Why is IBM down?
Down 19% in a year while the S&P 500 rose 12%.
- Investors now pay $22 for each $1 of yearly profit,
IBM's Quality Score rose 1 point on Tue, Nov 10, to 6. Its daily price swings got smaller (2 chart checks started).
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Down 19% in a year while the S&P 500 rose 12%.
| The company | Profit up 41% to $11.2B |
| Latest filing | 10-Q, Oct 22 |
After its last 4 reports it closed -0.6% on average, higher 3 of 4 times.
Averagefor quality, not price, 5 of 14 chart checks firingWhat the Quality Score means
IBM is #2 of 3 by Quality Score.
| Rank | Stock | Quality Score |
|---|---|---|
| 1 | ||
| 2 | ||
| 3 |
Sales over four quarters against a year before: IBM +6.8%, HPE +27%.
Expected to report Wed Jan 27, after the close (in 78 days).
What an earnings report is: every 3 months, a company tells everyone how much it sold and earned. We read the figures, the outlook, and how the stock moved after.
The figures are not read from the release yet.
IBM's results filing gives no sales by line in a table we read.
| Measure | Figure |
|---|---|
| Free cash flow increase year-over-year | more than $1 billion year-over-year |
“At current foreign exchange rates, currency is expected to be neutral to growth for the year”
From its results filing (SEC filing · Oct 21)
Sales grew 4.1% a year over 5 years, fiscal 2020 to 2025.
Pays $6.76 a share a year.
| Reported | Gap | Reaction | 5 days |
|---|---|---|---|
| Oct 21, 2026 | -4.1% | +0.3% | +0.7% |
| Jul 22, 2026 | -1.5% | +0.4% | +10.1% |
| Apr 22, 2026 | -7.8% | -8.3% | -9.8% |
Sales grew in five of the last seven years, to $68B in 2025. It made a profit in each of the eight years.
RSI 50.8, MACD below signal, above its 50-day, below its 200-day. Not scored.
Its dividends come to 44% of its free cash flow.
| Dividend | $6.76 a share a year |
| Paid out | About $6.4B a year |
| Free cash flow | $15B |
| Record | Raised every year since 2016 |
One insider sold $5.8M across 1 filing in the last 6 months. No open-market buys on record. The newest:
54 trades disclosed in the last six months. The newest:
Officers and directors with a Form 4 in the last 12 months.
In ETFs: IBM is 1.4% of XLK, 1.1% of DGRO, and 1.0% of FTEC, the most of the 24 funds Breakaway covers, by each fund's latest filing, Jun 30 to Jul 31, 2026.
Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which includes 95% of all Fortune 500 companies. IBM's products, including Red Hat, watsonx, and mainframes, handle some of the world's most important data workloads in areas like finance and retail.
“IBM is a globally integrated enterprise that participates in a highly competitive environment.”
IBM scores 6 today, which Breakaway calls Average. It is #2 of 3 in Computer & Office Equipment by Quality Score, with 5 of 14 chart checks firing. Down 19% in a year while the S&P 500 rose 12%. Breakaway does not say whether to buy any stock: the score does not know your situation, and it is not a recommendation to buy or sell anything. Please do your own research.
IBM scores 6 today, which Breakaway calls Average (6 to 10). That is #2 of 3 in Computer & Office Equipment by Quality Score. The score adds up the chart checks, the trend, the company's filed sales, its profits, the news, insider trades, and Congress trades. The section above lists the lines behind IBM's 6.
One insider sold $5.8M across 1 filing in the last 6 months. No open-market buys on record. The newest is Robert David Thomas, Senior Vice President, who sold $5.8M on Aug 26.
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Insider and Congress trades, the chart, and the financials, in one score.
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