K filing
SEC2/24/2026
8-K — Exhibits
SEC2/2/2026material
8-K — Executive/director change, Exhibits
SEC1/30/2026material
8-K — Results of operations, Exhibits
SEC1/28/2026material

2025

8-K — Reg FD disclosure, Exhibits
SEC10/23/2025material
10-Q filing
SEC10/23/2025
8-K — Results of operations, Exhibits
SEC10/22/2025material

In the news

Education and discussion only — not investment advice. Financials from official filings (SEC/BSE) and reported company statements; market figures (delayed market data) are delayed and shown for reference only. Verify with the linked sources before acting.