International Business Machines Corporation (IBM) stock analysis
Company overview and business model
Source fact: 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 has a strategic partnership with OpenAI. 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.
Classification: NYSE · Technology · Information Technology Services
Revenue and growth
Source fact: Revenue was USD 67.54 billion for the period ending 2025-12-31.
Caverian calculation: Revenue changed +7.6% (FY2025 vs FY2024).
Profitability
Source fact: Net income was USD 10.59 billion in the latest reported period.
Source metric: Reported net margin was 15.7%.
Balance sheet and liquidity
Source fact: Cash and equivalents were USD 13.59 billion.
Source fact: Total debt was USD 64.61 billion.
Source metric: Current ratio was 0.96x.
Cash-flow analysis
Source fact: Operating cash flow was USD 13.19 billion.
Source fact: Free cash flow was USD 11.46 billion.
Valuation
Source metrics: Trailing P/E 20.75x; Forward P/E 17.91x; Price to book 6.44x; Price to sales 3.21x; EV/EBITDA 16.95x.
Caverian model output: Value score was 47/100.
Competitive position
Classification: Peer context: Information Technology Services within Technology.
Caverian model output: Quality score was 68/100.
Caverian model output: Growth score was 75/100.
Material risks
Caverian model interpretation: Watch out: short-term cash may not cover short-term bills.
Caverian calculation: Altman Z-score was 3.25 (safe zone).
Caverian calculation: Piotroski F-score was 6/9.
Data sources and freshness
Freshness: This report uses a stored upstream snapshot; statement periods are shown alongside the figures.
Methodology and limitations
Facts reproduce stored upstream fields. Calculations derive only from the displayed stored statements. Model outputs are Caverian interpretations, not investment advice or a buy/sell recommendation.
How Caverian approaches valuation · Sources and product principles