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International Business Machines Corporation (IBM)

Technology Out of favour

IBM is a long-standing technology giant that helps large businesses manage their data, cloud computing, and artificial intelligence systems.

$223.65

Is International Business Machines Corporation a good stock for a UK beginner?

The honest version: IBM is a long-standing technology giant that helps large businesses manage their data, cloud computing, and artificial intelligence systems.

No rating · no target price · nothing for sale here
Price+17.9%
Priced in USD - as a UK investor your £ return also moves with the pound-to-dollar exchange rate, on top of the share price itself.
52-week range-24% past year
$223.65
Low $199.19High $332.46
Where today's price sits versus its past year - context, not a signal.
If you had put $1,000 into International Business Machines Corporation
$1,179+18%

Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
$210.71B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
11.18M
Day range: The lowest and highest price the shares traded at during the latest day.
$216.59 – $224.76
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
$199.19 – $332.46
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
19.7
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
3.0%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
0.68
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 0.68
Calm
Wild
Steadier than most

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +2% past week · ▼ -24% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

IBM becomes a leader in enterprise AI

The bear case

Failure to adapt to changing tech landscapes

What does International Business Machines Corporation do?

IBM has evolved from its roots in hardware to focus on software and consulting, helping big companies modernise their digital infrastructure. Earnings flow from charging clients for cloud services, software subscriptions, and expert technical advice. How smoothly they integrate their artificial intelligence tools into existing business services will decide whether clients keep coming back.

VQGMI
Factor profile

On our factor screen it looks strongest on quality and income, and weakest on momentum.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 46Quality: How profitable and financially healthy the company is (higher = stronger). 57Growth: How fast revenue and earnings are growing (higher = faster). 20Momentum: How the share price has been trending recently (higher = stronger recent run). 14Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 57
Quick checks
What's strong
  • Strong profit margins showing efficient operations
  • Established reputation with large, loyal corporate clients
  • Consistent history of paying dividends to shareholders
What to watch
  • Growth screens low (20/100)
  • Momentum screens low (14/100)
  • Rapid changes in technology could make current services obsolete
  • Economic downturns often lead companies to cut their IT budgets
  • Dependence on large, complex contracts that take time to secure

What do International Business Machines Corporation's numbers mean?

P/E
25.7
This shows how much investors are currently paying for every pound of the company's annual profit.
Gross margin
58.4%
This indicates that for every pound of sales, the company keeps over 58 pence after paying for the direct costs of creating its products.
Dividend yield
2.4%
This is the annual cash payment the company gives to shareholders, expressed as a percentage of the current share price.
Beta
0.7
A number below 1 suggests the share price tends to be less jumpy than the wider stock market.

How much money does International Business Machines Corporation make?

Revenue and profit by quarter, and how much of each sale turns into profit.

RevenueNet income
$0$4.92B$9.84B$14.77B$19.69BQ2 25Q3 25Q4 25Q1 26Q2 26
Gross margin
58.1%
Net margin
15.5%
Return on equity
34.5%

Does International Business Machines Corporation pay a dividend?

Yes - International Business Machines Corporation currently pays a dividend of about 3.0% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.

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Appears in
Big tech stocks, explainedTechnology shares, explained

What are the scenarios for International Business Machines Corporation?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

$324$224$192today · $224▲ Bull · $240• Base · $224▼ Bear · $207in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+5% to +10%Strong demand for new AI consulting services
Base
-2% to +2%Steady performance in core software business
Bear
-5% to -10%Slower spending from corporate clients

What are the pros and cons of International Business Machines Corporation?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Strong profit margins showing efficient operations
  • Established reputation with large, loyal corporate clients
  • Consistent history of paying dividends to shareholders
The catch3
  • High price-to-book ratio suggests a premium valuation
  • Faces intense competition from younger, faster-moving tech firms
  • Legacy business segments can be slow to grow
Key risks3
  • Rapid changes in technology could make current services obsolete
  • Economic downturns often lead companies to cut their IT budgets
  • Dependence on large, complex contracts that take time to secure
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: USD · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.