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Earnings transcript
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IBM
International Business Machines Corporation
$230.93
-1
(-0.43%)
| Exchange: | NYSE |
| Market Cap: | 217.567B |
| Shares Outstanding: | 2.455B |
Delayed data
About The Company
| Sector: | TechnologyView sector performance | |||||
| Industry: | Information Technology ServicesView industry performance | |||||
| CEO: | Arvind Krishna | |||||
| Full Time Employees: | 264300 | |||||
| Address: |
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| Website: | https://www.ibm.com |
International Business Machines Corporation (IBM) delivers comprehensive technology solutions and services across the globe. The company’s operations are structured into four primary segments: Software, Consulting, Infrastructure, and Financing. The Software division provides hybrid cloud platforms and a range of software offerings, including Red Hat’s enterprise open-source solutions. It also develops software for business automation, AIOps and management, integration, and application servers, in addition to data and artificial intelligence tools. This segment further supplies security software and services for threat, data, and identity management, and offers critical transaction processing software that supports essential on-premise workloads for industries such as banking, airlines, and retail. The Consulting arm delivers business transformation services, which encompass strategy development, business process design and operational improvements, data and analytics insights, and system integration. It additionally provides technology consulting and specialized application and cloud platform services. IBM’s Infrastructure segment offers both on-premises and cloud-based server and storage solutions, specifically tailored for clients’ crucial and regulated operations. It also extends support and solutions for hybrid cloud infrastructure, alongside remanufacturing and remarketing services for used equipment. The Financing segment provides various financial services, such as leasing, installment payment plans, loan financing, and short-term working capital solutions. Originally established in 1911 as the Computing-Tabulating-Recording Co., the company is now known as International Business Machines Corporation and maintains its headquarters in Armonk, New York.
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Revenue Segmentation
IBM full analysis
Hey everyone, welcome back to MarketSnap. IBM is on a lot of watchlists right now, but before you pull the trigger, we're plugging it into MarketSnap's fair value calculator. Growth priced in? Margin of safety? Let's see. Here's the setup. IBM shares have been on a wild ride—down over seventeen percent in the last three months, but up nearly eighty percent over five years. The stock just went through a major drawdown after a product slowdown, and there's even a…
Industry Peers
| TICKER | COMPANY | MKT CAP | P/E | FWD P/E | ROIC |
|---|---|---|---|---|---|
| IBM | International Business Machines Corpor… | 217.6B | 20.0 | 18.8 | 10.4% |
 ACN | Accenture plc | 112.6B | 14.4 | 13.4 | 16.9% |
 INFY | Infosys Limited | 44.0B | 13.4 | 14.3 | 27.5% |
 CTSH | Cognizant Technology Solutions Corpora… | 26.5B | 12.8 | 10.5 | 12.3% |
 FISV | Fiserv, Inc. | 24.8B | 9.0 | 6.4 | 6.5% |
 BR | Broadridge Financial Solutions, Inc. | 19.0B | 16.8 | 17.3 | 13.4% |
EPS
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Earnings Call
AI summary
Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 61,860,000 | 62,753,000 | 67,536,000 |
| Gross Profit | 34,300,000 | 35,551,000 | 39,297,000 |
| EBITDA | 14,693,000 | 12,176,000 | 17,284,000 |
| Operating Income | 9,821,000 | 10,074,000 | 12,492,000 |
| Net Income | 7,502,000 | 6,023,000 | 10,593,000 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 135,241,000 | 137,175,000 | 151,880,000 |
| Total Liabilities | 112,628,000 | 109,782,000 | 119,140,000 |
| Total Stockholders Equity | 22,533,000 | 27,307,000 | 32,648,000 |
| Total Debt | 59,935,000 | 58,396,000 | 67,154,000 |
| Cash and Cash Equivalents | 13,068,000 | 13,947,000 | 13,641,000 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 13,931,000 | 13,445,000 | 13,193,000 |
| Capital Expenditure | -1,810,000 | -1,685,000 | 0 |
| Free Cash Flow | 12,121,000 | 11,760,000 | 13,193,000 |
| Net Income | 7,502,000 | 6,023,000 | 10,593,000 |
| Net Change in Cash | 5,101,000 | 1,071,000 | 0 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2030 | Research Access | Research Access | Research Access | Research Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 80,082,690.492 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (High) | 83,091,410.068 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (Avg) | 81,471,000 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Low) | 19,748,365.628 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (High) | 20,472,487.923 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Avg) | 20,082,500.170 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Low) | 11,651,705.724 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (High) | 12,223,762.337 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Avg) | 11,915,672.012 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Low) | 23,578,728.911 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (High) | 24,464,585.552 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Avg) | 23,987,488.573 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Avg) | 12.560 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (High) | 12.880 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Low) | 12.280 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated Revenue) | 7 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated EPS) | 2 | Research Access | Research Access | Research Access | Research Access |
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Current Key Metrics
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Login — it's freeSWOT Analysis
Strengths (preview)
- Robust Financial Performance: IBM demonstrates consistent revenue and net income as reflected in the Income Statements data, with positive trends in operating income and EPS over recent periods. This indicates a strong operational foundation and profitability, appealing to investors seeking stability.
- Strong Cash Flow Generation: The Cash Flow Statements highlight significant net cash provided by operating activities and positive free cash flow, showcasing IBM's ability to generate liquidity for reinvestment, debt servicing, and shareholder returns.
- High Dividend Yield: As per the Key Metrics data, IBM offers a competitive dividend yield (dividendYieldTTM), providing an attractive income stream for investors focused on wealth-building through dividends.
- Market Position and Scale: With a substantial market capitalization (mktCap) and a global presence indicated by Revenue Geo Segments, IBM maintains a strong foothold in the technology sector, supported by a large workforce (fullTimeEmployees) and diversified operations.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates IBM intrinsic value between $184.64 – $290.57 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
[intrinsic_calculator]
Common questions about IBM valuation
Is International Business Machines Corporation (IBM) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for International Business Machines Corporation (IBM) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is IBM a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether IBM trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is IBM’s P/E ratio?
You can see IBM’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for IBM?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is IBM a good long-term investment?
Whether IBM fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
IBM
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Daily snapshot
-0.43
Trading Metrics:
| Open: | 234.16 | Previous Close: | 231.93 | |
| Day Low: | 230.08 | Day High: | 236.2 | |
| Year Low: | 199.19 | Year High: | 332.46 | |
| Price Avg 50: | 231.08 | Price Avg 200: | 259.27 | |
| Volume: | 2.302M | Average Volume: | 9.488M |
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