What does International Business Machines Corporation do?

International Business Machines (NYSE: IBM) is the world's most veteran technology company: founded in 1911, it has been reinventing itself for 115 years. After a lost decade (2012-2022, stagnant sales while the tech world soared), CEO Arvind Krishna — an engineer, at the helm since 2020 — focused it on two things: hybrid cloud (its Red Hat acquisition) and enterprise AI (its watsonx platform). Today IBM is growing again like it hasn't in decades. The 3 businesses (Q1 2026 figures): Software (~$7.1 billion/quarter, +11%) — the engine. Includes Red Hat (the system that lets a company use several clouds at once), watsonx (the enterprise AI and agents platform), automation, security, and data — reinforced by the Confluent acquisition ($11.6 billion, closed March 2026), which moves data in real time: the fuel for AI agents. AI software already exceeds $1.5 billion in revenue, growing +40% annually. Consulting (~$5.3 billion/quarter, +4%) — tens of thousands of experts who install that technology inside banks, governments, and companies. Generative AI is already ~30% of its order backlog, and 80% of that AI business comes from net-new clients. Infrastructure (~$3.3 billion/quarter, +15%) — the IBM Z mainframes: the supercomputers that process the world's card payments and banking transactions (450 billion AI operations a day, with 1-millisecond response). The new z17 generation, with built-in AI, grew +48% in the quarter and placed more than $1 billion in its first year — a better cycle than previous ones. The ace up the sleeve: IBM remains on track to deliver a large-scale fault-tolerant quantum computer in 2029 (project Starling) — if it succeeds, it would be among the world's first. Leadership: CEO Arvind Krishna. Headquarters in Armonk, New York. ~265,000 employees, presence in ~175 countries. Dividend (aristocrat): $1.69 per share per quarter = $6.76 annually, a yield of ~2.4% at today's price. It has raised the dividend for 31 consecutive years and has paid quarterly without fail since 1916 — 110 straight years. 2026 context: Q1 revenue of $15.9 billion (+9%) and the best first-quarter free cash flow in a decade ($2.2 billion). Full-year guidance: more than 5% growth (at constant currency) and ~$1 billion more free cash flow than in 2025.

Why did Vectorial Data pick IBM?

IBM at $286.25 is buying the 'boring but safe' AI bet: it doesn't sell promises, it sells software, consultants, and machines that banks already use — and it's growing again like it hasn't in decades. Specific reasons: (1) The reacceleration is real: Q1 2026 with revenue +9% ($15.9 billion), software +11%, and the best first-quarter free cash flow in a decade. 2026 guidance: grow more than 5%. (2) Enterprise AI is already getting paid: more than $12.5 billion accumulated in generative AI contracts, AI software above $1.5 billion growing +40% annually, and AI already ~30% of the consulting backlog. IBM doesn't compete to build the smartest chatbot: it installs AI inside banks, insurers, and governments, where trust and regulation matter more than hype. (3) The z17 cycle is breaking records: mainframes grew +48%; they process the world's payments (450 billion AI operations daily with 1-millisecond response) and the new generation has built-in AI — more than $1 billion placed in its first year. (4) Dividend aristocrat: 31 consecutive years of increases, payments without fail since 1916, ~2.4% annually at today's price — you get paid while you wait. (5) Optionality nobody is pricing in: the fault-tolerant quantum computer promised for 2029 (Starling) plus Confluent ($11.6 billion in real-time data, the fuel for AI agents). Analysts: 'Buy' consensus (22 analysts); JPMorgan upgraded to 'Overweight' on June 23, 2026 on software acceleration; average target ~$294.

What are the risks of investing in IBM?

Risks: (1) The price is already celebrating — #1: the stock trades near all-time highs, at ~25x trailing earnings (well above its own average of the past decade), and the average analyst target ($294) sits only ~2.7% higher: the consensus sees little immediate juice. You're buying quality, not a bargain. (2) Soft consulting: it grew only +4% (+1% excluding currency effects); it's a third of the business and depends on corporate spending appetite — if the economy cools, consulting projects are the first thing cut. (3) It competes against giants: in cloud and AI, Amazon, Microsoft, and Google invest tens of billions more each year; IBM plays its niche well (hybrid cloud, 'serious' AI for regulated industries), but the niche has borders. (4) ~$70 billion of debt, swollen by big acquisitions (HashiCorp in 2025, Confluent in 2026); it limits room to maneuver if something goes wrong. (5) The ghost of the lost decade: IBM spent more than 10 years without growing; the current reacceleration is only a few quarters old, and its own guidance admits Infrastructure will decline for the full year as the z17 cycle matures. If growth stalls again, today's multiple doesn't hold.

Does IBM pay dividends?

Yes. International Business Machines Corporation pays a dividend of about 2.4% per year.

How can I buy IBM with little money?

You can buy fractional shares of IBM starting from a few dollars with any broker that offers fractional shares. The Vectorial Data method: invest the same amount in every pick, every time.

When was this IBM analysis last updated?

The IBM analysis was last updated on Invalid Date.

Stocks/IBM

IBM — International Business Machines Corporation

TechnologyNorth AmericaUnited StatesBlockchain certified

$286.25

Target: $294.00 (+2.7%)

P/E Ratio

25.3

P/E Forward

23.0

Dividend

2.4%

Market Cap

$269B

EPS

$11.31

Consensus

Buy

What they do

International Business Machines (NYSE: IBM) is the world's most veteran technology company: founded in 1911, it has been reinventing itself for 115 years. After a lost decade (2012-2022, stagnant sales while the tech world soared), CEO Arvind Krishna — an engineer, at the helm since 2020 — focused it on two things: hybrid cloud (its Red Hat acquisition) and enterprise AI (its watsonx platform). Today IBM is growing again like it hasn't in decades.

The 3 businesses (Q1 2026 figures):

Software (~$7.1 billion/quarter, +11%) — the engine. Includes Red Hat (the system that lets a company use several clouds at once), watsonx (the enterprise AI and agents platform), automation, security, and data — reinforced by the Confluent acquisition ($11.6 billion, closed March 2026), which moves data in real time: the fuel for AI agents. AI software already exceeds $1.5 billion in revenue, growing +40% annually.
Consulting (~$5.3 billion/quarter, +4%) — tens of thousands of experts who install that technology inside banks, governments, and companies. Generative AI is already ~30% of its order backlog, and 80% of that AI business comes from net-new clients.
Infrastructure (~$3.3 billion/quarter, +15%) — the IBM Z mainframes: the supercomputers that process the world's card payments and banking transactions (450 billion AI operations a day, with 1-millisecond response). The new z17 generation, with built-in AI, grew +48% in the quarter and placed more than $1 billion in its first year — a better cycle than previous ones.

The ace up the sleeve: IBM remains on track to deliver a large-scale fault-tolerant quantum computer in 2029 (project Starling) — if it succeeds, it would be among the world's first.

Leadership: CEO Arvind Krishna. Headquarters in Armonk, New York. ~265,000 employees, presence in ~175 countries.

Dividend (aristocrat): $1.69 per share per quarter = $6.76 annually, a yield of ~2.4% at today's price. It has raised the dividend for 31 consecutive years and has paid quarterly without fail since 1916 — 110 straight years.

2026 context: Q1 revenue of $15.9 billion (+9%) and the best first-quarter free cash flow in a decade ($2.2 billion). Full-year guidance: more than 5% growth (at constant currency) and ~$1 billion more free cash flow than in 2025.

Why we like it

IBM at $286.25 is buying the 'boring but safe' AI bet: it doesn't sell promises, it sells software, consultants, and machines that banks already use — and it's growing again like it hasn't in decades. Specific reasons:

The reacceleration is real: Q1 2026 with revenue +9% ($15.9 billion), software +11%, and the best first-quarter free cash flow in a decade. 2026 guidance: grow more than 5%.
Enterprise AI is already getting paid: more than $12.5 billion accumulated in generative AI contracts, AI software above $1.5 billion growing +40% annually, and AI already ~30% of the consulting backlog. IBM doesn't compete to build the smartest chatbot: it installs AI inside banks, insurers, and governments, where trust and regulation matter more than hype.
The z17 cycle is breaking records: mainframes grew +48%; they process the world's payments (450 billion AI operations daily with 1-millisecond response) and the new generation has built-in AI — more than $1 billion placed in its first year.
Dividend aristocrat: 31 consecutive years of increases, payments without fail since 1916, ~2.4% annually at today's price — you get paid while you wait.
Optionality nobody is pricing in: the fault-tolerant quantum computer promised for 2029 (Starling) plus Confluent ($11.6 billion in real-time data, the fuel for AI agents). Analysts: 'Buy' consensus (22 analysts); JPMorgan upgraded to 'Overweight' on June 23, 2026 on software acceleration; average target ~$294.

Key Risk

Risks:

The price is already celebrating — #1: the stock trades near all-time highs, at ~25x trailing earnings (well above its own average of the past decade), and the average analyst target ($294) sits only ~2.7% higher: the consensus sees little immediate juice. You're buying quality, not a bargain.
Soft consulting: it grew only +4% (+1% excluding currency effects); it's a third of the business and depends on corporate spending appetite — if the economy cools, consulting projects are the first thing cut.
It competes against giants: in cloud and AI, Amazon, Microsoft, and Google invest tens of billions more each year; IBM plays its niche well (hybrid cloud, 'serious' AI for regulated industries), but the niche has borders.
~$70 billion of debt, swollen by big acquisitions (HashiCorp in 2025, Confluent in 2026); it limits room to maneuver if something goes wrong.
The ghost of the lost decade: IBM spent more than 10 years without growing; the current reacceleration is only a few quarters old, and its own guidance admits Infrastructure will decline for the full year as the z17 cycle matures. If growth stalls again, today's multiple doesn't hold.

This is educational and informational content, not financial advice. Always consult a qualified financial advisor before making investment decisions.

Vectorial Data picked IBM on 2026-07-01 at $286.25.

Last updated: Invalid Date

Dividends received by the Vectorial portfolio

What this stock has paid the model since we bought it. Your actual amount depends on when you replicated.

Ex-div date	Per share	Shares	Total to portfolio
Aug 10, 2026	$1.6900	0.1759	$0.30

Total received: $0.30

Full Research

IBM (International Business Machines) — Research Completo

Precio: $286.25 | P/E TTM: ~25x | P/E fwd: ~23x | Div Yield: ~2.4% | Market Cap: ~$269B USD

¿Qué es IBM hoy?

La empresa de tecnología más veterana del mundo (fundada en 1911, 115 años) en su mejor momento en décadas. Bajo el CEO Arvind Krishna (desde 2020) se enfocó en nube híbrida (Red Hat) e IA para empresas (watsonx). Sede en Armonk, Nueva York. ~265,000 empleados, presencia en ~175 países.

Los 3 negocios (Q1 2026)

Segmento	Ventas Q1 2026	Crecimiento	Qué es
Software	$7.1 mil millones	+11%	Red Hat (nube híbrida), watsonx (IA/agentes), automatización, datos (Confluent), seguridad
Consultoría	$5.3 mil millones	+4%	Expertos que instalan la tecnología en bancos, gobiernos y empresas
Infraestructura	$3.3 mil millones	+15%	Mainframes IBM Z (z17), servidores Power, almacenamiento

(Más Financiamiento: $220 millones, +15%.)

Último trimestre (Q1 2026, reportado 22 abr 2026)

Métrica	Q1 2026
Ingresos	$15.9 mil millones (+9%)
Utilidad neta (GAAP)	$1.2 mil millones
EPS operativo (no-GAAP)	$1.91 (+19%)
Flujo de caja libre	$2.2 mil millones — el mejor Q1 en una década
Mainframes IBM Z	+48%

Guía FY2026: crecimiento de ingresos de más de 5% (a moneda constante) y ~$1 mil millones más de flujo de caja libre que en 2025. Software apunta a crecer 10%+ en el año; Infraestructura caería un dígito bajo cuando madure el ciclo z17.

La tesis de IA empresarial

Book of business de IA generativa: más de $12.5 mil millones acumulados (cifra al cierre de 2025; en 2026 IBM pasó a reportar métricas de resultado en lugar de una sola cifra acumulada).
El software de IA ya supera $1.5 mil millones de ingresos, creciendo más de 40% anual.
La IA generativa ya es ~30% de la cartera de pedidos de consultoría; el 80% de ese negocio viene de clientes nuevos.
z17: la nueva mainframe con IA integrada — 450 mil millones de operaciones de IA diarias con respuesta de 1 milisegundo; más de $1 mil millones colocados en su primer año, un ciclo mejor que los anteriores.
Quantum: IBM mantiene el plan de entregar una computadora cuántica tolerante a fallos a gran escala en 2029 (Starling) — opcionalidad que el precio no cobra.
Confluent: compra de $11.6 mil millones cerrada en marzo 2026 — datos en tiempo real, el combustible de los agentes de IA; aportaría más de 15 puntos al crecimiento de 20-25% que IBM proyecta en su negocio de datos este año.

Dividendo (aristócrata)

$1.69 por acción al trimestre → $6.76 anuales = ~2.4% a $286.25.
31 años consecutivos de aumentos (el más reciente, abril 2026); pagos trimestrales sin falta desde 1916 — 110 años.

Liderazgo

CEO: Arvind Krishna (desde abril 2020).
Sede: Armonk, Nueva York. ~265,000 empleados.

Anchor Fact

Aunque no la veas, usas IBM casi a diario: cuando pagas con tarjeta o sacas dinero del cajero, lo más probable es que la operación pase por una de sus mainframes, que responden en un milisegundo. IBM acaba de renovar esas máquinas con IA integrada (z17) y ese negocio creció 48% el último trimestre — por eso una empresa de 115 años cotiza en máximos históricos.

Top 5 Risks

Valuación en máximos — ~25x utilidad histórica, muy por arriba de su propio promedio; target promedio (~$294) apenas ~2.7% arriba
Consultoría floja — +4% (+1% a moneda constante); un tercio del negocio, depende del gasto corporativo
Hyperscalers — Amazon, Microsoft y Google invierten decenas de miles de millones más en nube e IA
Deuda ~$70 mil millones — engordada por compras (HashiCorp, Confluent)
Historial de crecimiento lento — más de una década estancada antes de esta reaceleración; la guía prevé que Infraestructura caiga en el año completo al madurar el ciclo z17

Analyst Consensus

Rating: Buy (22 analistas, S&P Global)
Target promedio: ~$294 (~+2.7% desde $286.25); rango $195-$390
JPMorgan subió a 'Overweight' el 23 de junio de 2026 (target $291) por la aceleración esperada del software en el segundo semestre

Tesis en una línea

La empresa de tecnología más veterana del mundo, reconvertida en la apuesta 'aburrida pero segura' de la IA empresarial: software + consultores + las mainframes donde ya corren los bancos, pagándote dividendo 31 años al hilo mientras crece como no lo hacía en décadas.

Research fecha: 1 Jul 2026 | Próxima revisión: Ene 2027

Esto no es asesoría financiera.

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Researched: 7/1/2026Updated: 7/1/2026Next review: 1/1/2027

This is not financial advice. Consult a certified financial advisor.

The author may hold positions in the securities discussed.

Past performance does not guarantee future results.