International Business Machines Corporation

IBM

Information Technology Services · Technology

Also trades as: IBM.DE

Price

$237.28

+3.85 (+1.65%)

Market Cap

$223.55B

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 9, 2026 · filings through Jun 30, 2026

Share count rising — dilution

+4.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 904.6M (2021) → 948.7M (2025)

International Business Machines, known as IBM, helps large companies and governments run their technology systems. Its main products and services include cloud computing, artificial intelligence tools (sold under the Watson brand), and IT consulting through its subsidiary Kyndryl, which was spun off in 2021. IBM is one of the oldest and largest technology companies in the world, with roots going back to 1911.

IBM makes most of its money by charging businesses for software licenses, long-term consulting contracts, and cloud service subscriptions. It operates in over 170 countries and generates roughly $60 billion in annual revenue, with a large share coming from North America and Europe. IBM's main competitive advantage is its deep relationships with large enterprise clients, many of whom rely on IBM systems for critical operations and find it costly to switch. The key growth driver is its hybrid cloud and AI strategy, built partly around its 2019 acquisition of Red Hat, though IBM faces stiff competition from Microsoft, Amazon, and Google in those same markets.

Winston Score History

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+1.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-2.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$8.3B/ year

↑ Rising (+11% vs prior year)

12.3% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

0.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$10.2B cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

International Business Machines Corporation is growing revenue at 1% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

57.7%

Premium pricing power — 57.7% gross margin

Operating Margin

15.2%

Healthy — 15.2% operating margin

ROCE

2.7%

Weak — 2.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+7.9%

Steady sales growth (+7.9% YoY)

EPS YoY

+82.0%

Earnings growing fast (+82.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

139%

Turns 139% of profit into real cash

FCF Margin

18.2%

Converts sales into free cash efficiently (18.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

1.80

Elevated debt (1.80)

Interest Cover

6.40x

Adequate interest coverage (6.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

20.7x

Growth-priced — P/E 20.7

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+5.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (20.7 → 15.8)

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Dividends

Dividend Yield

2.97%

Moderate income — 2.97% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+0.6%

Dividend flat

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