By Trefis Team
Publication Date: 2026-10-13 20:35:00
Shares of IBM (IBM) currently trade at 19.9 times earnings, while the S&P 500 sits at 21.9. Investors buying at that multiple need to understand the underlying assets, and the company has recently changed its messaging. During the fiscal Q2 2025 call, executives focused on a running total of generative AI business that they defined as their book of business. The most recent presentation offered a different focal point. So what is management talking up instead?
IBM Now Talks Up Recurring Software Revenue
Executives are now framing the company around reliable, repeating software revenue. During the fiscal Q2 2026 call on July 22, 2026, the company noted that about 80% of its annual software revenue is recurring. This division accounts for nearly 45% of total revenue.
A year prior, leadership anchored its pitch to a different metric. During the fiscal Q2 2025 call, the company reported its generative AI book of business…
