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Upturn AI Summary - About
International Business Machines(IBM)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for IBM
11/11/2026: IBM (1-star) has a low Upturn Star Rating. Not recommended to BUY.
IBM is a mature, large-cap technology company that has transformed into a leader in enterprise hybrid cloud and artificial intelligence. Its main strength lies in its deep, sticky relationships with global institutions and a consistent revenue stream from software and critical infrastructure. The primary investment story centers on the success of its hybrid cloud platform and the scaling of watsonx for generative AI in the corporate market. Key risks include intense competition from large cloud hyperscalers and potential volatility in consulting demand. This stock is best suited for value or dividend-focused investors seeking stability rather than high-growth momentum, and developments in AI-driven software revenue should be monitored.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | IBM offers steady, moderate growth rather than the high-growth trajectory typically sought by growth investors. |
| Momentum investor | Weak fit | The stock generally lacks the high-volatility price trends favored by momentum strategies, even if an upturn signal is present. |
| Value investor | Strong fit | IBM's consistent cash flow, reasonable P/E ratio, and established market presence often attract value-oriented investors. |
| Dividend investor | Strong fit | The company's long-term commitment to dividend growth makes it a staple for income-focused portfolios. |
| Low-risk investor | Strong fit | IBM's large-cap status, diversified revenue streams, and long operating history provide relative stability compared to younger tech firms. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Low | The stock historically experiences less drastic price swings than high-growth or speculative tech stocks. |
| Valuation risk | Medium | While not currently overvalued, market corrections in the broader tech sector can impact IBM's stock price. |
| Competition risk (AI and Cloud) | High | Dominant competitors like MSFT and AWS pose a continuous threat to IBM's market share in cloud and AI. |
| Business quality | Strong | IBM possesses a strong franchise and deep, sticky relationships with critical enterprise infrastructure. |
| Dividend income | Strong | The dividend is supported by consistent cash generation, providing reliability for income seekers. |
| Execution risk | Medium | Successfully pivoting the massive organization toward new AI and cloud growth remains a complex management challenge. |
Price Behavior
Flat / Range-Bound
The stock price has been trading within a narrow range with minimal directional movement.
Choppy
The stock has experienced frequent reversals and pronounced short-term price swings.
Analysis of Past Performance
Type Stock | Historic Profit 5.41% | Avg. Invested days 47 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  4.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 11/11/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 231.11B USD | Price to earnings Ratio 20.86 | 1Y Target Price 259.3 |
Price to earnings Ratio 20.86 | 1Y Target Price 259.3 | ||
Volume (30-day avg) 5.3M shares | Beta 0.76 | 52 Weeks Range 196.41 - 327.83 | Updated Date 11/11/2026 |
52 Weeks Range 196.41 - 327.83 | Updated Date 11/11/2026 | ||
Dividends yield (FY) 2.76% | Basic EPS (TTM) 11.72 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Software | Hybrid cloud platforms (Red Hat), data, and AI software (watsonx). | This is IBM's high-margin engine for future growth. |
| Consulting | Systems integration, digital transformation services, and application management. | This segment provides steady, long-term service contracts with large enterprises. |
| Infrastructure | Mainframe hardware (IBM Z), Power systems, and storage hardware. | A reliable, steady-state business that supports critical global financial infrastructure. |
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 2026-10-21 | When After Market | Estimate 2.88 | Actual 2.95 |
Profitability
Profit Margin 15.99% | Operating Margin (TTM) 16.97% |
Management Effectiveness
Return on Assets (TTM) 5.33% | Return on Equity (TTM) 34.77% |
Valuation
Trailing PE 20.86 | Forward PE 18.45 | Enterprise Value 287.19B | Price to Sales(TTM) 3.31 |
Enterprise Value 287.19B | Price to Sales(TTM) 3.31 | ||
Enterprise Value to Revenue 4.13 | Enterprise Value to EBITDA 16.28 | Shares Outstanding 945.12M | Shares Floating 943.18M |
Shares Outstanding 945.12M | Shares Floating 943.18M | ||
Percent Insiders 0.1 | Percent Institutions 66.12 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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