International Business Machines (IBM)
What the price implies
A reverse DCF: instead of guessing a fair value, it asks what growth today's price already assumes. How it works.
At a market value of $215.4B, International Business Machines's free cash flow of $12.1B (fiscal 2025) would need to grow about 3% a year for the stock to be worth today's price. That is faster than the company has grown its free cash flow over the last 9 years.
Assumes a 9% discount rate and 3% growth after year 10, on free cash flow (operating cash flow minus capital spending) from International Business Machines's SEC filings. Change any assumption, or model revenue and margins instead, in the Modeling tab, or try your own numbers in the reverse DCF calculator.
Fundamental grade
Five factors scored 1 to 9 from IBM's latest numbers, weighted into one grade. It describes the business, not whether the stock is a buy.
Key numbers
Results from SEC filings
Fiscal years, from International Business Machines's 10-K filings. The deep dive has 15+ years, quarters and every line.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $57.4B | $60.5B | $61.9B | $62.8B | $67.5B |
| Net income | $5.7B | $1.6B | $7.5B | $6.0B | $10.6B |
| Free cash flow | $10.7B | $9.1B | $12.7B | $12.4B | $12.1B |
| EPS (diluted) | $6.35 | $1.80 | $8.14 | $6.43 | $11.17 |
| Operating margin | — | — | — | — | — |
Where the revenue comes from
Revenue by segments, fiscal 2025.
Superinvestors who own IBM
From each investor's latest 13F filing (what a 13F shows). 10 of the investors we track hold it.
| Investor | Last quarter | Value | % of portfolio | Quarter |
|---|---|---|---|---|
| Cliff Asness AQR Capital Management |
Added | $742M | 0.26% | Q2 2026 |
| Dodge & Cox Dodge & Cox |
Trimmed | $13M | 0.01% | Q2 2026 |
| Joel Greenblatt Gotham Asset Management |
Added | $11M | 0.03% | Q2 2026 |
| Hersh Cohen ClearBridge Investments |
Trimmed | $8M | 0.01% | Q2 2026 |
| Mario Gabelli GAMCO Investors |
Trimmed | $5M | 0.04% | Q2 2026 |
| Eric Marshall Hodges Capital Management |
Trimmed | $3M | 0.19% | Q2 2026 |
| Murray Stahl Horizon Kinetics LLC |
Trimmed | $1M | 0.01% | Q2 2026 |
| Boykin Curry Eagle Capital Management |
Held | $759,267 | 0.00% | Q2 2026 |
| Mark Boyar Boyar Asset Management |
Added | $603,282 | 0.35% | Q2 2026 |
| Thomas Kahn Kahn Brothers Group |
Held | $345,325 | 0.06% | Q2 2026 |
Insider buying
Open-market purchases by International Business Machines's executives and directors in the last 12 months, from SEC Form 4 filings. What insider buying tells you.
| Date | Insider | Shares | Price | Value |
|---|---|---|---|---|
| Mar 10, 2026 | Ro Khanna |
0 | $249.35 | — |
| Mar 10, 2026 | Ro Khanna |
0 | $249.35 | — |
| Mar 10, 2026 | Lloyd Doggett |
0 | $249.35 | — |
| Mar 10, 2026 | Lloyd Doggett |
0 | $249.35 | — |
| Feb 25, 2026 | Michelle J Howard |
50 | $237.83 | $11,892 |
| Feb 25, 2026 | Michael Miebach |
434 | $233.33 | $101,265 |
| Feb 24, 2026 | Ro Khanna |
0 | $229.34 | — |
| Feb 24, 2026 | Ro Khanna |
0 | $229.34 | — |
| Feb 2, 2026 | Julia Letlow |
0 | $314.56 | — |
| Feb 2, 2026 | Julia Letlow |
0 | $314.56 | — |
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In the full deep dive
Questions
What growth does International Business Machines's stock price imply?
At a market value of $215.4B, International Business Machines would need its free cash flow to grow about 3% a year for 10 years (discounted at 9%, 3% growth after that) to be worth today's price. Over the last 9 years its free cash flow grew -1% a year.
Are International Business Machines insiders buying the stock?
10 open-market insider purchases of IBM in the last 12 months, from SEC Form 4 filings.
Which superinvestors own International Business Machines?
10 of the superinvestors Investingly tracks hold IBM in their latest 13F, including Cliff Asness, Dodge & Cox, Joel Greenblatt.
Prices and ratios as of Oct 7, 2026; statements from SEC filings. Information only, not investment advice. Superinvestor holdings come from 13F filings, which are filed up to 45 days after each quarter ends.