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IBM logo IBM
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International Business Machines (IBM)

Upturn stock ratingUpturn stock rating
$287.43
Last Close (24-hour delay)
Profit since last BUY13.3%
upturn advisory
Strong Buy
BUY since 41 days
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  • SELL Advisory (Loss)​
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Upturn Advisory Summary

07/10/2025: IBM (5-star) is a STRONG-BUY. BUY since 41 days. Profits (13.30%). Updated daily EoD!

Upturn Star Rating

rating

Outstanding Performance

These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.

Number of Analysts

rating

22 Analysts rated it

Well-followed company, solid analyst reports, reliable data for confident investing.

1 Year Target Price $258.02

1 Year Target Price $258.02

Analysts Price Target For last 52 week
$258.02 Target price
52w Low $176.47
Current$287.43
52w High $296.16

Analysis of Past Performance

Type Stock
Historic Profit 96.41%
Avg. Invested days 67
Today’s Advisory Strong Buy
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 5.0
Stock Returns Performance Upturn Returns Performance 4.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 07/10/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 267.14B USD
Price to earnings Ratio 49.05
1Y Target Price 258.02
Price to earnings Ratio 49.05
1Y Target Price 258.02
Volume (30-day avg) 22
Beta 0.65
52 Weeks Range 176.47 - 296.16
Updated Date 07/11/2025
52 Weeks Range 176.47 - 296.16
Updated Date 07/11/2025
Dividends yield (FY) 2.28%
Basic EPS (TTM) 5.86

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 8.71%
Operating Margin (TTM) 12.4%

Management Effectiveness

Return on Assets (TTM) 4.47%
Return on Equity (TTM) 21.85%

Valuation

Trailing PE 49.05
Forward PE 26.45
Enterprise Value 319025122270
Price to Sales(TTM) 4.25
Enterprise Value 319025122270
Price to Sales(TTM) 4.25
Enterprise Value to Revenue 5.08
Enterprise Value to EBITDA 25.88
Shares Outstanding 929396992
Shares Floating 927361197
Shares Outstanding 929396992
Shares Floating 927361197
Percent Insiders 0.12
Percent Institutions 65.27

ai summary icon Upturn AI SWOT

International Business Machines

stock logo

Company Overview

overview logo History and Background

International Business Machines (IBM) was founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924. It initially focused on tabulating machines, then expanded to computers in the mid-20th century. IBM has been at the forefront of technological innovation, contributing significantly to the development of mainframes, personal computers, and artificial intelligence.

business area logo Core Business Areas

  • Software: Develops and sells software solutions, including hybrid cloud platforms, AI, data and analytics, automation, and security software. Provides related support and services.
  • Consulting: Offers business consulting, technology services, and digital transformation services to clients across various industries. Helps clients with strategy, design, and implementation of technology solutions.
  • Infrastructure: Provides infrastructure solutions including hybrid cloud infrastructure, servers, storage, and networking solutions.
  • Financing: Provides financing solutions to clients and partners, enabling them to acquire IBM hardware, software, and services.

leadership logo Leadership and Structure

Arvind Krishna is the Chairman and CEO of IBM. The company is structured into several business units, each focusing on specific product lines and services. IBM operates with a global matrix structure, balancing centralized functions with regional operations.

Top Products and Market Share

overview logo Key Offerings

  • Hybrid Cloud Platform (Red Hat OpenShift): IBM's hybrid cloud platform allows organizations to manage and deploy applications across multiple environments. Competitors: Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP). Market share is growing, estimated to be around 5-7% of the total cloud market. Revenue from Red Hat contributed significantly to IBM's cloud revenue.
  • Consulting Services: IBM's consulting services offer strategic guidance and implementation support. Competitors: Accenture, Deloitte, Tata Consultancy Services. IBM's consulting revenue is a significant part of IBM's total revenue. Specific market share data varies depending on the segment of the consulting market.
  • IBM Z: High-end enterprise servers, used for critical business applications. Competitors: Oracle, Dell. Market share within the mainframe space is significant, though that market is shrinking.

Market Dynamics

industry overview logo Industry Overview

The IT industry is experiencing rapid growth driven by cloud computing, artificial intelligence, cybersecurity, and digital transformation. The industry is highly competitive, with a mix of established players and emerging startups.

Positioning

IBM is transitioning from a hardware-centric company to a software and services provider, focusing on hybrid cloud and AI. It holds a strong position in enterprise solutions and has a reputation for reliability and innovation.

Total Addressable Market (TAM)

The TAM for the IT industry is estimated to be in the trillions of dollars. IBM is positioned to capture a significant share of this market with its hybrid cloud and AI offerings.

Upturn SWOT Analysis

Strengths

  • Established brand reputation
  • Extensive patent portfolio
  • Strong presence in enterprise solutions
  • Growing hybrid cloud capabilities
  • Significant investment in research and development

Weaknesses

  • Slow revenue growth in recent years
  • High debt levels
  • Complex organizational structure
  • Declining legacy hardware businesses
  • Integration challenges with acquired companies

Opportunities

  • Growing demand for hybrid cloud solutions
  • Increasing adoption of AI and machine learning
  • Expansion into emerging markets
  • Strategic partnerships and acquisitions
  • Increased focus on cybersecurity

Threats

  • Intense competition from cloud providers like AWS, Azure, and GCP
  • Rapid technological changes
  • Economic downturns
  • Security breaches and data privacy concerns
  • Talent shortage in key areas like AI and cloud computing

Competitors and Market Share

competitor logo Key Competitors

  • MSFT
  • ORCL
  • ACN

Competitive Landscape

IBM's strength lies in its established enterprise relationships and hybrid cloud offerings. Its competitors have greater market share in the public cloud space. Accenture excels in consulting and systems integration.

Major Acquisitions

Envizi

  • Year: 2022
  • Acquisition Price (USD millions): 100
  • Strategic Rationale: Enhanced IBM's environmental intelligence capabilities, helping clients improve sustainability.

Red Hat

  • Year: 2019
  • Acquisition Price (USD millions): 34000
  • Strategic Rationale: Expanded IBM's hybrid cloud capabilities, providing a platform for open innovation.

Growth Trajectory and Initiatives

Historical Growth: IBM's historical growth has been modest, with periods of decline and slow recovery.

Future Projections: Analysts expect IBM's revenue to grow in the low single digits, driven by its hybrid cloud and AI initiatives.

Recent Initiatives: IBM's recent strategic initiatives include acquisitions of Red Hat and other cloud-focused companies, as well as investments in AI and quantum computing.

Summary

IBM is a large, established technology company undergoing a transformation to focus on hybrid cloud and AI. It possesses significant strengths in enterprise solutions and has a strong brand. However, it faces challenges related to revenue growth, competition, and debt levels. The success of IBM hinges on the success of its hybrid cloud strategy and continued innovation in AI.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company SEC Filings
  • Financial News Outlets
  • Analyst Reports

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual due diligence.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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
Full time employees 270300

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.