International Business Machines Corporation (IBM) scored on five pillars from its reported financial statements, and ranked against 260 Technology companies.
International Business Machines Corporation (IBM) scores 6.0 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on profitability, and solvency is what holds it back.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
We cannot judge International Business Machines Corporation yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
On the filings behind it, International Business Machines Corporation earns 6.0 out of 10 for business quality as of October 16, 2026. That is solid quality on our scale. A solid reading is a respectable business with clear strengths and at least one area that falls short of the best in its field. The figure is a weighted average of five pillars, each scored from 0 to 10 against sector-aware benchmarks from reported statements.
Set against 260 Technology companies, International Business Machines Corporation lands at the 54th percentile, in the upper half of the group, short of the top quarter. The median across the group is 5.9, and the top quarter begins at 6.7, so International Business Machines Corporation is in line with the typical company here.
International Business Machines Corporation’s profitability score is 7.0 out of 10 (strong). Against a median of 4.6 among 252 Technology companies, that is well above the group and the 78th percentile. Returns and margins at this level leave room to reinvest, absorb a bad year or return cash to shareholders without straining the business.
On solvency, International Business Machines Corporation scores 4.9, an average reading. Its peers have a median of 8.0 across 194 Technology companies, which places it well below them, at the 14th percentile. An average solvency reading suggests debt is present but manageable, the normal state for a company that borrows to fund its operations.
Growth scores 5.3 out of 10, which reads as average. The median across 207 Technology companies is 6.4, so International Business Machines Corporation is below its peers on this pillar and ranks at the 35th percentile. Average growth reflects a business expanding at roughly the pace of its sector, without a clear acceleration or decline.
On efficiency, International Business Machines Corporation scores 6.7, an average reading. Its peers have a median of 7.1 across 240 Technology companies, which places it in line with them, at the 44th percentile. An average efficiency reading suggests the business turns its assets and earnings into cash at roughly the rate its sector does.
On predictability, International Business Machines Corporation scores 6.1, an average reading. Its peers have a median of 4.7 across 258 Technology companies, which places it above them, at the 78th percentile. An average predictability reading means results have wobbled about as much as is normal for the sector.
The profile is uneven. Profitability leads at 7.0 while solvency trails at 4.9, a gap of 2.1 points, so the overall averages a clear strength against a clear soft spot. Leading with profitability is the most valuable kind of strength, because margins and returns are what the other pillars ultimately feed. A solvency shortfall makes the business more exposed to rising rates and to a weak year.
Of everything that could lift International Business Machines Corporation’s score, solvency matters most. Bringing it up to the 8.0 median of Technology companies would take the overall from 6.0 to roughly 6.6. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.
These are the Technology companies closest to International Business Machines Corporation in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading International Business Machines Corporation scores 6.0 out of 10, which reads as solid quality. Its strongest pillar is profitability, its weakest is solvency. Quality is not the same as a good investment: the score says nothing about the price you would pay.
International Business Machines Corporation ranks at the 54th percentile of the 260 Technology companies Lemma publishes a score for. The median there is 5.9 and the top quarter starts at 6.7, against International Business Machines Corporation’s 6.0.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 16, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for IBM are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.
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