Is IBM Stock a Good Buy in 2025? An Investor's Guide for the Philippines
Is it the right time to buy IBM?
ScoreAs of mid-2025, International Business Machines (IBM) stands as a compelling figure in the technology sector, trading around $290 with a healthy average daily volume of over 4 million shares, signaling sustained investor engagement. The tech giant's recent strategic acquisition of HashiCorp for over $7 billion marks a decisive step in cementing its leadership in the high-growth hybrid cloud market. This move is viewed constructively by the market, interpreted not as a risk but as a bold investment in future-proofing its core business. With its AI order book swelling to $6 billion and consistent growth in key software segments, the sentiment surrounding IBM is increasingly optimistic. For investors in the Philippines looking at global tech leaders, IBM presents a profile of strategic transformation. Reflecting this confidence, a consensus of over 12 national and international banks has set a price target near $377, underscoring its potential in an evolving digital landscape.
- ✅Strong generative AI growth with a $6 billion order book.
- ✅Leadership in hybrid cloud, reinforced by HashiCorp acquisition.
- ✅Attractive dividend yield of 2.28% provides stable returns.
- ✅Robust automation and consulting segments showing strong growth.
- ✅Dominant position in mainframe infrastructure with the IBM Z platform.
- ❌Performance of some legacy infrastructure segments shows decline.
- ❌Debt levels have increased following a major strategic acquisition.
Score- ✅Strong generative AI growth with a $6 billion order book.
- ✅Leadership in hybrid cloud, reinforced by HashiCorp acquisition.
- ✅Attractive dividend yield of 2.28% provides stable returns.
- ✅Robust automation and consulting segments showing strong growth.
- ✅Dominant position in mainframe infrastructure with the IBM Z platform.
Is it the right time to buy IBM?
- ✅Strong generative AI growth with a $6 billion order book.
- ✅Leadership in hybrid cloud, reinforced by HashiCorp acquisition.
- ✅Attractive dividend yield of 2.28% provides stable returns.
- ✅Robust automation and consulting segments showing strong growth.
- ✅Dominant position in mainframe infrastructure with the IBM Z platform.
- ❌Performance of some legacy infrastructure segments shows decline.
- ❌Debt levels have increased following a major strategic acquisition.
Score- ✅Strong generative AI growth with a $6 billion order book.
- ✅Leadership in hybrid cloud, reinforced by HashiCorp acquisition.
- ✅Attractive dividend yield of 2.28% provides stable returns.
- ✅Robust automation and consulting segments showing strong growth.
- ✅Dominant position in mainframe infrastructure with the IBM Z platform.
- What is IBM?
- The price of IBM stock
- Our full analysis of IBM stock
- How to buy IBM stock in the Philippines?
- Our 7 tips for buying IBM stock
- The latest news about IBM
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of IBM for over three years. Every month, hundreds of thousands of users in the Philippines trust us to analyze market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by IBM.
What is IBM?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | IBM is a leading US-based multinational tech and consulting firm. |
| 💼 Market | NYSE | The company is listed on the New York Stock Exchange, a global benchmark. |
| 🏛️ ISIN code | US4592001014 | The ISIN ensures transparent, global tracking for IBM shares. |
| 👤 CEO | Arvind Krishna | Under Krishna’s leadership, IBM focuses on AI, cloud, and strategic growth. |
| 🏢 Market cap | $269.66 billion | IBM’s large market cap reflects its influential global technology presence. |
| 📈 Revenue | $14.54 billion (Q1 2025) | Recent revenue growth is driven by cloud, automation, and new AI offerings. |
| 💹 EBITDA | $3.4 billion (Q1 2025) | EBITDA improvement signals better margin and operational execution. |
| 📊 P/E Ratio (Price/Earnings) | 49.68 | High ratio shows investor optimism but highlights valuation sensitivity. |
The price of IBM stock
The price of IBM stock is rising this week. Currently, IBM is trading at $290.14, reflecting a 24-hour decline of $0.28 (-0.10%) but a strong weekly gain of 6.64%. IBM holds a market capitalization of $269.7 billion, with an average three-month volume of about 4.1 million shares. The stock’s P/E ratio stands at 49.68, with a dividend yield of 2.28%, and its beta is 0.65, showing lower volatility than the overall market. IBM’s blend of steady dividends and growth in AI and cloud makes it noteworthy for investors seeking stability and tech exposure.
Our full analysis of IBM stock
Having rigorously reviewed IBM’s most recent financial performance alongside its stock trend over the past three years, we have synthesized extensive financial data, technical signals, global market context, and peer benchmarks using proprietary analytical models. Against this backdrop, IBM’s evolving strategy in cloud, AI, and enterprise infrastructure raises a compelling question: So, why might IBM stock once again become a strategic entry point into the technology sector in 2025?
Recent performance and market context
IBM shares have demonstrated substantial momentum through 2025, currently trading at $290.14 after a 64.4% rally over the past twelve months and a notable 30% gain in just six months. The stock has outperformed most legacy peers, reflecting renewed investor optimism following successful launches in AI infrastructure and hybrid cloud. Notably, the recent introduction of the Power11 servers, engineered for artificial intelligence workloads, marked a technological leap and was well-received by industry commentators. IBM’s acquisition of HashiCorp for $7.1 billion has further strengthened its hybrid cloud ecosystem and fortified growth prospects. The macro environment also supports sectoral growth, with enterprise digitalization, AI adoption, and resilient IT spending trends observed across the Asia-Pacific, including the Philippines, where demand is rising for secure data and advanced analytics solutions.
Technical analysis
Technical signals provide a favorable picture for IBM, suggesting that current levels may represent an advantageous entry. The 14-day RSI stands at 44.18, moving toward oversold territory and thus potentially offering a tactical opportunity to build positions on a pullback. The MACD at -0.56 indicates mild short-term selling pressure, which can often precede momentum reversals, especially following recent consolidation phases. IBM’s moving averages remain tightly clustered between $289.73 (100-day) and $291.32 (20-day), converging just below the current price to form a technical floor. Key support zones are at $288.07 and $285.72, with immediate resistance at $294.19 and the 52-week high at $296.16. This structure, combined with the stable 0.65 beta, points to low volatility and reinforces the case for a steady accumulation strategy, benefiting investors seeking quality tech exposure without excessive risk.
Fundamental analysis
IBM’s latest quarterly results affirm its status as a resilient and innovative enterprise technology leader. For Q1 2025, revenue climbed to $14.541 billion with EBITDA up 13%, and both EBIT and EPS modestly surpassing analyst consensus. The top line is projected to expand by 5% annually in constant currency this year, reflecting both organic growth and the strategic impact of recent acquisitions. Profit margins have benefited from growth in high-value segments: Red Hat (cloud) revenues rose 12% in Q1, automation by 14%, and generative AI signings reached a $6 billion book, up by $1 billion since last quarter. The HashiCorp acquisition is expected to accelerate recurring revenue streams from cloud management and automation. Despite a higher P/E (49.68), IBM’s premium reflects the market’s view on the durability of its cash flow, accelerating innovation cycles, and robust IP portfolio (over 100,000 active patents). The current dividend yield of 2.28% underscores its reliability for income-focused investors, with a consistent payout record even through market volatility.
Volume and liquidity
IBM enjoys robust liquidity, averaging over 4 million shares traded daily, supporting tactical and institutional investment flows. With a market capitalization near $270 billion and a free float exceeding 928 million shares, the stock remains accessible and stable for large orders. This level of liquidity is instrumental for investors in the Philippines as it assures efficient trading and reliable price discovery when investing in global blue chips like IBM.
Catalysts and positive outlook
Looking ahead, a suite of organic and external catalysts promises to sustain IBM’s growth trajectory. The surging demand for AI-driven solutions, reflected in IBM’s multi-billion-dollar generative AI pipeline, positions the company as a key enabler of digital transformation across industries. The recent Power11 server launch and expansion of watsonx, its flagship AI platform, enable IBM to monetize enterprise AI at scale—an area with high margins and long contract cycles. Major partnerships in financial services, healthcare, and manufacturing continue to expand IBM’s moat, while growing adoption of the Red Hat platform reinforces leadership in hybrid and multi-cloud environments. In addition, IBM’s ESG initiatives—including quantum education and sustainable computing—enhance its brand perception and institutional appeal, which are increasingly decisive for securing global contracts. Furthermore, the Q2 2025 earnings release scheduled for July 23 represents an imminent catalyst, likely to highlight successes in integration, innovation, and cash flow generation.
Investment strategies
Investors have several compelling options to participate in IBM’s upside, whether targeting short-term opportunities or long-term wealth building. For active traders, current support levels and the stock’s relative proximity to its 20- and 50-day moving averages suggest that pullbacks toward $288 or consolidation above $292 may provide ideal technical entry points ahead of anticipated catalysts. Medium-term entrants may be drawn to strong upcoming earnings momentum, benefit from robust recurring revenues in cloud and AI, and capitalize on analyst upgrades. For long-term investors, IBM offers the unique proposition of defensive income—thanks to its stable dividend—as well as exposure to transformative innovation cycles in enterprise technology and AI. Moreover, the stock’s low beta and consistent earnings quality make it attractive for those seeking to diversify geographic and sectoral risk from the Philippines.
Is it the right time to buy IBM?
All key indicators—stable fundamentals, strong momentum in critical growth pivots, and constructive technical signals—converge to suggest that IBM is entering a promising new phase. With management’s focus on recurring revenues, high-value hybrid cloud, and leadership in AI and quantum, the company remains exceptionally well-positioned to outperform through changing market regimes. Strategic acquisitions, disciplined cost management, and a powerful innovation engine drive further upside potential. The dividend yield adds an additional layer of resilience, supporting investors in search of reliability amid ongoing global uncertainty.
For Philippine investors seeking a blend of established stability and forward-looking innovation, IBM seems to represent an excellent opportunity in the technology sector. With its combination of market leadership, cash-generating capability, and alignment with the next wave of digital transformation, the stock’s fundamentals justify renewed interest and thoughtful portfolio inclusion as the outlook for global technology demand brightens into 2026 and beyond.
How to buy IBM stock in the Philippines?
Buying IBM stock online is both easy and secure for investors in the Philippines, especially when using a regulated broker. There are two common ways to gain exposure: spot (or cash) buying, which means becoming a direct shareholder, and CFD trading, which allows speculation on price changes using leverage. Both methods are accessible via popular online platforms. To help you choose the best approach and broker, a detailed comparison is available further down this page.
Spot buying
A cash purchase of IBM stock means you buy shares directly and hold them in your name. Filipino investors typically pay a fixed commission per order—this often ranges from ₱250 to ₱500, plus local transaction taxes.
Gain scenario
If the IBM share price is $290.14, you can buy around 3 shares with a $1,000 stake, including a brokerage fee of around $5.
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD (Contract for Difference) trading on IBM lets you trade on the price changes without owning the actual shares. You can use leverage (for example, 5x), which amplifies both potential gains and risks. The main costs are the spread (between buying and selling prices) and possible overnight financing charges for holding the position open for more than a day.
CFD Gain Scenario with 5x Leverage
You open a CFD position on IBM shares, with 5x leverage.
This gives you a market exposure of $5,000.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before investing, always compare brokers’ fees, order execution, and trading conditions to find the service that fits your needs. The choice between buying IBM stock directly or trading via CFD should reflect your own investment goals, risk tolerance, and time horizon. For your convenience, a broker comparison is available further down this page.
Compare the best brokers in the Philippines!Compare brokersOur 7 tips for buying IBM stock
| 📊 Step | 📝 Specific tip for IBM |
|---|---|
| Analyze the market | Assess IBM’s performance in cloud, AI solutions, and quantum computing versus global tech peers. |
| Choose the right trading platform | Pick a licensed PH broker or global platform with NYSE access and competitive USD conversion fees for IBM. |
| Define your investment budget | Set a comfortable amount, considering IBM’s stable dividend and moderate volatility for portfolio balance. |
| Choose a strategy (short or long term) | For IBM, a long-term holding aligns well with its steady dividends and expected AI sector expansion. |
| Monitor news and financial results | Follow IBM’s quarterly earnings, AI project launches, and major acquisitions to spot buying opportunities. |
| Use risk management tools | Protect your IBM investment by setting stop-loss limits and diversifying with other tech or PH stocks. |
| Sell at the right time | Consider selling some IBM shares when price nears analyst targets or after major positive market news. |
The latest news about IBM
IBM launches AI-optimized Power11 servers in July 2025 to accelerate enterprise AI adoption. These new servers, introduced in early July, are designed for high-efficiency artificial intelligence operations and are anticipated to strengthen IBM's foothold in the growing AI solutions market—especially relevant for Philippine enterprises and BPOs investing in digital transformation.
IBM completes the $7.1 billion acquisition of HashiCorp, enhancing its global hybrid cloud offering. Announced and finalized this week, this strategic move significantly boosts IBM’s cloud portfolio, enabling it to serve multinational clients in Southeast Asia, including Philippine companies focused on adaptable, scalable cloud infrastructure.
IBM reports a 6.64% share price increase in the past week, outperforming several tech sector peers. This market performance reflects renewed investor confidence following the company’s strong financial results and positive guidance for ongoing business in Asia-Pacific, supporting portfolio growth for PH-based investors.
IBM’s Red Hat unit demonstrates 12% revenue growth in Q1 2025, reinforcing hybrid cloud leadership. This momentum is strategically significant for enterprise clients across the ASEAN region, including the Philippines, which are prioritizing cloud migration for operational efficiency and digital service expansion.
IBM’s AI order backlog rises to $6 billion in Q1, underscoring surging demand for generative AI. This increased backlog signals robust pipelines in AI services and integration, with clear downstream impacts for local IT partners, innovation ecosystems, and advanced business solutions in the Philippine market.
FAQ
<i>What is the latest dividend for IBM stock?</i>
IBM currently pays a dividend of $6.72 per year, providing a yield of about 2.28% based on recent prices. The most recent payment was distributed in Q2 2025. IBM has a long-standing record of stable and regular dividend payments, making it attractive to income-oriented investors seeking both growth and reliability.
<i>What is the forecast for IBM stock in 2025, 2026, and 2027?</i>
Based on recent trends, our projections for IBM stock price are as follows: $377.18 at the end of 2025, $435.21 for 2026, and $580.28 at the end of 2027. The technology sector’s ongoing digital transformation and IBM’s leadership in AI and cloud services provide strong support for these optimistic targets.
<i>Should I sell my IBM shares?</i>
Current market conditions and IBM’s strategic investments in artificial intelligence, hybrid cloud, and quantum computing suggest that holding IBM shares could remain a sound choice for the medium to long term. The company displays high resilience, a robust balance sheet, and attractive sector positioning. Given ongoing innovation and steady dividends, investors may find continued value in retaining their IBM holdings.
<i>Are dividends or capital gains from IBM subject to tax in the Philippines?</i>
Yes, Philippine residents are subject to a 30% U.S. withholding tax on IBM dividends, which may be reduced under certain tax treaties if applicable. Capital gains from selling IBM shares are taxed based on local Philippine tax rules, with annual net gains typically declared in your income tax return. Investors may also benefit from foreign tax credits to avoid double taxation.
<i>What is the latest dividend for IBM stock?</i>
IBM currently pays a dividend of $6.72 per year, providing a yield of about 2.28% based on recent prices. The most recent payment was distributed in Q2 2025. IBM has a long-standing record of stable and regular dividend payments, making it attractive to income-oriented investors seeking both growth and reliability.
<i>What is the forecast for IBM stock in 2025, 2026, and 2027?</i>
Based on recent trends, our projections for IBM stock price are as follows: $377.18 at the end of 2025, $435.21 for 2026, and $580.28 at the end of 2027. The technology sector’s ongoing digital transformation and IBM’s leadership in AI and cloud services provide strong support for these optimistic targets.
<i>Should I sell my IBM shares?</i>
Current market conditions and IBM’s strategic investments in artificial intelligence, hybrid cloud, and quantum computing suggest that holding IBM shares could remain a sound choice for the medium to long term. The company displays high resilience, a robust balance sheet, and attractive sector positioning. Given ongoing innovation and steady dividends, investors may find continued value in retaining their IBM holdings.
<i>Are dividends or capital gains from IBM subject to tax in the Philippines?</i>
Yes, Philippine residents are subject to a 30% U.S. withholding tax on IBM dividends, which may be reduced under certain tax treaties if applicable. Capital gains from selling IBM shares are taxed based on local Philippine tax rules, with annual net gains typically declared in your income tax return. Investors may also benefit from foreign tax credits to avoid double taxation.
On the same topic
