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IBM
IBMNYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-06-12
Intact
$272.24-0.95%
Close 2026-06-12 · 1-day change
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
The bottom line
Recent financial performance is neutral. Earnings quality is also neutral. Management's recent track record has been fairly steady. Risk is moderate, and the sector backdrop is a tailwind. Compared with sector peers, IBM is typical. Peer multiples imply a price about 123% below where it trades (it looks expensive on this basis); the read is rich. This is provisional.
as of 2026-06-12
Quick facts
- Exchange
- NYSE
- Sector
- Information Technology
- Industry
- Information Technology Services
- Market cap
- $260.81B
- Employees
- —
- IPO date
- 1911-06-16
- Next earnings
- 2026-07-22
Price
Daily closes. Earnings/event dots are placed inline.
Adjusted daily closes (split & dividend). Scroll over the chart to zoom; click a range to reset.
EarningsMaterial event
What's priced in
(what the market already expects)What it's worth (estimated)
A consensus fair price across 6 valuation methods, at three horizons. Current price $272.24. Estimates are diagnostics, not price targets. Short-horizon estimates are close to coin-flips, so confidence is a method-agreement read, not a prediction.
12-month· primaryexpensive
$117.17consensus
Range $96.48 – $119.42
vs price: +132% above
Method agreement — · 6 methods
No-growth: today's peer multiple on trailing earnings. The headline read.
3-yearexpensive
$147.17consensus
Range $113.78 – $155.94
vs price: +85% above
Method agreement — · 5 methods
Embeds projected growth. Leans optimistic by design. Upside context.
5-yearexpensive
How much to trust our fair value
We take the 12-month fair value above and grade our own number — how the market prices this name versus what we'd justify, and where the two diverge.
Durable premiumlow confidence
At $272 the market pays 23× p/e — above the 10× p/e peer median but in line with its own 19× history. That premium reflects a durable franchise our peer-anchored $118 fair value understates; treat the 'expensive vs peers' read with low confidence. Analysts: $215–$350. Not investment advice.
Multiple (P/E)
22.9x
peer 9.8x · own history 19.4x
Premium
2.3x peer
1.2x its own history
Growth the price needs
131%
our forecast 9%
Our fair value
$117.64
range $96.48 – $119.65
Analyst range(a guide on our number, not a target)Our number is below the analyst range
How this stock is priced
One valuation read at a 12-month horizon, plus how price compares to peers and the company's own history.
Long-term · 1–3 yr
expensiverich12-month view
What's priced inUnjustified
The market is pricing in roughly 131% near-term growth, well above our forecast of about 9%. This describes what's priced in, not a forecast of the move.
High fragilityrisk posture, not a price call
Flags: expensive valuation, weak execution quality, a turbulent sector regime (Heating).
Historical context
For similar setups historically (n=889): about 49% saw a 20%+ drawdown, and roughly 85% of those did not recover within the year. These are historical base rates for the cohort, not a forecast of this stock.
How strong is the business
(quality & execution)Factor signals
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Recent financial performance
neutralOperating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated neutral grew net income 54% of the time over the next year (vs 68% for the rest of the cohort, n=3704).
61st pctl · Information Technology
Earnings quality
neutralOver the trailing year it converted 1.30x of net income into operating cash flow. Historically, Information Technology names rated neutral grew net income 62% of the time over the next year (vs 58% for the rest of the cohort, n=2831).
32nd pctl · Information Technology
Macro sensitivity
Most sensitive to the broad stock market.
- the broad stock market: This stock moves with the broad market (high beta).
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity.
Management & capital allocation
neutralEarnings setup & market context
The next print and the backdrop around it (sector regime and the AI cycle). Context for the path, not a forecast of returns.
Earnings setup · pre-print positioning
forward-looking
Strongly bullish19 analysts, 57% Buyfor period ending 2026-06-30
Why this setup
Consensus revisions
EPS estimate $3.03 → $3.02 (-0.5% / 30d). 2 raised, 0 cut, 19 covering analysts.
Rating actions
0 upgrades, 0 downgrades / 30d, 2 maintained. 57% of analysts rate Buy.
Price target activity
3 PT revisions / 30d. Avg target 13.8% above current price.
Material events
0 positive, 0 negative / 30d.
Sector context
Intermediate · WeeklySector phase: information technology is in (~1.0 years in phase).
Management scorecard
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Long-term · 1–3 yr
Overall: neutral
- Capital allocation
- neutral
- Earnings discipline
- strong
- Margin discipline
- neutral
- Balance sheet
- neutral
- Post-call reaction
- weak
A guidance track record builds as the company issues and delivers on guidance.
as of 2026-06-12
How bumpy is the path
(risk while you hold it)Risk: how this stock moves
What a normal day, a bad day, and the worst of the last year would mean for a $10,000 position.
Intermediate · WeeklyLong-term · 1–3 yr
On a typical day, $10k can swing ±$156.
How much price usually moves either way.
On a bad day, this stock has moved -$324.
A rough but not unusual down day (about the 95th percentile).
In the worst 12 months, $10k could have lost $3,146.
Deepest peak-to-trough drop in the last year.
moderateas of 2026-06-12
Past results, not a forecast. Not investment advice.
What would change the read
(catalysts & re-read triggers)What changed
The most important moves since the prior daily snapshot.
Short-term · Daily
- No material changes since the prior snapshot.
No material changes since the prior snapshot.
as of 2026-06-12
What to watch next
Specific, dated things to watch for, each with what would confirm it and what would prove it wrong.
Intermediate · Weekly
- Either wayHigh confidenceMonthsactive 7d
Watch for IBM's next earnings date on July 22, 2026
Why it matters: Earnings results will provide insight into revenue growth and cash flow performance.
What confirms / what disproves
Confirms one read:Earnings report shows strong revenue growth and cash flow.
Confirms the other:Earnings report indicates weak revenue growth and cash flow.
Sector context
News catalysts
Recent news graded against this company's own objectives — whether it reinforces or challenges the thesis, and how confirmed it is.
- 2026-06-112d agoYahoo! Finance
Advances: Invest over $10B in quantum over 5 years
Significant investment aligns with quantum growth strategy.
Strongly reinforcesConfirmed
This sector is also watching
- Watch for revenue growth in Information Technology to fall below the median.
What could change this view
Conditional scenarios: if X happens, the view would shift in this direction. These are not predictions.
Intermediate · Weekly
Upside triggers
- If the Fed starts cutting rates from the current 3.62%, that would be a tailwind for IBM and other Tech names, since rate-sensitive parts of the market tend to rally when the Fed eases.
- If sector bellwethers like ACN, CTSH, and CDW keep beating earnings and guiding higher, the Tech sector momentum should keep lifting IBM and other Tech names. Worth watching these names for early signals.
- If IBM raises forward guidance on the next earnings call (currently NEW as of 2026-04-22), that's a momentum boost. Street estimates typically follow guidance up and the stock tends to re-rate higher.
Downside triggers
- If IBM cuts guidance on the next call (currently NEW as of 2026-04-22), that's a meaningful negative. The Street tends to walk down estimates and the stock usually takes a leg lower.
- If sector bellwethers like ACN, CTSH, and CDW start missing or guiding lower, the Tech tailwind helping IBM and other Tech names could fade. Watch these names for early warning.
Recent events
(material 8-K / filing activity)Material updates
Recent SEC 8-K filings ranked by likely impact, confidence, and recency.
- 2026-05-2816d agoItem 7.01
is being furnished with the Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, and includes the following information to be provided by senior management at investor meetings on May 28, 2026: • Over the next 5 years IBM plans to invest more than $10B to advance our leadership position in quantum, including in R&D, capex, ecosystem partnerships, manufacturing scaling, and M&A, which further enhances our confidence in delivering the fir…
Capital allocationneutral
Score history
Whether the overall read has been drifting up or down lately, and how it's changed since last week.
-1.5 vs last weeklatest as of 2026-06-13
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.