International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry. The Infrastructure segment provides on-premises and cloud based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, facilitates IBM clients' acquisition of hardware, software, and services. The company has a strategic partnership to various companies including hyperscalers, service providers, global system integrators, and software and hardware vendors that includes Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.

IBM appears to be a mature, profitable company with strong profitability, but with a notable debt burden and a valuation that is not particularly cheap across several multiples. Its P/E ratio of 22.33 is below the industry median, which in itself supports the idea of moderate undervaluation on earnings; however, a P/S ratio of 3.47 and especially a P/B ratio of 6.88 are above industry benchmarks, which limits the potential for re-rating. The P/FCF ratio of 17.34 is below the median, which is positive and suggests a reasonable price relative to free cash flow, but this advantage is partly offset by the high valuation based on book value. The company’s profitability is strong: ROE of 35.44%, ROA of 7.07%, and ROI of 12.18% are above the median, and profit margins as well as operating margin are also noticeably better than the industry, confirming the quality of the business. At the same time, the overall margin trend is stable, without any clear deterioration, which is important for the sustainability of the valuation. Revenue, EBITDA, operating income, and net income remain positive and at a high level, but year-to-year volatility is visible rather than linear growth, so there is no basis for aggressively raising the target price. The balance sheet remains a weak point: debt/equity of 1.63 is significantly above the industry median, while a current ratio of 0.79 and a quick ratio of 0.74 indicate limited short-term liquidity. Long-term debt of around $56.2 billion and liabilities of over $117 billion versus cash on hand of $8.2 billion create financial leverage that increases sensitivity to a worsening business environment. Shareholders’ equity is growing, which mitigates the risks, but does not change the fact that the company is operating with a high debt load. The dividend yield in the current data does not provide any additional positive contribution, so the dividend factor is essentially neutral in this valuation. Overall, IBM’s fundamentals are strong in terms of profitability and efficiency, but not strong enough to justify a substantial increase in the target price. Given the high valuations on P/B and P/S, as well as weak liquidity and significant debt, the valuation adjustment should be moderately cautious.

International Business Machines Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Рынок не поддерживает быков.

Weak index, significantly down. The market does not support the bulls.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

IBM is profitable and generates returns, but its high debt burden and expensive P/B limit upside; the valuation looks rather moderately restrained.

Key Points
International Business Machines beat third-quarter expectations on both revenue and earnings, initially driving shares 7.3% higher in after-hours trading.
The stock reversed abruptly halfway through theearnings call dropping to a 4.6% after-hours loss around 5:35 p.m. ET.
CEO Arvind Krishna warned that corporate customers are growing concerned about the real returns on out-of-control AI spending.
If you glanced at a trading chart for International Business Machines (NYSE:IBM) on Wednesday evening, you could be forgiven for thinking someone knocked over a glass of water on the exchange's main server rack.
Big Blue put together an undeniable earnings win, enjoyed a brief bounce into after-hours euphoria, and then promptly fell off a cliff before dinner was even over.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Getty Images.
A picture-perfect quarter on paper
Big Blue delivered a clean performance across the board. Strong System Z sales helped, alongside rampant growth in several software categories. Revenue landed at $17.1 billion, topping consensus expectations of $16.8 billion, while adjusted earnings of $2.95 per share handily beat Wall Street's $2.86 estimate. The top-line figure was a 5.9% increase from the year-ago report while earnings jumped 11% higher.
Ergo, IBM grew sales while widening its profit margins. The stock jumped as much as 7.3% higher in the early after-hours trading.
But just as investors were getting comfortable with IBM's wins, the 5:00 p.m. ET conference call threw a spanner in the narrative. Instead of powering the usual market hype engine, CEO Arvind Krishna offered a surprisingly blunt assessment of enterprise software budgets.
The 5:35 p.m. reality check
The clear signal of AI market trouble landed around 5:35 p.m. ET. In response to an analyst probe on corporate IT budgets, Krishna candidly noted that corporate clients are "getting worried if some of the AI spending [is] completely out of control with no real return."
He added that real implementation requires extensive workflow reengineering: "It is not a little [robotic process automation] tool that you bolt on, and you get something."
IBM's stock plunged at that exact moment. Whee after-hours trading closed, the stock was down 4.ad.
A one-two punch for AI infrastructure
Granted, IBM wasn't working in a vacuum on Wednesday. Tesla (NASDAQ:TSLA) also reported earnings the same night, and Elon Musk's empire also cast a chill across extended trading with its own guidance. Tesla's forecast hinted at cooler data center capital expenditures, weighing on the company's energy business and spooking AI investors.
But Krishna's frank admission threw more fuel on the fire. Infrastructure heavyweights like Nvidia, Oracle, and CoreWeave didn't flinch during Krishna's spoken remarks, but they began bleeding red right around 6:00 p.m. ET -- the exact moment the call adjourned and automated transcript summaries landed in institutional inboxes.
When an industry titan tells you customers are balking at the bill for unproven tech, the rest of the market tends to listen. The reaction is even sharper when two titans issue similar warnings in unison.
Should you buy stock in International Business Machines right now?
Before you buy stock in International Business Machines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and International Business Machines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $370,440!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,330,110!*
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Anders Bylund has positions in International Business Machines and Nvidia. The Motley Fool has positions in and recommends International Business Machines, Nvidia, Oracle, and Tesla. The Motley Fool has a disclosure policy.

Big Blue's Wild Wednesday Ride: IBM Crushes Q3 Earnings, So Why Did the Stock Tank Mid-Call?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the State Street Technology Select Sector SPDR ETF (Symbol: XLK) where we have detected an approximate $444.6 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 657,311,794 to 659,661,794). Among the largest underlying components of XLK, in trading today International Business Machines Corp (Symbol: IBM) is off about 0.5%, Qualcomm Inc (Symbol: QCOM) is off about 1.2%, and Dell Technologies Inc (Symbol: DELL) is lower by about 2.3%. For a complete list of holdings, visit the XLK Holdings page » The chart below shows the one year price performance of XLK, versus its 200 day moving average:
Looking at the chart above, XLK's low point in its 52 week range is $126.68 per share, with $203.25 as the 52 week high point — that compares with a last trade of $186.30. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further XLK Research:

XLK, IBM, QCOM, DELL: Large Inflows Detected at ETF

Key Points
IBM is effectively funding its $10 billion, five‑year quantum push from its mainframe and software cash flows.
IonQ is the only pure‑play quantum computing company with meaningful revenue, but it's still burning a lot of cash and issuing a lot of new shares.
D‑Wave and Rigetti are leaning on secondary stock sales and government support.
Over the last few years, the development of quantum computing has mostly been bankrolled by stock sales and legacy cash flows, not by customers, and the latest quarterly filings from the biggest names in that race show just how wide that gap remains. For investors, the real question isn't which companies have the coolest qubits, but which ones have the financial capacity to stay afloat for the years it will take for their quantum computing revenues to start mattering.
Three numbers from the most recent quarter, straight from some quantum computing companies' own filings, show how far "someday" still is from "now."
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
IonQ (NYSE: IONQ) booked $80.1 million in revenue for the second quarter. D-Wave Quantum (NASDAQ: QBTS) booked around $3 million. Rigetti Computing (NASDAQ: RGTI) booked $5.1 million. None of those revenue figures covered the millions the companies spend annually on hardware. So, for investors interested in this niche of the tech sector, the real question is which quantum computing stock is closest to running on revenue rather than on the next stock or debt sale.
Revenue today: IBM and IonQ
IBM (NYSE: IBM) doesnt reportits quantum computing revenue separately, and that tells you most of what you need to know: Within the multibillion-dollar business that is IBM, the quantum computing operation still amounts to a rounding error. What IBM has instead is scale and patience. It runs 13 utility-scale quantum computing systems (100-plus qubits each), has booked more than $1 billion in cumulative quantum business, and is putting $10 billion behind its efforts to develop the technology over five years. But that effort is funded by the tens of billions of dollars in free cash flow its mainframes and software throw off every year. CEO Arvind Krishna said in a July interview on CNBC that quantum computing won't move the profit needle for his company until 2028 or 2029. But IBM can wait that long.
IonQ doesn't have that luxury, but it's the one pure play in the space that's booking real revenue: $144.7 million in the first half of 2026, up from $28.3 million in the prior-year period. So what does that growth cost? The headline quarterly loss was $1.87 billion, though $1.65 billion of that was a noncash charge from revaluing warrants. The number that matters more is operating cash burn: $254.8 million over six months, nearly triple the $85.6 million it burned in the first half of 2025. IonQ had $3 billion in cash and investments on its books as of June 30, or about $2 billion once its recent SkyWater acquisition is paid for. That gives it a few years of runway at this pace, not a few quarters. But the bill is being paid in shares: The weighted average count of shares outstanding jumped by 47% year over year, from 251 million to 368 million. Each shareholder now owns a noticeably smaller piece of the company than they did a year ago.
Revenue soon, and what "soon" costs: D-Wave and Rigetti
D-Wave and Rigetti are smaller and earlier -- and their own numbers show exactly how early. D-Wave's second-quarter revenue was flat at $3.1 million, but bookings (signed orders not yet counted as revenue) hit $35.5 million for the first half of 2026, up over 1,120% from a year earlier. D-Wave says commercial customers made up 67.7% of its revenue in the first half of 2026, up sharply from 16% a year earlier. But within its cloud business specifically, only 37.3% of revenue came from production use; the rest came from pilot projects and testing, a reminder that "commercial" doesn't necessarily mean "in production" yet.
Its cash cushion stood at $546.2 million as of June 30, down $273.1 million from a year ago, primarily due to cash paid for its Quantum Circuits acquisition, not to operating losses. D-Wave has leaned heavily on at-the-market stock sales to fund that gap, under a standing arrangement that lets the company sell new shares straight into the market whenever it needs cash. That keeps it funded, but steadily reduces the value of each existing share.
Rigetti's story is similar. Quarterly revenue rose to $5.1 million from $1.8 million a year earlier, and it holds roughly $541 million in cash with no debt. But it has also been issuing new stock through repeated at-the-market offerings, so like D-Wave, it isn't paying the bills with customer sales yet; it's buying time with equity.
The enablers: Google and Nvidia aren't selling quantum yet
Alphabet and Nvidia are excluded from this scorecard because neither sells quantum computers as a business line today. Alphabet's Willow chip has achieved some impressive test results, but access to it outside the company is still limited to select researchers, per The Quantum Insider. Nvidia isn't building qubits at all. It's focusing its efforts instead on providing key support systems -- chiefly NVQLink, a system that connects quantum processors to Nvidia's GPUs; and CUDA-Q, the software platform that allows unified programs to be run across hardware that combines quantum and classical processors.
More than a dozen supercomputing centers and 17 quantum hardware makers have adopted NVQLink, but Nvidia doesn't break out what that's worth, because right now, it probably isn't much.
Both Alphabet and Nvidia are positioned to profit once quantum computing works at commercial scale. Neither offers proof that it does yet.
So, what does all this mean for quantum computing investors? IBM has the balance sheet to fund a long wait. IonQ has real, fast-growing revenue, but it bought those sales with heavy cash burn and serious dilution. D-Wave and Rigetti have promising bookings, but their revenues are still tiny next to their cash burns, and they're covering the gap by printing new shares. Alphabet and Nvidia are well positioned bystanders, not yet quantum revenue stories. In my opinion, the numbers favor IBM for balance sheet durability, IonQ for actual commercial traction, and perhaps Nvidia if it lets investors look into its quantum operations over the next couple of years.
Should you buy stock in International Business Machines right now?
Before you buy stock in International Business Machines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and International Business Machines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $391,581!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,780!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 16, 2026.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, International Business Machines, IonQ, and Nvidia. The Motley Fool has a disclosure policy.

Quantum Computing Is Still Years Away. These 6 Stocks Show Who Is Closest to Real Revenue.

The S&P 500 Index ($SPX) (SPY) is down by -0.57% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.30%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.71%. December E-mini S&P futures (ESZ26) are down -0.58%, and December E-mini Nasdaq futures (NQZ26) are down -1.54%.
Stock indexes are mostly lower today, with the S&P 500 falling to a 2-week low and the Nasdaq 100 dropping to a 3.5-week low. The broader market is under pressure today as the rout in chipmakers and AI-infrastructure stocks spreads globally, with South Korea’s Kospi Index sinking more than -7% and China’s Shanghai Composite falling to a 14-month low. Today’s drop in chipmakers followed Anthropic PBC's disclosure of $16.8 billion in Q3 growth to prospective investors, figures that suggest growth has slowed even as it remains robust.
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Stocks extended their losses today on rising US producer price pressures after the Sep PPI final demand rose +6.3% y/y, stronger than expectations of +5.4% y/y and the most in 3.75 years. Also, Sep PPI ex-food and energy rose +5.0% y/y, stronger than expectations of +4.4% y/y and the most in more than 3.5 years.
Other US economic news today was mixed, with Sep retail sales and the Oct Empire manufacturing survey rising more than expected and weekly jobless claims near expectations. However, the Oct Philadelphia Fed business outlook survey fell more than expected.
On the positive side, the slump in global equity markets has sparked a rally in government bond markets, knocking yields lower. The 10-year German Bund yield fell to a 5-week low today of 3.35%, and the 10-year T-note yield fell to a 3-week low of 5.04%. Also, investors rotating out of chip stocks into software companies and defensive pharmaceuticals stocks are lifting the Dow Jones Industrials.
US weekly initial unemployment claims rose by +1,000 to 199,000, close to expectations of 200,000.
US Sep retail sales rose +0.8% m/m, stronger than expectations of +0.3% m/m, and Sep retail sales ex-autos rose+0.9% m/m, stronger than expectations of +0.5% m/m.
The US Oct Philadelphia Fed business outlook survey fell by -16.9 to 20.9, weaker than expectations of 28.0.
The US Oct Empire manufacturing survey of general business conditions rose +17.9 to a 4.75-year high of 25.5, stronger than expectations of 12.0.
Stocks and bonds got some support today after San Francisco Fed President Mary Daly said she thinks rate hikes are likely needed, just not immediately, and that she would hold interest rates steady at the October 27-28 FOMC meeting.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of today, 32 of the S&P 500 companies have reported results, with 78% beating estimates.
Nov WTI crude oil prices (CLX26) are up +0.20% today. Crude prices are supported by risks to global oil supplies as Yemen's Houthi rebels continue drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East. However, today’s selloff in global equity markets is curbing demand for risk assets, including crude.
Markets are discounting a 29% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are lower today. The Euro Stoxx 50 is down -0.62%. China's Shanghai Composite fell to a 14-month low and closed down -1.59%. Japan's Nikkei-225 Stock Average dropped to a 4-week low and closed down sharply by -4.90%.
Interest Rates
December 10-year T-notes (ZNZ6) are up by +23 ticks today. The 10-year T-note yield is down -12.5 bp to 5.060%. Dec T-notes rallied to a 3-week high today, and the 10-year T-note yield fell to a 3-week low of 5.041%. Today’s selloff in global equity markets has boosted safe-haven demand for T-notes. Also, dovish comments from San Francisco Fed President Mary Daly were bullish for T-notes when she suggested she would support holding interest rates steady at the October 27-28 FOMC meeting.
Hawkish US economic news is limiting gains in T-notes after US Sep producer prices and Sep retail sales rose more than expected, and the Oct Empire manufacturing survey's general business conditions rose to a 4.75-year high.
European government bond yields are moving lower today. The 10-year German bund yield fell to a 5-week low of 3.353% and is down -10.7 bp to 3.359%. The 10-year UK gilt yield fell to a 1.5-week low of 5.301% and is down -11.3 bp to 5.312%.
Eurozone Aug industrial production fell -0.5% m/m, weaker than expectations of no change and the biggest decline in 7 months.
ECB Governing Council member Martins Kazaks said the ECB can afford to take its time adjusting interest rates, despite persistent energy price rises that are set to keep consumer price growth elevated, as the recent surge in government bond yields may start to weigh on economic activity.
UK Aug manufacturing production rose +1.2% m/m, stronger than expectations of no change and the largest increase in 9 months.
Markets are discounting an 11% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks are falling today on demand concerns after Anthropic disclosed Q3 revenue growth that likely slowed from the previous quarter. The iShares Semiconductor ETF (SOXX) is down more than -3% at a 1-month low. SanDisk (SNDK) and Seagate Technology Holdings Plc (STX) are down more than -7%, and Intel (INTC), Lam Research (LRCX), and Western Digital (WDC) are down more than -6%. Also, Advanced Micro Devices (AMD), Applied Materials (APLD), and Marvell Technology (MRVL) are down more than -5%, and KLA Corp (KLAC) and Micron Technology (MU) are down more than -4%.
Cryptocurrency-exposed stocks are falling today, with Bitcoin (^BTCUSD) down more than -2% at a 3.5-week low. Iren Ltd (IREN) is down more than -10%, and Galaxy Digital Holdings (GLXY) and Riot Platforms (RIOT) are down more than -8%. Also, MARA Holdings (MARA) and BitMine Immersion Technologies (BMNR) are down more than -6%, and Robinhood Markets (HOOD) and Strategy (MSTR) are down more than -5%. In addition, Coinbase Global (COIN) is down more than -3%, and Circle Internet Group (CRCL) and Bullish (BLSH) are down more than -2%.
Cloud infrastructure stocks are under pressure today on debt concerns after credit-default swaps have priced in a more than 50% chance that CoreWeave could default on its debt within the next five years. Nebius Group NV (NBIS) and Lumentum Holdings (LITE) are down more than -8%, and CoreWeave (CRWV) is down more than -6%. Also, Arista Networks (ANET) and Applied Digital (APLD) are down more than -5%.
Software stocks are climbing today as investors rotate out of chip stocks into software. Intuit (INTU) is up more than +5% to lead gainers in the Nasdaq 100, and Autodesk (ADSK) is up more than +4%. Also, Workday (WDAY) and Adobe Systems (ADBE) are up more than +3%, and Salesforce (CRM) and Thomson Reuters (TRI) are up more than +2%. In addition, IBM (IBM) and ServiceNow (NOW) are up more than +1%.
Defensive pharmaceutical stocks are climbing today amid the broader market slump. Amgen (AMGN), Eli Lilly (LLY), Gilead Sciences (GILD), and Vertex Pharmaceuticals (VRTX) are up more than +3%, and Biogen (BIIB), Merck & Co (MRK), Alnylam Pharmaceuticals (ALNY), and Regeneron Pharmaceuticals (REGN) are up more than +2%. Also, Pfizer (PFE) is up more than +1%.
FMC Corp (FMC) is down more than -34% after cutting its Q3 adjusted Ebitda forecast to a loss of -$510 million to -$565 million, after previously expecting a profit of$120 million to $140 million.
Rocket Lab (RKLB) is down more than -13% to lead losers in the Nasdaq 100 after announcing that it will delay the launch of its inaugural Neutron medium-lift rocket until sometime in 2027.
Penske Automotive Group (PAG) is up more than +8% after entering a deal to be taken private for $212 a share in cash by Penske Corporation and Mitsui.
International Paper (IP) is up more than +5% to lead gainers in the S&P 500 after the Financial Times reported private equity firms Lone Star and Atlas Holdings are exploring bids to acquire the company.
Walmart (WMT) is up more than +3% after Deutsche Bank upgraded the stock to buy from hold with a price target of $136.
Kimberly-Clark (KMB) is up more than +3% after reporting preliminary Q3 net sales of $4.13 billion, above the consensus of $4.10 billion.
Commercial Metals (CMC) is up more than +2% after reporting Q4 net sales of $2.66 billion, better than the consensus of $2.54 billion.
Earnings Reports (10/15/2026)
Alcoa Corp (AA), Bank of New York Mellon Corp/The (BNY), Charles Schwab Corp/The (SCHW), First Horizon Corp (FHN), Interactive Brokers Group Inc (IBKR), JB Hunt Transport Services Inc (JBHT), Marsh & McLennan Cos Inc (MRSH), PNC Financial Services Group Inc (PNC), Prologis Inc (PLD), US Bancorp (USB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Pressured as Chipmaker Selloff Deepens

Key Points
Arista Networks maintains a dominant position in the high-speed Ethernet switching market for cloud and artificial intelligence infrastructure.
International Business Machines provides a diversified revenue stream through enterprise software, hybrid cloud consulting, and strategic partnerships.
Should you invest in the networking growth of Arista Networks or the diversified stability of IBM?
Choosing between Arista Networks (NYSE:ANET) and International Business Machines (NYSE:IBM) in 2026 requires balancing high-octane infrastructure demand with stable, diversified software and consulting services amid an evolving technology landscape.
Arista Networks specializes in high-speed switches for massive data centers, while International Business Machines focuses on hybrid cloud and AI platforms. Both benefit from the artificial intelligence boom, but they offer different financial profiles. One is a high-growth hardware leader, whereas the other is a legacy giant undergoing a steady transformation.
The case for Arista Networks
Arista Networks designs networking products for cloud titans and enterprise data centers. Its focus on "Scale Up" and "Scale Out" networking helps customers meet the high data demands of artificial intelligence clusters. Large purchases by a limited number of customers continue to account for a substantial share of revenue, and such customer concentration adds a layer of risk to the business.
In FY 2025, revenue reached nearly $9.0 billion, which was an increase of approximately 28.6% over the previous year. Net income for the period was close to $3.5 billion, representing a net margin of roughly 39%. This growth reflects strong demand for the company's 800G switching products in the tech stocks landscape.
As of its December 2025 balance sheet, the company maintained a debt-to-equity ratio of 0.0x, indicating it holds no debt relative to its shareholder equity. The current ratio, which evaluates the ability to cover short-term debts with current assets, was a robust 3.0x. For FY 2025, free cash flow (the cash remaining after operations and capital investments) reached approximately $4.3 billion.
The case for International Business Machines
International Business Machines provides a mix of software, consulting, and infrastructure services with a heavy focus on hybrid cloud platforms. It often partners with other leaders, such as Microsoft (NASDAQ:MSFT) and SAP (NYSE:SAP), to facilitate digital transformations for global enterprises. In October 2026, the company launched a collaboration with Zscaler (NASDAQ:ZS)and its subsidiary, Red Hat, to modernize private application protection.
In FY 2025, revenue reached nearly $67.5 billion, an increase of approximately 7.6% over the previous 12 months. Net income for the year was close to $10.6 billion, resulting in a net margin of roughly 15.7%. While its growth rate is lower than that of smaller networking firms, the massive scale of its consulting and software segments provides a diversified revenue base.
According to its December 2025 balance sheet, the debt-to-equity ratio for International Business Machines was approximately 2.1x, meaning its total debt is more than double its shareholder equity. The current ratio was roughly 0.9x, suggesting that its current assets are slightly lower than its current liabilities. During FY 2025, the company generated nearly $12.1 billion in free cash flow, the cash a business produces after paying for its operations and equipment.
Risk profile comparison
Arista Networks faces significant risks due to its reliance on a small group of large customers whose spending can fluctuate. It also depends heavily on Broadcom (NASDAQ:AVGO) for the chips used in its switches, creating a sole-source supply chain vulnerability. Competition remains fierce from established players like Nvidia (NASDAQ:NVDA) and Hewlett Packard Enterprise (NYSE:HPE), which are also vying for dominance in infrastructure.
International Business Machines must navigate a highly competitiveglobal market facing pressure from both large incumbents and niche start-ups. The company faces ongoing cybersecurity threats that could compromise its sensitive data handling or its client trust. Furthermore, its long-term success hinges on the effective commercialization of artificial intelligence, as any failure to scale these innovations could hinder its ability to keep pace with rivals such as Microsoft and Amazon (NASDAQ:AMZN).
Valuation comparison
Arista Networks carries a significantly higher valuation than International Business Machines on both Forward P/E and P/S ratio metrics.
Metric
Arista Networks
International Business Machines
Forward P/E
52.7x
18.4x
P/S ratio
25.9x
3.1x
Valuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
Which stock would I buy in 2026?
When comparing Arista Networks and International Business Machines, investors should consider a few key factors. Let's have a look at them and see what that tells us about each stock.
To start, there's growth. In this respect, Arista Networks has a clear lead. Arista has averaged 33% revenue growth over the last five years. IBM, on the other hand, has averaged 4% revenue growth over the same period. Moreover, in recent quarters, the advantage has grown even larger. Arista recently reported revenue growth of nearly 38%, while IBM's revenue growth retreated to around 1%.
Another factor to consider is each company's profitability. Again, Arista can claim a decent edge over IBM. Arista's current operating margin stands at 43%, while IBM's is around 21%. Much of this difference comes down to the companies' differing business models. Arista is largely an asset-light model. The company outsources capital-intensive activities such as manufacturing, focusing instead on selling switches and proprietary software to cloud giants. IBM, on the other hand, is a multi-layered conglomerate with lower-margin businesses like consulting and mainframe mixed among higher-margin businesses like cloud software (Red Hat).
Last, there's valuation. Here, IBM shines. Its forward price-to-earnings (P/E) multiple stands at 18x, which is well below Arista's 53x multiple.
In summary, Arista and IBM are quite different companies and stocks. Ultimately, Arista holds more appeal for me, given its faster growth and wider profit margins. However, value-oriented investors may see things differently, given IBM's far-lower valuation multiple.
Should you buy stock in Arista Networks right now?
Before you buy stock in Arista Networks, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arista Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,795!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,390,634!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 13, 2026.
Jake Lerch has positions in Amazon, International Business Machines, and Nvidia. The Motley Fool has positions in and recommends Amazon, Arista Networks, Broadcom, Hewlett Packard Enterprise, International Business Machines, Microsoft, Nvidia, and Zscaler. The Motley Fool recommends SAP. The Motley Fool has a disclosure policy.

Arista Networks vs. International Business Machines: Which Technology Stock Is a Better Buy in 2026?

Key Points
Quantinuum, backed by Honeywell's continued majority-voting stake, is still working through post-IPO price discovery following its June Nasdaq debut.
IBM's quantum bet is funded by its much larger, profitable core business, giving it a longer runway than smaller pure-play competitors.
Nvidia's NVQLink platform is being adopted across nearly the entire quantum industry, letting it benefit from the sector's growth regardless of which specific technology wins.
IonQ (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI) get most of the attention whenever quantum computing comes up, largely because they were among the first to go public and have spent years building retail investor followings.
But the businesses I'd actually want exposure to this month aren't the loudest names in the room. These three are either newer to the public markets, backed by a much larger parent, or positioned to win no matter which quantum approach eventually comes out on top. Some of these tickers are typically correlated with something completely different from quantum computing, but they are making moves that are hard to ignore.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. Quantinuum: The newly public heavyweight with Honeywell's backing
Quantinuum (NASDAQ: QNT) made its Nasdaq debut in June, spun out of Honeywell International (NASDAQ: HON), combining decades of industrial engineering expertise with Cambridge Quantum's software expertise.
That lineage matters more than one might think. Quantinuum builds its quantum computers around trapped-ion technology, an approach that's generally regarded as producing cleaner, lower-error qubits than some rival methods, which matters enormously in a field where error correction is the single biggest obstacle to doing anything commercially useful. In other words, fewer mistakes per calculation mean Quantinuum incurs less computational overhead just to clean up after its own errors, which is the main thing standing between quantum computers and doing real, useful work today.
Honeywell retained roughly 48% of the voting power after the IPO, per CNBC, which tells me the industrial giant isn't walking away from this bet; it's still deeply invested in seeing it through.
What makes Quantinuum compelling to me right now is the timing. Freshly public stocks in a hyped sector often see real price discovery happen over their first several months of trading, as analysts initiate coverage and institutional investors build positions they couldn't touch during the IPO quiet period. That process is still playing out for Quantinuum, and I'd rather be positioned for it than watch from the sidelines.
2. IBM: The deep-pocketed incumbent betting on a 2029 breakthrough
IBM (NYSE: IBM) isn't a pure-play quantum stock, and that's exactly the point. IBM committed more than $10 billion to its quantum roadmap, funding a path from today's systems through to what it's calling the world's first large-scale, fault-tolerant quantum computer, targeted for 2029.
In August, IBM hit an engineering milestone, successfully connecting its first modular cryogenic systems, the refrigeration architecture needed to eventually link hundreds of quantum chips together into one far more powerful machine. IBM has also outlined specific hardware checkpoints along the way, including a multichip processor designed to combine thousands of qubits into a single working system within the next couple of years, per Quantum Insider.
The appeal here for me is straightforward: IBM doesn't need quantum computing to work tomorrow to keep funding this effort, because the rest of its business, such as software, consulting, and mainframes, keeps generating the cash to bankroll a decade-long science project. That's a very different risk profile than betting on a smaller company that needs quantum revenue to materialize just to keep the lights on.
3. Nvidia: The pick-and-shovel play that wins regardless of who's right
Nvidia (NASDAQ: NVDA) doesn't build quantum processors, and that's precisely why I think it deserves a spot here.
Nvidia built NVQLink, a technology that connects quantum processors directly to its GPU-powered supercomputers, enabling classical and quantum computing to work together in real time. At Nvidia's GTC conference this year, that technology went live for developers, and the list of companies building on top of it reads like a who's who of the quantum industry: IonQ is installing hardware at Nvidia's own research center, while other companies and government labs, including Pacific Northwest National Laboratory, have all announced integrations or are using the tech.
The bigger picture
In my opinion, quantum computing stocks tend to move in waves tied to conference season and fresh funding news, and fall brings both: Nvidia's GTC's momentum is still fresh, Quantinuum's post-IPO positioning is still shaking out, and IBM's cryogenic milestone just hit headlines in the last couple of months. I'd rather be positioned now across a newly public pure-play, a deep-pocketed incumbent, and an infrastructure layer that profits either way, than concentrated in the two names everyone already knows.
Should you buy stock in Quantinuum right now?
Before you buy stock in Quantinuum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Quantinuum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 11, 2026.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Honeywell Technologies, International Business Machines, IonQ, and Nvidia. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.

3 Quantum Computing Stocks Poised to Outperform IonQ and Rigetti This Month

(RTTNews) - International Business Machines Corp. (IBM) on Wednesday announced a partnership with German enterprise applications and solutions major SAP SE (SAP) to help companies update their business systems, move to the cloud ERP and to use AI through IBM Ready for SAP Solutions.
The solution brings together IBM's industry expertise, SAP technologies and AI-powered consulting tools to help midsize and fast-growing companies move to SAP Cloud ERP while updating their core business systems.
IBM Ready for SAP Solutions is currently available in limited countries and for specific industries, with plans to expand the offering to additional industries and markets globally.
The solution is already being used by Volumetric Building Companies and Second Nature Brands.
Volumetric Building Companies, a modular construction company, completed a three-month SAP Cloud ERP transformation with IBM and reduced operational cycle times by 50% across purchasing, manufacturing and inventory processes.
Further, Second Nature Brands, a portfolio company, used the solution to integrate its acquired Voortman Bakery business and establish a common enterprise platform across its operations.
According to research from the IBM Institute for Business Value, 68% of enterprises consider faster ERP modernization important to improve operational efficiency and competitiveness.
In premarket activity on the New York Stock Exchange, the shares of IBM were trading 96 cents or 0.43 percent higher at $222.28, while the shares of SAP were trading 213 cents or 1.01 percent lower at $208.44.

IBM, SAP Launch Solution To Support Business Modernization, AI-readiness

Key Points
IonQ's reliability and partnership with Nvidia may make it a good investment.
D-Wave's success at finding real-world applications for quantum technology could make it a compelling choice.
Quantum computing has gained increasing attention in recent years. Amid the technology's potential for exponentially faster computing, companies like Alphabet, IBM, and Nvidia have taken an interest in it.
Additionally, many smaller, pure-play quantum computing stocks have emerged, and two of the more prominent ones are IonQ (NYSE: IONQ) and D-Wave Quantum (NASDAQ: QBTS).
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Although these stocks carry significant risks, their smaller sizes also offer greater potential for higher returns should they succeed. Thus, it is worth asking which of these stocks might be the better stock to buy.
The case for IonQ
One limitation of quantum computing is that the technology is often error-prone. This means any company that can minimize that problem has a better chance of success, and IonQ may have the solution with its trapped-ion quantum system.
Last year, IonQ demonstrated 2-qubit gate fidelities of 99.99%. This technology unlocked more complex applications that could now be performed with minimal error rates. While that does not make it faster than its big-tech counterparts, it performs tasks with industry-leading precision.
Furthermore, the company, often called the "Nvidia of quantum," has formed a partnership with that company. Under the terms of the agreement, Nvidia will install the IonQ Superion 256 system at the Nvidia Accelerated Quantum Research Center. This will tie IonQ into Nvidia's ecosystem, which could give it a competitive advantage.
Unfortunately, such gains may not yet provide sufficient support for its financials. Its $145 million in revenue in the first half of 2026 was well above the $28 million in the same period a year ago, indicating it is growing faster than Nvidia. However, high operating expenses led to a $1.06 billion operating loss in the first two quarters of 2026, well above the $210 million loss from the same time frame last year.
Moreover, IonQ stock is down by more than one-third over the last year. Despite that decline, it still has a price-to-sales (P/S) ratio of around 65, an indication that the company's fundamentals have little bearing on the stock price. Such a valuation makes it extremely difficult to forecast IonQ's near-term direction at this time.
Why investors might consider D-Wave Quantum
Nonetheless, investors might also find challenges amid the potential in D-Wave Quantum. In an industry where some have predicted commercial viability is years away, Leap's quantum cloud service already runs customer applications.
Additionally, it has become a leader in optimization, as its quantum annealing technology helps find solutions while analyzing millions of variables. For example, AT&T cut a one-hour task down to less than 15 seconds using this application.
Thus, it is likely not surprising that companies use its technology to retrain AI models, generate molecular structures, and lower energy consumption.
However, much like with IonQ, D-Wave Quantum is far from profitability. In the first half of 2026, revenue of $5.9 million fell 67% year over year, though a large system sale in early 2025 skewed these results. Also, high operating expenses led to a $66 million loss for the same period.
Amid that financial performance, the stock dropped by almost 40% over the last year. Furthermore, at a P/S ratio of approximately 475, the stock's valuation factors in several years of anticipated revenue gains, making the stock a risky buy at this time.
Should investors buy IonQ or D-Wave Quantum?
As conditions stand now, both stocks face deep uncertainty in the foreseeable future, and risk-averse investors should probably avoid both of them. Nonetheless, if choosing one, I recommend IonQ.
Although D-Wave's success at applying the technology now is noteworthy, one cannot deny IonQ's built-in credibility that comes with its Nvidia partnership.
Moreover, while both are too expensive, it is less risky to pay around 65 times sales than it is to buy at a P/S ratio of around 475. Thus, amid significant uncertainty, IonQ looks like the safer buy that offers a higher probability of success.
Should you buy stock in IonQ right now?
Before you buy stock in IonQ, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $375,240!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,403,292!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 1, 2026.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, International Business Machines, IonQ, and Nvidia. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Better Quantum Computing Stock: IonQ vs. D-Wave

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Expanded Tech Sector ETF (Symbol: IGM) where we have detected an approximate $276.7 million dollar inflow -- that's a 2.5% increase week over week in outstanding units (from 65,950,000 to 67,600,000). Among the largest underlying components of IGM, in trading today KLA Corp (Symbol: KLAC) is up about 4.2%, International Business Machines Corp (Symbol: IBM) is up about 1%, and Arista Networks Inc (Symbol: ANET) is lower by about 0.8%. For a complete list of holdings, visit the IGM Holdings page » The chart below shows the one year price performance of IGM, versus its 200 day moving average:
Looking at the chart above, IGM's low point in its 52 week range is $112.60 per share, with $171.48 as the 52 week high point — that compares with a last trade of $168.97. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IGM Research:

Noteworthy ETF Inflows: IGM, KLAC, IBM, ANET

Key Points
Arista Networks dominates the high-speed networking market for artificial intelligence data centers and cloud titans.
International Business Machines has successfully pivoted toward high-margin hybrid cloud software and consulting services.
Which tech stock offers the best balance of growth and stability for your portfolio in 2026?
Choosing between a high-growth networking specialist and a legacy technology giant depends on your specific financial objectives. Should you buy Arista Networks (NYSE:ANET) or International Business Machines (NYSE:IBM) for your portfolio?
Arista Networks focuses on high-speed hardware for the world's largest data centers, while International Business Machines has transformed into a hybrid cloud and artificial intelligence (AI) leader. Comparing these two reveals a classic trade-off between aggressive expansion in AI infrastructure and the steady, cash-generative stability of established enterprise software.
The case for Arista Networks
Arista Networks designs client-to-cloud networking products used in massive data centers. The company serves a diverse group, including specialty cloud providers and financial institutions, but its growth is heavily tied to cloud titans. Customer concentration like this adds a layer of risk to the business, as two specific end customers accounted for roughly 16% and 26% of total revenue in 2025.
In 2025, revenue reached nearly $9 billion, representing approximately 29% growth over the prior year. The company reported net income of close to $3.5 billion for the period. This resulted in a net margin of 39%, which measures the percentage of revenue remaining as profit after all expenses are paid.
The company has a healthy balance sheet, with a debt-to-equity ratio of 0.0x, indicating it has no debt relative to its shareholders' equity.
The current ratio, which measures the ability to cover short-term liabilities with short-term assets, was roughly 3x.
Trailing-12-month (TTM) free cash flow through the second quarter of 2026 was approximately $5.2 billion, representing the cash generated after accounting for cash used to support operations and maintain capital assets.
The case for International Business Machines
International Business Machines provides a wide range of software, consulting, and infrastructure solutions with a focus on hybrid cloud and artificial intelligence. The company operates in more than 170 countries and partners with tech companies like Adobe and Microsoft to deliver enterprise solutions. Its business model relies on deeply integrated relationships with large global organizations and government entities.
In 2025, revenue reached approximately $67.5 billion, representing growth of nearly 7.6% compared to the previous year. The company reported net income of roughly $10.6 billion for the same period. This led to a net margin of approximately 15.7% for the fiscal year.
As of the second quarter, its debt-to-equity ratio is 1.9x, which compares total debt to shareholder equity. The current ratio was approximately 0.8x, indicating that short-term liabilities slightly exceed short-term assets.
TTM free cash flow through Q2 2026 reached nearly $13.8 billion, providing significant capital for dividends and reinvestment.
Risk profile comparison
Arista Networks faces risks from its heavy reliance on a small number of large customers, which can lead to volatile quarterly results. The company is also vulnerable to supply chain issues in the semiconductor industry, as well as to competition from established networking providers like Cisco and Nvidia.
International Business Machines must navigate a highly competitive hybrid cloud market while managing cybersecurity and data protection threats. The company also faces risks related to its pension obligations and the integration of new acquisitions, such as Logiq Consulting. Geopolitical tensions and currency fluctuations can also impact its global revenue streams across the numerous countries where it operates.
Valuation comparison
Arista Networks trades at a significantly higher valuation than International Business Machines, reflecting its more aggressive growth profile within the networking sector.
Metric
Arista Networks
International Business Machines
Forward P/E
50.4x
18.3x
P/S ratio
24.8x
3.1x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
These companies have completely different growth, return, and income profiles. Arista is a high-growth networking provider for AI data centers, while IBM is growing revenue at single-digit rates and distributing over half of its annual free cash flow to shareholders as dividends. Growth investors will naturally be more interested in Arista, while more cautious investors who like dividends will opt for IBM.
Since I favor stocks that offer the highest total return potential, regardless of dividends, I would buy Arista Networks. It has a higher risk, but it also offers high long-term upside potential.
IBM trades at around 18 times forward earnings, but analysts are currently projecting about 6% annualized growth. With a 3% dividend yield, investors can expect an annualized return of around 10% with IBM stock.
Arista Networks has consistently reported high double-digit revenue growth, and the top-line growth rate accelerated last quarter, up 38% year over year. This reflects a huge opportunity in the AI data center market.
Arista faces competition, so it has to keep innovating and investing to keep growing. The stock could also underperform if the AI infrastructure market cooled off. But I would view this as a multi-decade investment that could deliver substantial returns as the global economy goes all in on AI.
Should you buy stock in Arista Networks right now?
Before you buy stock in Arista Networks, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arista Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 29, 2026.
John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Adobe, Arista Networks, International Business Machines, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Oct 26	TTM	Median
Net Profit Margin	—	15.52	—	—	—	15.52	10.12
Operating Margin	—	16.08	—	—	—	16.08	10.80
Gross Margin	—	58.10	—	—	—	58.10	50.00
Return on tangible equity	—	0.00	—	—	—	0.00	26.05

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Oct 26	TTM	Median
EPS	1.91	—	2.93	—	2.95	2.95	0.36
EPS Forecast	1.81	—	2.93	—	2.88	2.88	0.25
Revenue	—	17.16B	—	—	—	17.16B	66.00M
Gross Profit	—	9.91B	—	—	—	9.91B	—
EBITDA	—	3.96B	—	—	—	3.96B	—

International Business Machines Corporation

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Oct 26	TTM	Median
P/E	—	24.73	—	—	22.33	22.33	33.34
Price/Sales	—	3.84	—	—	3.47	3.47	2.86
P/B	7.71	7.61	—	—	6.88	6.88	3.01
P/FCF	—	19.21	—	16.09	17.34	17.34	23.04

Indicator	Apr 26	Jun 26	Jul 26	Aug 26	Oct 26	TTM	Median
ROE	—	—	—	—	—	35.44	14.14
ROA	—	7.07	—	—	—	7.07	6.67
ROI	—	12.18	—	—	—	12.18	10.08
Net Worth	219.92	266.17	—	222.95	240.34	240.34	1.02
Quick Ratio	—	0.74	—	—	—	0.74	1.59
Current Ratio	—	0.79	—	—	—	0.79	1.86