International Business Machines Corporation (IBM)

IBM's stock performance has been influenced by quarterly earnings and advancements in AI and quantum computing. In Q4 2024, IBM surpassed EPS and revenue expectations, driven by software revenue growth. In Q1 2025, IBM beat revenue, margins, and free cash flow consensus, but the stock fell due to profit-taking. In Q2 2025, IBM reported overall revenue and adjusted EPS exceeding estimates, but software revenue growth was slower than expected. Analyst activity in July 2025 included target price increases and upgrades from Goldman Sachs Group, Wall Street Zen, and Melius Research. IBM's stock saw a 5% increase in September 2025 due to a quantum computing breakthrough.

Demand for IBM's products and services is influenced by economic cycles, client spending, and the nature of its offerings. AI solutions are in increasing demand, and IBM's software segment has shown strong growth. Cloud computing offers flexibility for seasonal demand spikes. Consulting revenue experienced a dip in Q2 2025 due to clients scaling back discretionary spending, but long-term AI integration projects are expected to drive demand. The company's focus on enterprise solutions, hybrid cloud, and AI suggests a demand driven more by ongoing digital transformation initiatives and strategic investments rather than traditional consumer-driven seasonality.

IBM is a global technology and consulting company providing hybrid cloud, AI, and consulting solutions. It operates in the Information Technology sector, offering hardware, software, and services, including cognitive solutions, IT services, mainframes, microprocessors, storage systems, analytics software, AI, and cloud services.

IBM has a vast global presence, operating in over 170 countries and territories with 12 research labs across six continents. Its headquarters is in Armonk, New York, and it has a significant employee base in India. The company has offices and data centers worldwide, including locations in the United States, United Kingdom, Ireland, France, Switzerland, India, Japan, China, Brazil, and Mexico.

IBM's brand reputation has focused on AI and hybrid cloud advancements, launching the 'Let's create smarter business' campaign and showcasing innovations at the Think 2024 conference. However, IBM's brand ranking declined in the 2024 world rankings. IT system failure remains a general concern, and the withdrawal of the System z Personal Development Tool could be perceived negatively by some developers.

IBM is primarily held by institutional investors, who collectively own 63.62% of its shares. Major institutional owners include Vanguard Group Inc., BlackRock Inc., and State Street Corp. Major individual owners include Arvind Krishna, James J. Kavanaugh, and Gary D. Cohn.