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Upturn AI SWOT - About
IBM 
International Business Machines (IBM)
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Upturn Advisory Summary
09/12/2025: IBM (4-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Number of Analysts
22 Analysts rated it
Well-followed company, solid analyst reports, reliable data for confident investing.
1 Year Target Price $281.32
1 Year Target Price $281.32
| 8 | Strong Buy |
| 2 | Buy |
| 8 | Hold |
| 2 | Sell |
| 2 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 78.04% | Avg. Invested days 68 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  4.0 |
| Profits based on simulation | Last Close 09/12/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 236.08B USD | Price to earnings Ratio 40.81 | 1Y Target Price 281.32 |
Price to earnings Ratio 40.81 | 1Y Target Price 281.32 | ||
Volume (30-day avg) 22 | Beta 0.7 | 52 Weeks Range 197.92 - 294.17 | Updated Date 09/14/2025 |
52 Weeks Range 197.92 - 294.17 | Updated Date 09/14/2025 | ||
Dividends yield (FY) 2.60% | Basic EPS (TTM) 6.21 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 9.11% | Operating Margin (TTM) 18.32% |
Management Effectiveness
Return on Assets (TTM) 4.81% | Return on Equity (TTM) 22.67% |
Valuation
Trailing PE 40.81 | Forward PE 21.88 | Enterprise Value 288356236692 | Price to Sales(TTM) 3.69 |
Enterprise Value 288356236692 | Price to Sales(TTM) 3.69 | ||
Enterprise Value to Revenue 4.5 | Enterprise Value to EBITDA 22.35 | Shares Outstanding 931518976 | Shares Floating 929395378 |
Shares Outstanding 931518976 | Shares Floating 929395378 | ||
Percent Insiders 0.12 | Percent Institutions 65.15 |
Upturn AI SWOT
International Business Machines
Company Overview
History and Background
International Business Machines (IBM) was founded in 1911 as the Computing-Tabulating-Recording Company (CTR). It was renamed IBM in 1924. IBM played a pivotal role in the development of computing technology throughout the 20th century, from punch-card systems to mainframes to personal computers. It has since transitioned to focus on cloud computing, artificial intelligence, and consulting services.
Core Business Areas
- Software: Develops and sells software for hybrid cloud and AI, including data management, application development, and automation.
- Consulting: Provides consulting services related to business transformation, technology implementation, and operations.
- Infrastructure: Offers a range of infrastructure solutions, including hybrid cloud platforms, servers, and storage systems.
- Financing: Provides financing solutions to clients purchasing IBM products and services.
Leadership and Structure
Arvind Krishna is the Chairman and Chief Executive Officer. The organizational structure is based on business units aligned with its core business areas, supported by central functions like finance, marketing, and research.
Top Products and Market Share
Key Offerings
- Red Hat: IBM acquired Red Hat in 2019. A leading provider of open-source solutions, including Red Hat Enterprise Linux and OpenShift. Competitors include VMware (VMW), Microsoft (MSFT) Azure, and Amazon (AMZN) AWS. Estimated annual revenue is $6 Billion
- IBM Cloud: A suite of cloud computing services, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Competitors include Amazon Web Services (AMZN), Microsoft Azure (MSFT), and Google Cloud Platform (GOOGL).
- IBM Consulting: Provides strategic consulting, technology consulting, and implementation services across various industries. Competitors include Accenture (ACN), Deloitte, and McKinsey & Company.
Market Dynamics
Industry Overview
The IT industry is characterized by rapid innovation, increasing cloud adoption, and growing demand for AI and data analytics solutions. The market is highly competitive, with both established players and emerging startups vying for market share.
Positioning
IBM is positioning itself as a leader in hybrid cloud and AI solutions, leveraging its strong brand recognition, extensive customer base, and deep technical expertise. Its competitive advantages include its hybrid cloud strategy, Red Hat acquisition, and focus on enterprise clients.
Total Addressable Market (TAM)
The global TAM for IT services, cloud computing, and AI is estimated to be several trillion dollars. IBM is targeting a significant portion of this TAM by focusing on its core strengths in hybrid cloud, AI, and consulting.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Extensive global presence
- Large and loyal customer base
- Deep technical expertise in areas like AI and cloud
- Red Hat acquisition
Weaknesses
- Relatively slow revenue growth in recent years
- Complex organizational structure
- High debt level
- Aging workforce
Opportunities
- Growing demand for hybrid cloud solutions
- Increasing adoption of AI and data analytics
- Expansion into emerging markets
- Strategic partnerships and acquisitions
- Digital transformation initiatives by enterprises
Threats
- Intense competition from other technology companies
- Rapid technological changes
- Economic downturns
- Geopolitical risks
- Security threats and data breaches
Competitors and Market Share
Key Competitors
- Accenture (ACN)
- Microsoft (MSFT)
- Amazon (AMZN)
Competitive Landscape
IBM faces intense competition from larger and more agile players. However, it has competitive advantages in certain areas, such as its deep technical expertise and established relationships with enterprise clients. IBMs legacy footprint and internal structure have also been disadvantages compared to its more agile competitors.
Major Acquisitions
Envizi
- Year: 2022
- Acquisition Price (USD millions): 0
- Strategic Rationale: Strategic rationale was to accelerate IBM's sustainability efforts and help clients achieve their environmental goals.
Sentaca
- Year: 2023
- Acquisition Price (USD millions): 0
- Strategic Rationale: Strategic rationale was to expand its consulting capabilities in network and cloud modernization
Growth Trajectory and Initiatives
Historical Growth: IBM's historical growth has been relatively slow in recent years, as it has transitioned from legacy businesses to new growth areas. Total Growth 1.24% over past 5 years.
Future Projections: Analysts project modest revenue growth for IBM in the coming years, driven by its hybrid cloud and AI initiatives. EPS growth is expected to be higher, due to cost-cutting measures and share repurchases.
Recent Initiatives: Recent strategic initiatives include the acquisition of Red Hat, investments in AI and cloud computing, and the streamlining of its organizational structure.
Summary
IBM is a large, established technology company undergoing a transformation. While it possesses strengths like a strong brand and a large customer base, its growth has been sluggish. IBM is betting on hybrid cloud and AI to drive future growth, but faces stiff competition. Streamlining and cost management will be key to improving profitability.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
Disclaimers:
The information provided is for informational purposes only and should not be considered as financial advice. Market conditions are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About International Business Machines
Exchange NYSE | Headquaters Armonk, NY, United States | ||
IPO Launch date 1962-01-02 | CEO, President & Chairman Mr. Arvind Krishna | ||
Sector Technology | Industry Information Technology Services | Full time employees 270300 | Website https://www.ibm.com |
Full time employees 270300 | Website https://www.ibm.com | ||
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 allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. Its Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry. The Infrastructure segment provides on-premises and cloud based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. Its Financing segment offers client and commercial financing, facilitates IBM clients' acquisition of hardware, software, and services. It has strategic partnership with various companies, including hyperscalers, service providers, system integrators, and software and hardware vendors that includes Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
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