By Trefis Team
Publication Date: 2026-02-26 08:33:00
IBM’s stock has largely underperformed several key peers over the past year as of February 25, 2026, amid a rapidly scaling AI and cloud landscape. A closer look reveals IBM’s slower revenue growth compared to rivals like Microsoft and Google, alongside a higher valuation than some peers. Despite mixed profitability, its strong Free Cash Flow margin is notable. This suggests limited upside if hyperscale and pure-play momentum continues to favor companies with higher growth trajectories in the current tech environment.
- Operating Margin: IBM’s 17.7% operating margin is robust, though lower than MSFT’s 46.7% driven by high-margin cloud/AI software, reflecting differing business mixes.
- Revenue Growth: IBM’s 4.5% LTM revenue growth is modest; peers like MSFT & AMZN capitalize on cloud/AI/advertising, indicating IBM’s hybrid cloud pivot still gaining traction.
- Stock Performance & Valuation: IBM’s 5.5% 1-year stock decline, trading at 28.1 P/E, trails peers,…