IBM
What matters nowUpdated 5 h ago
- IBM was selected for Stage C of DARPA's Quantum Benchmarking Initiative on Oct 7, 2026, where DARPA evaluators will test its quantum hardware and system architecture; IBM expects its first fault-tolerant system in 2029, and no funding amount was stated 1. The same week IBM launched Ready for SAP Solutions for midsize ERP modernization 2.
- The pooled 24/7 venue price is 231.53, up 1.95% from the 227.11 previous close. Recent daily moves were +3.38% on Sep 14, -3.93% on Sep 16 and -3.30% on Sep 18, and the largest move in the recent window was -23.76% on Jul 14.
- Trailing 12-month revenue is $69.1B and free cash flow is $13.8B (20.0% of revenue), with a 15.5% net margin and 58.1% gross margin as of June 30, 2026. Revenue grew 7.9% year on year, though only 1.1% in the latest quarter; EPS is $11.29 (P/E 20.5), market cap $218.1B, FCF yield 6.3%, and net debt $54.8B.
- Software revenue rose 5% to $7.8B in Q2 2026, led by Red Hat hybrid cloud (+11%) and data (+19%); Distributed Infrastructure rose 37%, while IBM Z fell 42% and Consulting was flat at $5.3B. Over the past 180 days insiders made one sale of 25,000 shares ($5.8M) and no purchases.
- Q3 2026 earnings are confirmed for Oct 21, 2026; the outlook from July 22 calls for full-year constant-currency revenue growth of 4% to 5% and free cash flow up about $1B. Upcoming macro releases include CPI on Oct 14 and retail sales on Oct 15. Polymarket odds put no change in Fed rates after the October 2026 meeting at 81.5% and a 25 bp increase at 17.5%.
IBM sells hybrid cloud and AI software, consulting services, and enterprise infrastructure such as IBM Z mainframes and Power and storage systems. Software is the largest and most profitable segment, led by Red Hat, automation, data and transaction processing. Consulting is the second-largest by revenue but has the lowest gross margin. The company is in the middle of a shift from legacy hardware cycles toward AI, data and quantum bets.
How it makes money
IBM earns most of its money from recurring software subscriptions and support, which carry gross margins of about 83%, plus consulting fees for systems integration and AI transformation work at about 28% gross margin. Infrastructure sells mainframes and servers in multi-year upgrade cycles, so its revenue moves with the z-series product cycle. It also earns financing income from leasing and financing customer purchases. FY2025 revenue was $67.5B, with free cash flow of $14.7B.
Last 12 monthsChart & venues →
Valuation & fundamentalsFull financials →
TTM through 2026-06-30 from SEC filings (some quarters derived from annual and year-to-date figures). Ratios use our pooled 24/7 price. Quarterly statements →
Biggest businessesAll products & projects →
Software (hybrid cloud, automation, data, transaction processing)
Q2 2026 Software revenue rose 5% to $7.8B, led by Red Hat hybrid cloud (+11%) and data (+19%).
Consulting
Q2 2026 Consulting revenue was flat at $5.3B, up 1% at constant currency.
IBM Z mainframe
IBM Z revenue fell 42% in Q2 2026; mainframe revenue is cyclical.
Distributed infrastructure (Power and storage)
Distributed Infrastructure revenue rose 37% in Q2 2026, the strongest KPI in the release.
Latest newsAll news →
IBM advances to Stage C of DARPA's Quantum Benchmarking Initiative
IBM was selected for Stage C, the third phase of DARPA's Quantum Benchmarking Initiative.
IBM launches Ready for SAP Solutions for midsize ERP modernization
IBM introduced IBM Ready for SAP Solutions, a package to help midsize and fast-growing companies move to SAP cloud ERP and prepare their data for AI.
IBM and Red Hat's Lightwell fix more than 400 open-source Java vulnerabilities
IBM and Red Hat said their Lightwell service found and fixed more than 400 previously unknown vulnerabilities in widely used Java libraries.
IBM adds self-hosted deployment for Bob, including air-gapped environments
IBM made its Bob AI development platform available for on-premises, private-cloud, sovereign-cloud and air-gapped environments.
Frank Baker joins IBM board, which expands to 14 directors
IBM increased its board to 14 seats and elected Frank Baker, co-founder and managing partner of private equity firm Siris Capital Group, effective October 1, 2026.
IBM buys UK cybersecurity consultancy Logiq Consulting
IBM, through IBM UK and IBM Consulting, acquired Logiq Consulting, a UK cybersecurity firm that works with defence, critical national infrastructure and public-sector clients.
Products & businesses
Software (hybrid cloud, automation, data, transaction processing)
Q2 2026 Software revenue rose 5% to $7.8B, led by Red Hat hybrid cloud (+11%) and data (+19%).
Consulting
Q2 2026 Consulting revenue was flat at $5.3B, up 1% at constant currency.
IBM Z mainframe
IBM Z revenue fell 42% in Q2 2026; mainframe revenue is cyclical.
Distributed infrastructure (Power and storage)
Distributed Infrastructure revenue rose 37% in Q2 2026, the strongest KPI in the release.
watsonx and generative AI
IBM reported a generative AI book of business above $12.5B at the end of 2025.
Confluent (real-time data streaming)
Acquisition closed March 17, 2026 at about $11.6B; integrations with watsonx.data, MQ and IBM Z are the next step.
What it's building next
Segments
| Segment | Revenue | Share | |
|---|---|---|---|
| Software Hybrid cloud (Red Hat), automation, data (including watsonx.data) and transaction processing software. The largest segment and the main source of profit. | $29.96B | 44.4% | |
| Consulting Strategy and technology consulting, application operations and business process services, including AI-driven transformation work. | $21.05B | 31.2% | |
| Infrastructure IBM Z mainframes, distributed Power and storage systems, and infrastructure support. Revenue follows multi-year hardware upgrade cycles. | $15.72B | 23.3% | |
| Financing Leasing and financing of customer IT purchases. | $737.0M | 1.1% |
Fiscal 2025 · from the annual report
Valuation & fundamentals
TTM through 2026-06-30 from SEC filings (some quarters derived from annual and year-to-date figures). Ratios use our pooled 24/7 price.
Financial statements
| Metric | TTM | Q2 FY2026 2026-06-30 | Q1 FY2026 2026-03-31 | Q4 FY2025 2025-12-31 | Q3 FY2025 2025-09-30 | Q2 FY2025 2025-06-30 | Q1 FY2025 2025-03-31 | Q4 FY2024 2024-12-31 | Q3 FY2024 2024-09-30 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | $69.10B | $17.16B +1% | $15.92B +9% | $19.69Bd +12% | $16.33B +9% | $16.98B +8% | $14.54B +1% | $17.55Bd +1% | $14.97B +1% |
| Gross profit | $40.15B | $9.91B -1% | $8.95B +11% | $11.93Bd +14% | $9.36B +11% | $9.98B +11% | $8.03B +4% | $10.44Bd +2% | $8.42B +5% |
| Net income | $10.72B | $2.17B -1% | $1.22B +15% | $5.60Bd +92% | $1.74B | $2.19B +20% | $1.05B -34% | $2.91Bd -11% | −$330.0M -119% |
| EPS (diluted) | $11.29 | $2.27 -2% | $1.28 +14% | $5.90d +90% | $1.84 | $2.31 +18% | $1.12 -35% | $3.11d -13% | $-0.36 -120% |
| Operating cash flow | $14.89B | $2.60Bd +53% | $5.17B +18% | $4.04Bd -7% | $3.08Bd +7% | $1.70Bd -18% | $4.37B +5% | $4.33Bd -3% | $2.88Bd -6% |
| Capital expenditure | $1.10B | $229.0Md +9% | $232.0M -5% | $382.0Md +26% | $255.0Md -11% | $210.0Md -5% | $244.0M +2% | $303.0Md +1% | $286.0Md +2% |
| Cash & equivalents | $7.17B | $7.17B | $10.82B | $13.59B | $11.57B | $11.94B | $11.04B | $13.95B | $13.20B |
| Total debt | $61.99B | $61.99Bd | $66.36Bd | $61.26Bd | $63.12Bd | $64.16Bd | $63.28Bd | $54.97Bd | $56.58Bd |
| Shares outstanding | 942.1M | 942.1M | 939.9M | 937.0M | 934.7M | 931.5M | 929.4M | 926.3M | 924.6M |
| Metric | FY2025 2025-12-31 | FY2024 2024-12-31 | FY2023 2023-12-31 | FY2022 2022-12-31 |
|---|---|---|---|---|
| Revenue | $67.53B +8% | $62.75B +1% | $61.86B +2% | $60.53B |
| Cost of revenue | $28.24B +4% | $27.20B -1% | $27.56B -1% | $27.84B |
| Gross profit | $39.30B +11% | $35.55B +4% | $34.30B +5% | $32.69B |
| Research & development | $8.32B +11% | $7.48B +10% | $6.78B +3% | $6.57B |
| Depreciation & amortization | $2.28B +5% | $2.17B +3% | $2.11B -12% | $2.41B |
| Interest expense | $1.94B +13% | $1.71B +7% | $1.61B +32% | $1.22B |
| Income tax | −$242.0M | −$218.0M -119% | $1.18B | −$626.0M |
| Net income | $10.59B +76% | $6.02B -20% | $7.50B +358% | $1.64B |
| EPS (diluted) | $11.17 +74% | $6.43 -21% | $8.14 +352% | $1.80 |
| Dividends per share | $6.71 +1% | $6.67 +1% | $6.63 +1% | $6.59 |
| Diluted shares (weighted) | 948.7M | 937.2M | 922.1M | 912.3M |
| Operating cash flow | $13.19B -2% | $13.45B -3% | $13.93B +34% | $10.44B |
| Capital expenditure | $1.09B +4% | $1.05B -16% | $1.25B -8% | $1.35B |
| Dividends paid | $6.25B +2% | $6.15B +2% | $6.04B +2% | $5.95B |
| Cash & equivalents | $13.59B | $13.95B | $13.07B | $7.89B |
| Long-term debt (incl. current portion) | $54.84B | $49.88B | $50.12B | $46.19B |
| Total debt | $61.26Bd | $54.97Bd | $56.55Bd | $50.95Bd |
| Total assets | $151.88B | $137.18B | $135.24B | $127.24B |
| Total liabilities | $119.14B | $109.78B | $112.63B | $105.22B |
| Shareholders' equity | $32.65B | $27.31B | $22.53B | $21.94B |
| Shares outstanding | 937.0M | 926.3M | 915.0M | 906.1M |
From XBRL data in SEC filings. Small figures under each value: change vs the same period a year earlier. d = derived (e.g. Q4 = full year − first nine months).
NewsFull archive →
IBM advances to Stage C of DARPA's Quantum Benchmarking Initiative
IBM was selected for Stage C, the third phase of DARPA's Quantum Benchmarking Initiative.
IBM launches Ready for SAP Solutions for midsize ERP modernization
IBM introduced IBM Ready for SAP Solutions, a package to help midsize and fast-growing companies move to SAP cloud ERP and prepare their data for AI.
IBM and Red Hat's Lightwell fix more than 400 open-source Java vulnerabilities
IBM and Red Hat said their Lightwell service found and fixed more than 400 previously unknown vulnerabilities in widely used Java libraries.
IBM adds self-hosted deployment for Bob, including air-gapped environments
IBM made its Bob AI development platform available for on-premises, private-cloud, sovereign-cloud and air-gapped environments.
Frank Baker joins IBM board, which expands to 14 directors
IBM increased its board to 14 seats and elected Frank Baker, co-founder and managing partner of private equity firm Siris Capital Group, effective October 1, 2026.
IBM buys UK cybersecurity consultancy Logiq Consulting
IBM, through IBM UK and IBM Consulting, acquired Logiq Consulting, a UK cybersecurity firm that works with defence, critical national infrastructure and public-sector clients.
IBM completes acquisition of HRL Laboratories
IBM completed its acquisition of HRL Laboratories on August 26, 2026, ahead of the end-of-third-quarter timing it had given in July.
IBM and OpenAI form strategic partnership with a dedicated OpenAI Practice
IBM and OpenAI agreed a strategic partnership to deploy AI across core enterprise functions such as finance, procurement, customer operations and HR.
IBM signs $240M multi-year AI inference deal with Together AI
IBM agreed to a multi-year deal worth $240 million with Together AI to build a large inference cluster for open-source AI models on IBM Cloud.
IBM agrees to buy HRL Laboratories to expand its quantum hardware work
IBM agreed to acquire HRL Laboratories, a private research lab jointly owned by Boeing and General Motors, to add silicon-spin qubit, quantum sensing and quantum materials expertise.
IBM Q2 2026 confirms revenue of $17.2B and cuts 2026 growth outlook to 4% to 5%
IBM's full second-quarter 2026 report matched the July 14 preliminary figures: revenue of $17.2B, up 1%, with GAAP EPS of $2.27 and operating EPS of $2.93.
IBM declares $1.69 quarterly dividend, payable September 10, 2026
IBM's board approved a regular quarterly cash dividend of $1.69 per share, with a record date of August 10 and payment on September 10, 2026.
Analysts cut IBM targets and downgrade after the July 14 warning
After the July 14 warning, Bank of America cut its IBM price target to $280 from $330 but kept a Buy rating.
IBM warns Q2 results will miss, citing a weak mainframe cycle and delayed deals
IBM released preliminary second-quarter 2026 results showing revenue of $17.2B, up 1%, and non-GAAP EPS of $2.93, up 5%, both below analyst expectations.
IBM stock falls about 25% in its worst day on record
IBM shares fell about 25% on July 14, 2026, the largest one-day drop in the company's history, after the preliminary second-quarter warning.
IBM upgrades Bob AI development platform with multi-agent tools and premium packages
IBM upgraded Bob, its AI software-development platform, with subagents, parallel tool calling, automatic model matching and a built-in tool for tracking AI usage and cost.
IBM launches compact z17 and LinuxONE 5 systems for smaller data centers
IBM introduced single-frame and rack-mount versions of the z17 mainframe and a new LinuxONE Rockhopper 5 line, aimed at customers short on data-center space.
IBM commits more than $10B to quantum computing over five years
IBM plans to invest more than $10B in quantum computing over five years, covering research, capital spending, manufacturing scale-up, ecosystem partnerships and acquisitions.
IBM and Commerce Department plan Anderon quantum wafer foundry with $1B CHIPS incentive
IBM and the U.S.
IBM Think 2026 unveils next-generation watsonx Orchestrate and Sovereign Core
At IBM Think 2026 in Boston, IBM introduced a next-generation watsonx Orchestrate for multi-agent orchestration, which is in private preview.
IBM and Dallara build physics-based AI models for race car aerodynamics
IBM and Dallara Group are building physics-based AI models to speed up aerodynamic design of high-performance vehicles and are exploring quantum computing for later use.
IBM and MIT launch MIT-IBM Computing Research Lab adding quantum research
IBM and MIT launched the MIT-IBM Computing Research Lab, which grows out of the MIT-IBM Watson AI Lab and adds quantum computing to its research agenda.
IBM reports fiscal Q1 2026 results: revenue $15.92B, up 9% from a year earlier
IBM filed a Form 8-K with the SEC on Apr 22, 2026, 4:10 PM ET, reporting an event dated Apr 22, 2026.
IBM raises quarterly dividend to $1.69, its 31st consecutive annual increase
IBM's board raised the quarterly dividend to $1.69 per share from $1.68, marking the 31st consecutive annual increase.
IBM and Arm announce strategic collaboration on joint enterprise hardware
IBM and Arm announced a strategic collaboration to build hardware that combines both companies' chip architectures for enterprise AI and data-heavy workloads.
IBM and ETH Zurich launch 10-year initiative on AI and quantum algorithms
IBM and ETH Zurich agreed a 10-year initiative to develop algorithms that connect classical computing, machine learning and quantum systems.
IBM completes $11B Confluent acquisition at $31 per share in cash
IBM completed its acquisition of Confluent, the Apache Kafka data-streaming company, for $31 per share in cash, about $11B in enterprise value.
IBM and NVIDIA expand collaboration on GPU analytics, storage and cloud GPUs
At GTC 2026 IBM and NVIDIA expanded their work on enterprise AI.
IBM and Lam Research sign five-year collaboration on sub-1nm logic scaling
IBM and Lam announced a five-year agreement to develop materials and processes for logic chips below 1 nanometre.
Anthropic says Claude Code can speed COBOL modernization; IBM shares fall about 13%
Anthropic published a post arguing that Claude Code can automate the costly analysis phase of COBOL modernization, such as mapping dependencies and documenting legacy workflows.
SEC filings
| Oct 8, 26 | 3 | Form 3: Initial insider ownership statement | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: Laguarta Ramon (Director) — derivative/holdings only | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: Gorsky Alex (Director) — derivative/holdings only | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: HOWARD MICHELLE J (Director) — derivative/holdings only | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: LIVERIS ANDREW N (Director) — derivative/holdings only | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: MCNABB FREDERICK WILLIAM III (Director) — derivative/holdings only | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: Miebach Michael (Director) — derivative/holdings only | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: Pollack Martha E (Director) — derivative/holdings only | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: VOSER PETER R. (Director) — derivative/holdings only | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: ZOLLAR ALFRED W (Director) — derivative/holdings only | sec.gov ↗ |
| Oct 1, 26 | 8-K | 8-K: Director/Officer Change, Charter/Bylaw Amendment (Items 5.02, 5.03) | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: FARR DAVID N (Director) — derivative/holdings only | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: Buberl Thomas (Director) — derivative/holdings only | sec.gov ↗ |
| Oct 1, 26 | 4 | Form 4: Brown Marianne Catherine (Director) — derivative/holdings only | sec.gov ↗ |
| Aug 28, 26 | 4 | Form 4: KRISHNA ARVIND (Chairman, President & CEO, Director) — derivative/holdings only | sec.gov ↗ |
| Aug 28, 26 | 4 | Form 4: Thomas Robert David (Senior Vice President) — open-market sale 25,000 sh | sec.gov ↗ |
| Aug 26, 26 | 144 | Form 144: Notice of proposed insider sale | sec.gov ↗ |
| Aug 14, 26 | 8-K | 8-K: Exhibits (Item 9.01) | sec.gov ↗ |
| Aug 11, 26 | 424B5 | 424B5: Prospectus supplement | sec.gov ↗ |
| Aug 10, 26 | FWP | FWP: Free writing prospectus | sec.gov ↗ |
| Aug 10, 26 | 424B3 | 424B3: Filing | sec.gov ↗ |
| Jul 29, 26 | S-8 POS | S-8 POS: AMENDMENT NO. 1 | sec.gov ↗ |
| Jul 22, 26 | 10-Q | 10-Q: Quarterly report for the period ended Jun 30, 2026 | sec.gov ↗ |
| Jul 22, 26 | 8-K | 8-K: Results of Operations (Item 2.02) | sec.gov ↗ |
| Jul 14, 26 | 8-K | 8-K: Results of Operations, Regulation FD Disclosure (Items 2.02, 7.01) | sec.gov ↗ |