Important note
This AI stock analysis for IBM is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
IBM - AI Stock Analysis
Analysis generated October 23, 2025
International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911, IBM has evolved from its inception as a leader in hardware to a strong player in cloud computing, artificial intelligence, and enterprise software solutions. The company's diverse portfolio includes analytics, cybersecurity, cloud solutions, and consulting services tailored for businesses of various sizes and industries.
Fundamental Analysis
Revenue: IBM's revenue for the last quarter was $17 billion. This represents a 16.75% increase from the previous quarter, signaling robust growth. When compared to the same quarter last year, there is a 7.66% increase, underlining positive year-over-year growth.
Net Income: The net income for the last quarter stood at $2.19 billion. This marks a striking increase of 107.96% compared to the quarter before it, demonstrating IBM's improved profitability. On a year-over-year basis, the net income increased by 19.63%, further indicating a growth trajectory.
EBITDA: IBM reported an EBITDA of $4.37 billion in the last quarter, which is a 56.77% increase from the previous quarter. Compared to the same quarter last year, this reflects a 15.07% rise, signaling prolonged improvements in the company’s earnings before interest, taxes, depreciation, and amortization.
P/E Ratio: The current Price-to-Earnings (P/E) ratio for IBM stands at 45.42. Although a high P/E ratio might suggest investor confidence in the future growth potential of the company, it could also indicate overvaluation, presenting a potentially bearish outlook.
Technical Analysis
Current Stock Price: Today's stock price for IBM is $284.74, marking a 4.59% increase compared to a month ago, indicating a positive short-term trend. Over the past year, the stock price has soared by 34.11%, signifying a positive long-term trend.
Simple Moving Average (SMA): The current SMA10 is 281.47, which is slightly higher than the previous SMA10 of 280.71. This indicates potential upward price movement, supporting the bullish outlook.
Relative Strength Index (RSI): The current RSI is 41, suggesting a neutral condition in the market. This implies that the stock is neither oversold nor overbought, presenting a stable investment environment.
Alternative Data Analysis
Job Postings and Employee Sentiment: IBM has 3,068 open positions as per the latest data from job boards. This figure has surged by 19% in the last couple of months, providing a healthy sign of the company's expansion and growth aspirations. Employee sentiment at IBM remains neutral, indicating neither extreme optimism nor pessimism amongst the workforce.
Customer Acquisition: IBM's website attracted an estimated 17 million visitors recently, reflecting a 15% increase over the last few months. This bullish trend points toward potential growth and increased customer acquisition.
Customer Engagement: As for customer engagement, IBM has 690,000 followers on Instagram and 710,000 followers on Twitter. The engagement levels on these platforms have remained steady in recent months, with no significant increase or decrease.
AI Score: According to AltIndex's AI score, which takes into account various fundamental, technical, and alternative data metrics, IBM has a score of 70. This constitutes a buy signal, indicating a favorable investment outlook according to AI predictions.
Conclusion
IBM displays a promising blend of strong financial performance, positive technical indicators, and healthy alternative data metrics. The substantial increases in revenue, net income, and EBITDA underscore the company's solid financial footing and growth potential. Despite a high P/E ratio that could indicate overvaluation, the overall outlook remains favorable.
Technical analysis suggests a bullish trend supported by upward price movement and stability in RSI. Alternative data further buttresses this positive stance with rising job postings and website traffic, implying expansion and customer acquisition.
Based on these comprehensive analyses, IBM presents an attractive investment opportunity with a buy recommendation.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
