IBM- International Business Machines Corporation
Technology · Information Technology Services
Price & Performance
Performance
Analysis & Verdict
Analyst Ratings
BuyWall Street consensus from 23 analysts
12-Month Price Target
$245.35
Based on analyst estimates; price targets are opinions, not guarantees.
Fair Value Estimates
Current price: $243.29
Graham Number
√(22.5 × EPS × Book Value)
$96.25
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
$109.78
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
7/10
70% score
Pays dividends
15Y hist.15+ years of dividend history
Dividend consistency (5Y+)
15 yrsUninterrupted dividend payments for at least 5 years
ROE above 10%
34.5%Return on equity - measures how efficiently capital is used
Positive profit margin
15.5%Net profit margin must be positive - company earns more than it spends
Revenue growth (annual)
+1.1%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
-1.8%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
188.97×Low financial leverage reduces risk of distress
Current ratio above 1
0.79×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$2.2B/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
2.89%Stock must distribute income to shareholders
Financials
Revenue & Results
Key Statistics
Earnings
Next Earnings
Oct 21, 2026
39
days
EPS (TTM)
$11.26
P/E (TTM)
21.6
Fwd P/E
18.5
SEC Filings & Reported Financials
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Insider Transactions
SEC Form 4 · officers, directors & 10% owners
Dividends & Income
Dividends
Current DY
2.89%
5Y Avg Annual
$6.3320
Last Payment
$1.6900
Ex-Date
08/10/2026
Annual dividends paid per share
| Ex-Date | Payment | Amount | Est. DY |
|---|---|---|---|
Latest08/10/2026 | 09/10/2026 | $1.6900 | 2.78% |
05/08/2026 | 06/08/2026 | $1.6900 | 2.78% |
02/10/2026 | 03/13/2026 | $1.6800 | 2.76% |
11/10/2025 | 12/11/2025 | $1.6800 | 2.76% |
08/08/2025 | 09/08/2025 | $1.6800 | 2.76% |
05/09/2025 | 06/09/2025 | $1.6800 | 2.76% |
02/10/2025 | 03/13/2025 | $1.6700 | 2.75% |
11/12/2024 | 12/13/2024 | $1.6700 | 2.75% |
Magic Number
Shares needed to self-fund your next purchase
$243.29
Price
$1.6900
Last div. (quarterly)
144
shares
Own 144 IBM shares ($35,033.76) and each quarterly dividend pays for 1 new share - the snowball runs on its own.
Investment target
$35,033.76
New shares / year
+4 shares
Dividend Calculator
2.78% yieldEstimate IBM dividend income at the current rate.
Per year
$277.86
Per month
$23.15
≈ 41.1 shares at $6.76/share a year. Estimate only - dividends can be cut or raised.
Tools & Simulators
IBM vs Peers, Indexes & Commodities
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Parameters
Final value
$426,404.61
Total invested
$130,000.00
Total interest
$296,404.61
Balance over time
Period breakdown
| Period | Balance | Invested | Interest |
|---|---|---|---|
| Start | $10,000.00 | $10,000.00 | $0.00 |
| Year 1 | $17,270.27 | $16,000.00 | $1,270.27 |
| Year 2 | $25,267.56 | $22,000.00 | $3,267.56 |
| Year 3 | $34,064.59 | $28,000.00 | $6,064.59 |
| Year 4 | $43,741.32 | $34,000.00 | $9,741.32 |
| Year 5 | $54,385.72 | $40,000.00 | $14,385.72 |
| Year 6 | $66,094.55 | $46,000.00 | $20,094.55 |
| Year 7 | $78,974.28 | $52,000.00 | $26,974.28 |
| Year 8 | $93,141.97 | $58,000.00 | $35,141.97 |
| Year 9 | $108,726.44 | $64,000.00 | $44,726.44 |
| Year 10 | $125,869.35 | $70,000.00 | $55,869.35 |
| Year 11 | $144,726.56 | $76,000.00 | $68,726.56 |
| Year 12 | $165,469.48 | $82,000.00 | $83,469.48 |
| Year 13 | $188,286.70 | $88,000.00 | $100,286.70 |
| Year 14 | $213,385.63 | $94,000.00 | $119,385.63 |
| Year 15 | $240,994.47 | $100,000.00 | $140,994.47 |
| Year 16 | $271,364.18 | $106,000.00 | $165,364.18 |
| Year 17 | $304,770.87 | $112,000.00 | $192,770.87 |
| Year 18 | $341,518.22 | $118,000.00 | $223,518.22 |
| Year 19 | $381,940.31 | $124,000.00 | $257,940.31 |
| Year 20 | $426,404.61 | $130,000.00 | $296,404.61 |
What is compound interest?
Compound interest means that the interest you earn in one period is added to your principal, so in the next period you earn interest on a larger base. This creates exponential growth: the longer your time horizon, the more dramatic the effect.
Which rate should I use?
The S&P 500 has historically returned ~10%/year before inflation over long periods - use this for an all-equity US index fund scenario. A balanced growth portfolio (stocks + bonds) is closer to 7%. High-yield savings accounts (HYSA) are currently paying around 4-5% with FDIC insurance and zero market risk. Bonds historically return ~4% annualized.
Formula used
FV = PV × (1+r)^n + PMT × ((1+r)^n − 1) / rwhere r is the monthly rate, n is the number of months, PV is the initial investment, and PMT is the monthly contribution. Annual rates are converted to monthly viar = (1 + annual%)^(1/12) − 1.
For educational purposes only. Not financial advice. Past returns do not guarantee future results.
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About International Business Machines Corporation
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.
Sector
Technology
Industry
Information Technology Services
Location
Armonk, United States
Employees
264,300
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International Business Machines Corporation (IBM) stock trades at $243.29, up 3.96% on the day. With a market capitalization of $229.21 billion, IBM is a mega-cap technology stock. It trades at a price-to-earnings (P/E) ratio of 21.6, a forward P/E of 18.5 and earnings per share (EPS) of $11.26. Over the most recent period the company reported 1% year-over-year revenue growth and a net profit margin of 15.5%. Below you'll find IBM's full fundamentals, fair-value estimates, dividend history, earnings and our buy, hold or avoid verdict for 2026.
IBM - Frequently Asked Questions
Is International Business Machines Corporation (IBM) a good stock to buy in 2026?
International Business Machines Corporation (IBM) shows strengths such as a strong 16% net margin and a 34% return on equity, while risks include high leverage (debt/equity of 189.0). Whether IBM is a good buy in 2026 depends on your time horizon and risk tolerance - review the full bull case, bear case and fair-value estimates above. This is informational analysis, not financial advice.
What is IBM's stock price today?
International Business Machines Corporation (IBM) trades at $243.29, up 3.96% on the session. Prices on this page update throughout the trading day.
Does IBM pay a dividend?
Yes. International Business Machines Corporation pays an annual dividend of $6.76 per share, a dividend yield of 2.89%. The most recent ex-dividend date was August 10, 2026. Its payout ratio is about 60% of earnings.
Is IBM overvalued?
With a P/E ratio of 21.6×, IBM trades at a roughly market-average valuation for the technology sector. Its PEG ratio is 2.27. See the Fair Value Estimates section above for Graham Number and dividend-based price targets.
What is IBM's market cap?
International Business Machines Corporation (IBM) has a market capitalization of $229.21 billion, classifying it as a mega-cap stock in the Technology sector.
Disclaimer: This page - including any buy/hold/avoid view, fair value or price estimate - is generated from market data for informational and educational purposes only and does not constitute financial, investment or trading advice. Data may be delayed or inaccurate. Always do your own research and consult a licensed financial advisor before making any investment decision.