IBM delivers enterprise technology and services that help large organizations run and grow with hybrid cloud and artificial intelligence. Its products mix cloud platforms, data and AI software, consulting and managed services, and hardware like mainframes and quantum devices, all integrated through a software-enabled ecosystem. The company differentiates itself with a long enterprise pedigree, a strong emphasis on security and governance, and an open, container-based ecosystem gained through Red Hat to support hybrid cloud at scale. Its goal is to enable customers to transform operations and accelerate innovation by providing integrated, scalable, and secure cloud, data, and AI capabilities, while advancing quantum computing.
Company Size
10,001+
Company Stage
IPO
Headquarters
Town of North Castle, New York
Founded
1911
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Hybrid Work Options
IBM has introduced self-hosted deployment for IBM Bob, its agentic software development platform, allowing enterprises to use AI-powered development tools within their own controlled infrastructure. The new deployment option enables organisations to run Bob on premises, in private clouds, sovereign clouds, and air-gapped environments without moving sensitive code or data externally. The solution addresses growing demand for AI sovereignty, particularly amongst regulated industries with strict security and compliance requirements. According to Futurum Research, hybrid and edge deployments are projected to capture 44% of the AI infrastructure market by 2030. IBM Bob's self-hosted version allows enterprises to deploy AI capabilities where their code and data already reside. Organisations can run supported models on premises or connect to external model services through hybrid configurations whilst maintaining control over data residency, security policies, and AI governance.
IBM launched its sovereign agentic AI platform with Yotta in India on 29 September. Shares rose approximately 0.3% to $220.60 on 30 September at 10.25 ET. The platform combines IBM's watsonx Orchestrate, which manages and governs AI agents, with Yotta's Shakti Cloud infrastructure. It operates through Panvel and Greater Noida cloud regions, supporting tasks including security operations, document processing, and HR automation whilst keeping data and governance controls within India. The announcement did not disclose customer names, pricing, or contract values. IBM shares currently trade 9.22% below the $242.99 GF Value estimate. The platform's commercial success will depend on securing paying customers and generating recurring software revenue from regulated workloads requiring local data control.
IBM is bringing its agent identity and credential tools into Nvidia OpenShell as AI agents gain permission to operate inside businesses. Shares fell about 2.0% to $220.89 on Monday. IBM Agent Identity, now in public preview, establishes an agent's identity and authority. HashiCorp Vault controls access to credentials, whilst IBM Identity Protection helps security teams spot agents operating outside their view. Red Hat OpenShift enables running agents across different computing environments. The announcement provides no contract value, pricing, or date for a full Agent Identity release. The share price sits 9.08% below its $242.94 GF Value estimate, a gap that could narrow if IBM converts agent security into meaningful sales.
IBM has maintained its dividend for 31 consecutive years, but quarterly increases have slowed to just one cent at a time since 2021, rising from $1.63 to $1.69. Shares fell 22% year-to-date, closing at $225.47. The company has shifted significantly, with software now representing nearly 45% of revenue and generating $24.6 billion in annual recurring revenue, up 8%. IBM produced $14.73 billion in free cash flow in 2025, comfortably covering $6.26 billion in dividend payments. However, $61 billion in debt and a planned $10 billion quantum investment over five years are consuming available cash. Acquisitions totalled $8.29 billion in 2025. The company's transformation prioritises reinvestment over dividend growth, with free cash flow increases expected to continue whilst shareholders receive minimal payout raises.
IBM and Lockheed Martin have established a quantum innovation hub at ETH Zurich through an offset agreement with Switzerland's Federal Office for Defence Procurement. The facility will house Switzerland's first IBM Quantum System Two, powered by IBM's Quantum Nighthawk processor, at the Swiss National Supercomputing Centre in Lugano. The collaboration combines IBM's quantum computing and AI expertise with Lockheed Martin's focus on quantum sensing and additive manufacturing. For IBM, the deployment strengthens its presence in European research infrastructure. For Lockheed Martin, the partnership enhances its technology capabilities for defence applications. Both companies face execution risks. IBM's high debt levels limit financial flexibility whilst funding early-stage quantum research. Lockheed Martin contends with margin pressure from programme costs and supply chain issues whilst allocating resources to speculative quantum platforms.