International Business Machines (IBM) financials
NYSE · Technology · Information Technology Services · 264,300 employees · CEO Arvind Krishna
- Price
- $257.81 -0.18%
- Market cap
- $244B
- Enterprise value
- $302B
- Last report
- Q3 '26 filed 2026-10-22
- Next report
- 2027-01-27 EPS est. $4.63
Revenue (TTM)$69.9B+6.8% vs a year agoLast 4 quarters; bars = each quarter
Operating margin (TTM)18.0%+0.5 pp vs a year agoOperating income $12.6B
Net income (TTM)$11.2B+41.3% vs a year agoAfter tax, incl. non-operating gains
Free cash flow (TTM)$14.3B+17.8% vs a year agoCapex $1.49B
Diluted EPS (TTM)$11.76+40.7% vs a year agoSum of the last 4 quarters
Net cash-$56.1B-8.4% vs a year agoCash + short-term investments - debt
Valuation & key figures
- Market cap
- $244B EV $302B
- Revenue
- $69.9B Trailing 12 months
- Revenue growth
- +5% FY2026 consensus
- Profit margin
- 16.0% Net income / revenue, TTM
- P/E
- 21.7× Forward 20.8× (FY2026)
- P/S
- 3.5× Price / sales, TTM
- EV / EBITDA
- 17.0× TTM
- Free cash flow
- $14.3B Trailing 12 months
- Net income
- $11.2B Trailing 12 months
- Revenue estimate
- $70.6B FY2026 consensus
- Earnings
- 2027-01-27 Revenue est. $20.4B
- Dividend
- $6.74 Per share, last 12 months
Key takeaways
Computed from the reported numbers - every statement carries the figure it rests on.
- Last report (2026-10-21): revenue beat by 1.7%, EPS beat by 3.5%Revenue $17.1B vs $16.8B expected (+1.7%); EPS $2.95 vs $2.85 (+3.5%).
- Revenue growth slowing: 4.7% year on yearQ3 '26 revenue $17.1B, against an average of 8.0% over the four quarters before.
- Operating margin 18.0% (TTM), +0.5 pp on a year agoOperating income grew 10.1% while revenue grew 6.8%.
- 19.6% of pre-tax profit is eaten by non-operating lossesPre-tax income $10.5B vs operating income $12.6B (TTM). Losses on equity stakes and other one-off items cut net income and EPS - operating income is the cleaner measure of the business.
- Capex 2.1% of revenue (a year ago 2.0%)$1.49B invested in the last 4 quarters (+14.1% on a year earlier). Free cash flow $14.3B = 128.4% of net income.
- Returned $7.15B to shareholders = 49.9% of free cash flowBuybacks $817M (a year earlier $0), dividends $6.34B, stock-based pay $1.47B (TTM).
- Diluted share count up 0.5% in a year954M diluted shares in Q3 '26, 949M a year earlier.
- Net debt $56.1BCash + short-term investments $11.1B, debt incl. leases $67.1B; a year ago net debt $51.7B.
Last quarter: Q3 '26
Quarter ended 2026-09-30. Compared with the same quarter a year earlier and with the analyst consensus before the report.
Quarter vs a year ago
| Q3 '26 | Year ago | Change | |
|---|---|---|---|
| Revenue | $17.1B | $16.3B | +4.7% |
| Gross margin | 56.8% | 58.7% | -1.9 pp |
| Operating income | $2.88B | $2.66B | +8.3% |
| Operating margin | 16.8% | 16.3% | +0.6 pp |
| Net income | $2.19B | $1.74B | +25.5% |
| Diluted EPS | $2.30 | $1.84 | +25.0% |
| Operating cash flow | $4.03B | $3.08B | +30.6% |
| Capex | $486M | $255M | +90.6% |
| Free cash flow | $3.54B | $2.83B | +25.2% |
| R&D | $2.38B | $2.08B | +14.2% |
| Stock-based compensation | $535M | $443M | +20.8% |
Reported vs consensus
2026-10-21| Actual | Consensus | vs consensus | |
|---|---|---|---|
| Revenue | $17.1B | $16.8B | +1.7% |
| EPS (as estimated) | $2.95 | $2.85 | +3.5% |
From the report of 2026-10-21 for Q3 '26: revenue and the EPS analysts estimate (often adjusted), so it can differ from the EPS of the statements above.
EPS vs consensus
last 8 reportsRevenue
Where the money comes from - by business line and by region, quarter by quarter.
Revenue, operating income and growth
quarterlyRevenue by business line
stacked, quarterly| Segment | Q3 '26 | y/y | Share | TTM | TTM y/y | 12 quarters |
|---|---|---|---|---|---|---|
| Software | $7.8B | +8.3% | 45.6% | $31.6B | +9.7% | |
| Consulting | $5.34B | +0.2% | 31.2% | $21.3B | +1.9% | |
| Infrastructure Services | $3.71B | +4.2% | 21.7% | $16B | +7.8% | |
| Financing | $192M | -4.0% | 1.1% | $778M | +7.0% | |
| Segment Reconciling Items | $66M | +73.7% | 0.4% | $96M | -1.0% |
Revenue by region
share of total| Segment | Q3 '26 | y/y | Share | TTM | TTM y/y | 12 quarters |
|---|---|---|---|---|---|---|
| Americas | $8.58B | +5.3% | 50.1% | $34.4B | +6.3% | |
| E M E A | $5.43B | +3.3% | 31.7% | $23.3B | +10.7% | |
| Asia Pacific | $3.1B | +5.6% | 18.1% | $12.2B | +1.5% |
Margins & cost structure
How much of each unit of revenue is left at each level - and where the costs go.
Margins
quarterlyCosts as % of revenue
quarterlyCash flow & capital allocation
Cash generated, what it is spent on, and what reaches shareholders.
Operating cash flow, capex, free cash flow
quarterlyUses of cash vs operating cash flow
fiscal yearsLast 4 quarters
cash flow statement- Operating cash flow
- $15.8B
- Capex
- -$1.49B
- Buybacks
- -$817M
- Dividends
- -$6.34B
- Acquisitions
- -$11.7B
- Net debt issued
- $347M
- Stock-based compensation
- $1.47B
- Free cash flow
- $14.3B
- Returned to shareholders / FCF
- 49.9%
Share count and EPS
quarterly, dilutedBalance sheet
Liquidity, investments and debt at each quarter end.
Cash, investments and debt
quarter endsValuation & returns
Today's multiples against the company's own last five fiscal years; analyst targets and ratings.
Multiples and returns
TTM vs 5 fiscal years| Now | 5y average | Where today sits in the 5-year range | |
|---|---|---|---|
| P/E (TTM) | 21.7× | 35.6× | 19.9× – 77.4× |
| EV / EBITDA | 17.0× | 18.1× | 13.3× – 24.2× |
| EV / Sales | 4.3× | 3.6× | 2.9× – 4.9× |
| Price / FCF | 17.0× | 15.9× | 11.9× – 22.8× |
| Price / Book | 6.9× | 6.9× | 5.8× – 8.5× |
| FCF yield | 5.9% | 6.7% | 4.4% – 8.4% |
| Return on invested capital | 9.9% | 8.3% | 6.3% – 10.4% |
| Return on equity | 32.9% | 25.1% | 7.5% – 33.3% |
Analysts
Consensus target $271.07 (+5.1%)
range $175.00 – $350.00 · rating Buy
Strong buy1
Buy23
Hold23
Sell5
Strong sell0
Outlook
Analyst consensus for the coming fiscal years and what it implies at today's price.
Consensus estimates
| Fiscal year | Revenue | Growth | EPS | Growth | P/E at today's price | Analysts (EPS) |
|---|---|---|---|---|---|---|
| FY2026 | $70.6B | +4.5% | $12.41 | +11.1% | 20.8× | 13 |
| FY2027 | $73.3B | +3.8% | $13.27 | +6.9% | 19.4× | 14 |
| FY2028 | $77.4B | +5.6% | $14.53 | +9.4% | 17.7× | 7 |
| FY2029 | $81.2B | +4.9% | $14.09 | -3.0% | 18.3× | 2 |
| FY2030 | $83.3B | +2.7% | $12.85 | -8.8% | 20.1× | 4 |
Financial statements
Every line of the income statement, balance sheet and cash flow statement - 12 quarters and 10 fiscal years, as values, as % of revenue or as growth.
Every reported line
All 359 figures International Business Machines Corporation tagged in its recent 10-Q / 10-K filings, with the official SEC label and definition - including the notes (leases, taxes, buybacks, employees, ...).
| Line (SEC label) | Latest quarter | Year ago | y/y | Latest FY | Prior FY | y/y |
|---|---|---|---|---|---|---|
| $1.23B | – | – | – | – | – | |
| $2.67B | – | – | – | – | – | |
| Accounts and Financing Receivables, Held-for-Sale, Not Part of Disposal Group, after Valuation Allowance | $774M | $745M | +3.9% | $1.13B | $900M | +25.7% |
| Accounts Payable, Current | $4.49B | $3.87B | +16.1% | $4.76B | $4.03B | +18.0% |
| Accounts Receivable, after Allowance for Credit Loss, Current | $5.79B | $5.53B | +4.7% | $8.11B | $6.8B | +19.2% |
| Accounts Receivable, Allowance for Credit Loss | $115M | $116M | -0.9% | $99M | $114M | -13.2% |
| Accounts Receivable, Allowance for Credit Loss, Current | $115M | $116M | -0.9% | $99M | $114M | -13.2% |
| Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $9M | $10M | -10.0% | $5M | -$2M | +350.0% |
| Accounts Receivable, Allowance for Credit Loss, Writeoff | $5M | $5M | 0.0% | $31M | $78M | -60.3% |
| Accrual for Environmental Loss Contingencies | $250M2025-12-31 | $247M | +1.2% | $250M | $247M | +1.2% |
| Accrued Environmental Loss Contingencies, Noncurrent | $207M2025-12-31 | $204M | +1.5% | $207M | $204M | +1.5% |
| Accumulated Other Comprehensive Income (Loss), Net of Tax | -$15B | -$16B | +6.2% | -$15.7B | -$15.3B | -2.9% |
| Allowance for Doubtful Other Receivables, Current | $29M | $38M | -23.7% | $37M | $31M | +19.4% |
| Amortization of Intangible Assets | $828M | $699M | +18.5% | $2.74B | $2.5B | +9.5% |
| Assets | $155B | $146B | +5.9% | $152B | $137B | +10.7% |
| Assets for Plan Benefits, Defined Benefit Plan | $7.72B | $8.04B | -4.1% | $7.54B | $7.49B | +0.7% |
| Assets, Current | $31.2B | $32.7B | -4.7% | $36.9B | $34.5B | +7.1% |
| Assets, Fair Value Disclosure | $6.67B | – | – | $8.92B | $8.39B | +6.3% |
| Capitalized Contract Cost, Amortization | – | – | – | $1.66B | $1.36B | +21.9% |
| Capitalized Contract Cost, Net | $1.91B2025-12-31 | $1.75B | +9.2% | $1.91B | $1.75B | +9.2% |
| Capitalized Contract Cost, Net, Current | $1.18B | $1.11B | +5.8% | $1.08B | $959M | +13.0% |
| Capitalized Contract Cost, Net, Noncurrent | $808M | $768M | +5.2% | $825M | $788M | +4.7% |
| Cash and Cash Equivalents, at Carrying Value | $9.23B | $11.6B | -20.2% | $13.6B | $13.9B | -2.6% |
| Cash and Cash Equivalents, Fair Value Disclosure | $4.13B | – | – | $7.49B | $6.95B | +7.7% |
| Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $9.28B | $11.6B | -20.0% | $13.6B | $14.2B | -3.7% |
| Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | $2.06B | -$427M | +583.4% | -$520M | $1.07B | -148.6% |
| Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | $114M | -$27M | +522.2% | -$140M | $116M | -220.7% |
| Common Stock, Dividends, Per Share, Cash Paid | $1.69 | $1.68 | +0.6% | $6.71 | $6.67 | +0.6% |
| Common Stock, Par or Stated Value Per Share | $0.20 | $0.20 | 0.0% | $0.20 | $0.20 | 0.0% |
| Common Stock, Shares Authorized | 4.69B | 4.69B | 0.0% | 4.69B | 4.69B | 0.0% |
| Common Stock, Shares, Issued | 2.3B | 2.29B | +0.5% | 2.29B | 2.28B | +0.5% |
| Common Stock, Shares, Outstanding | 937M2025-12-31 | 926M | +1.2% | 937M | 926M | +1.2% |
| Common Stocks, Including Additional Paid in Capital | $65.1B | $62.8B | +3.7% | $63.3B | $61.4B | +3.2% |
| Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $2.36B | $1.8B | +30.7% | $10.1B | $9.52B | +6.6% |
| Contract with Customer, Asset, after Allowance for Credit Loss, Current | $667M | $533M | +25.1% | $482M | $433M | +11.3% |
| Contract with Customer, Liability, Revenue Recognized | $2.7B | $2.5B | +8.0% | $12.2B | $11B | +10.9% |
| Cost of Goods Sold, Sales-type Lease | $31M | $66M | -53.0% | $528M | $176M | +200.0% |
| Cost of Revenue | $7.39B | $6.97B | +6.0% | $28.2B | $27.2B | +3.8% |
| Current Federal Tax Expense (Benefit) | – | – | – | -$1.72B | -$335M | -414.0% |
| Current Foreign Tax Expense (Benefit) | – | – | – | $2.3B | $2.3B | +0.1% |
| Current State and Local Tax Expense (Benefit) | – | – | – | $135M | $152M | -11.2% |
| Debt and Equity Securities, Realized Gain (Loss) | -$18M | $3M | -700.0% | -$7M | $20M | -135.0% |
| Debt Instrument, Unamortized Discount | $791M | $815M | -2.9% | $806M | $824M | -2.2% |
| Debt Issuance Costs, Net | $199M | $191M | +4.2% | $185M | $168M | +10.1% |
| Debt Securities, Available-for-sale, Allowance for Credit Loss, Period Increase (Decrease) | $0 | $0 | – | $0 | $0 | – |
| DebtSecuritiesAvailableForSaleExcludingAccruedInterestCurrent | $1.83B | $3.29B | -44.5% | $830M | $644M | +28.9% |
| Deferred Federal Income Tax Expense (Benefit) | – | – | – | -$119M | -$2.2B | +94.6% |
| Deferred Foreign Income Tax Expense (Benefit) | – | – | – | -$708M | $203M | -448.8% |
| Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | $209M | $30M | +596.7% | $36M | $176M | -79.5% |
| Deferred Income Tax Assets, Net | $8.83B | $8.51B | +3.8% | $8.61B | $6.98B | +23.4% |
| Deferred Income Tax Expense (Benefit) | – | – | – | -$957M | -$2.33B | +58.9% |
| Deferred Income Tax Liabilities, Net | $781M2025-12-31 | $815M | -4.2% | $781M | $815M | -4.2% |
| Deferred Revenue, Current | $15.2B | $13.9B | +9.3% | $16.1B | $13.9B | +15.8% |
| Deferred Revenue, Noncurrent | $4.32B | $3.86B | +11.8% | $4.27B | $3.62B | +17.9% |
| Deferred State and Local Income Tax Expense (Benefit) | – | – | – | -$130M | -$335M | +61.2% |
| Deferred Tax Assets, Deferred Income | $797M2025-12-31 | $790M | +0.9% | $797M | $790M | +0.9% |
| Deferred Tax Assets, Goodwill and Intangible Assets | $3.34B2025-12-31 | $2.48B | +34.6% | $3.34B | $2.48B | +34.6% |
| Deferred Tax Assets, Gross | $18.4B2025-12-31 | $16.5B | +11.4% | $18.4B | $16.5B | +11.4% |
| Deferred Tax Assets, Hedging Transactions | $270M2025-12-31 | $0 | – | $270M | $0 | – |
| Deferred Tax Assets, in Process Research and Development | $4.43B2025-12-31 | $4.19B | +5.8% | $4.43B | $4.19B | +5.8% |
Source: SEC companyfacts (XBRL of every 10-Q / 10-K). Cash-flow quarters are derived from the year-to-date figures the 10-Q tags. Segment breakdowns are tagged with dimensions and are shown in the segment section instead.
Sources
Statements, segment revenue, metrics, estimates: Financial Modeling Prep. Segment profits and every reported line: SEC EDGAR (XBRL). Filings read: 10-Q 2026-09-30, 10-Q 2026-06-30, 10-Q 2026-03-31, 10-K 2025-12-31, 10-Q 2025-09-30, 10-Q 2025-06-30, 10-Q 2025-03-31, 10-K 2024-12-31, 10-Q 2024-09-30
Data as of 2026-11-01