International Business Machines Corp.
IBM
Market Cap$226.82B
Close$
Earnings Call Q2 2025
July 23, 2025 - AI Summary
Strong Q2 Performance: IBM reported $17 billion in revenue for Q2 2025, with adjusted EBITDA of $4.7 billion and operating earnings per share of $2.80. Revenue grew over 5% year-over-year at constant currency, reflecting the strength of the software and infrastructure segments, particularly in hybrid cloud and AI.
Improved Guidance: IBM raised its annual revenue growth expectation to over 5% for 2025 while also increasing free cash flow guidance to above $13.5 billion. The company is focused on a disciplined strategy and expects ongoing contributions from its software portfolio, particularly Red Hat and HashiCorp.
Positive Growth Drivers: The software segment is increasingly robust, with Red Hat growing at 14% and automation showing 15% growth in the first half of the year. Ongoing demand for AI and cloud services supports growth acceleration moving forward, with IBM's GenAI book of business reaching over $7.5 billion to date.
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$545.03
123.3% upside
Current Fair Value
123.3% upsideUndervalued by 123.3% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $226.82 Billion |
|---|---|
| Enterprise Value | $299.29 Billion |
| Dividend Yield | $6.70 (2.75%) |
| Earnings per Share | $6.53 |
| Beta | 0.68 |
| Outstanding Shares | 929,400,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 38.8 |
|---|---|
| PEG | 197.65 |
| Price to Sales | 3.59 |
| Price to Book Ratio | 8.42 |
| Enterprise Value to Revenue | 4.67 |
| Enterprise Value to EBIT | 41.2 |
| Enterprise Value to Net Income | 51 |
| Total Debt to Enterprise | 0.28 |
| Debt to Equity | 3.07 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About International Business Machines Corp.
CEO: Virginia Rometty