IBM is a public company with no controlling owner. Its largest holders are Vanguard (10.03%), BlackRock (8.3%) and State Street (6.03%), per IBM’s 2026 proxy statement.
Update (11 Oct 2026): the ownership figures at the top of this page now come from IBM’s 2026 proxy statement. The original article below is kept as it was; where its older figures differ, the dated filing figures above apply.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q, prospectus and earnings releases, or its annual report), with the period stated next to each number; outside estimates appear only labelled, with their source and date. Last refreshed October 2026. Our methodology.
IBM’s 2026 proxy statement lists three holders above 5% as of 31 December 2025: The Vanguard Group (92,822,090 shares, 10.03%), BlackRock (75,479,656, 8.3%) and State Street (55,035,821, 6.03%). Berkshire Hathaway, once a large IBM holder, no longer appears. See IBM business model.
The Business Engineer view
More than a century old, IBM is owned the way most US blue chips are: by the three big index managers. Its shift to hybrid cloud, software and consulting is judged on cash flow and the dividend.
The full story
Ownership Structure
Who Owns IBM?
Major shareholders and ownership breakdown
Key Details
Products and Services
IBM (International Business Machines Corporation) is a multinational technology company that offers a wide range of information technology (IT) products and ser
Revenue Streams
IBM generates revenue through various sources. The primary income comes from IT services, cloud services, software sales, and hardware sales. IBM also earns inc
Customer Segments
IBM serves a diverse customer base that includes businesses, government organizations, educational institutions, and nonprofit entities. The brand appeals to cl
Distribution Channels
IBM distributes its products and services through a global network of direct sales teams, business partners, and online platforms. The company also operates dat
Key Partnerships
IBM collaborates with a network of business partners, including technology resellers, system integrators, and independent software vendors (ISVs). The company a
Key Resources
IBM’s key resources include its technological expertise, research and development capabilities, global workforce, data centers, cloud infrastructure, patented t
Cost Structure
IBM incurs costs in research and development, manufacturing of hardware, software development, marketing and advertising campaigns, employee salaries (including
Competitive Advantage
IBM’s competitive advantage lies in its technological expertise, extensive portfolio of solutions, global presence, cloud capabilities, AI and data analytics pr
IBM is primarily owned by institutional investors like Vanguard Group (8.86%), BlackRock (8%), and State Street (5.93%). Top individual investors comprise Arvind Krishna, CEO of IBM; senior vice president Michelle H. Browdy; James J. Kavanaugh, responsible for the company’s financial operations; and Alex Gorsky (board member) and Gary Cohn (former vice chairman).
Aspect ยท Description ยท Analysis ยท Examples
Products and Services
Description. IBM (International Business Machines Corporation) is a multinational technology company that offers a wide range of information technology (IT) products and services. IBM provides hardware, software, cloud computing, artificial intelligence (AI), data analytics, cybersecurity solutions, consulting services, and more to clients worldwide. The company’s offerings cater to various industries and sectors.
Analysis. IBM’s core offerings encompass hardware, software, and services designed to support businesses’ IT needs. The company is known for its innovation and contributions to the technology industry. A diverse portfolio addresses clients’ diverse requirements.
Examples. IBM hardware (e.g., IBM Power Systems), software (e.g., IBM Watson), cloud computing (e.g., IBM Cloud), AI and data analytics solutions, cybersecurity services, IT consulting services, industry-specific solutions.
Revenue Streams
Description. IBM generates revenue through various sources. The primary income comes from IT services, cloud services, software sales, and hardware sales. IBM also earns income from maintenance and support services, consulting services, and licensing agreements for its software products.
Analysis. Revenue from IT services, cloud services, software sales, and hardware sales represents significant portions of income. Maintenance and support services provide ongoing revenue streams. Consulting services contribute to diversified income. Licensing agreements for software products generate additional income.
Examples. Revenue from IT services, cloud services (e.g., IBM Cloud revenue), software sales (e.g., IBM software solutions), hardware sales (e.g., IBM server sales), maintenance and support services, consulting services, licensing agreements for IBM software products.
Customer Segments
Description. IBM serves a diverse customer base that includes businesses, government organizations, educational institutions, and nonprofit entities. The brand appeals to clients seeking technology solutions, digital transformation, cloud services, AI, data analytics, and IT consulting services. IBM’s clientele spans various industries and sectors.
Analysis. IBM’s target demographic encompasses businesses and organizations across industries seeking technology-driven solutions. The brand’s expertise in IT services and innovation appeals to clients pursuing digital transformation and IT optimization.
Examples. Businesses, government agencies, educational institutions, nonprofit organizations, clients seeking technology solutions, digital transformation, cloud services, AI and data analytics, IT consulting services.
Distribution Channels
Description. IBM distributes its products and services through a global network of direct sales teams, business partners, and online platforms. The company also operates data centers and cloud infrastructure to deliver cloud services to clients worldwide.
Analysis. Direct sales teams engage with clients to provide tailored solutions. Business partners extend IBM’s reach and expertise. Online platforms enhance accessibility for digital customers. Data centers and cloud infrastructure support cloud service delivery.
Examples. IBM’s direct sales teams collaborate with clients, business partners (e.g., IBM Business Partners), online platforms (e.g., IBM Marketplace), data centers, and cloud infrastructure (e.g., IBM Cloud data centers).
Key Partnerships
Description. IBM collaborates with a network of business partners, including technology resellers, system integrators, and independent software vendors (ISVs). The company also forms strategic partnerships with other tech giants for joint ventures and initiatives. IBM may have research collaborations with academic institutions.
Analysis. Collaborations with business partners extend IBM’s product and service distribution. Strategic partnerships with tech giants drive innovation and market presence. Research collaborations with academia advance technology development.
Examples. Collaborations with technology resellers (e.g., Ingram Micro), system integrators (e.g., Accenture), ISVs (e.g., SAP), strategic partnerships with tech giants (e.g., IBM and Red Hat), research collaborations with universities and academic institutions.
Key Resources
Description. IBM’s key resources include its technological expertise, research and development capabilities, global workforce, data centers, cloud infrastructure, patented technologies, software solutions, and a legacy of innovation. The company’s reputation as a technology pioneer is a significant resource.
Analysis. IBM’s technological expertise and R&D capabilities drive innovation. A global workforce supports the company’s operations. Data centers and cloud infrastructure enable cloud services. Patented technologies provide competitive advantages. Software solutions cater to diverse needs. IBM’s legacy as a technology pioneer is a valuable resource.
Examples. Technological expertise, research and development capabilities, global workforce, data centers and cloud infrastructure, patented technologies, software solutions (e.g., IBM Watson), legacy of innovation, reputation as a technology pioneer.
Cost Structure
Description. IBM incurs costs in research and development, manufacturing of hardware, software development, marketing and advertising campaigns, employee salaries (including researchers and software engineers), cloud infrastructure maintenance, and operating data centers.
Analysis. Costs associated with research and development are substantial due to technological innovation. Manufacturing of hardware and software development require resources. Marketing and advertising campaigns promote IBM’s products and services. Employee salaries, especially for researchers and engineers, are significant. Cloud infrastructure maintenance and data center operations have associated expenses.
Examples. Costs related to research and development of new technologies, manufacturing of hardware and software development (e.g., IBM software development costs), marketing and advertising campaigns, employee salaries (e.g., researchers, software engineers), cloud infrastructure maintenance, data center operations.
Competitive Advantage
Description. IBM’s competitive advantage lies in its technological expertise, extensive portfolio of solutions, global presence, cloud capabilities, AI and data analytics prowess, and a legacy of innovation. The company’s focus on delivering end-to-end solutions to businesses sets it apart in the IT industry.
Analysis. IBM’s technological expertise and diverse portfolio cater to a wide range of client needs. A global presence ensures accessibility and support. Strong cloud capabilities and AI/data analytics leadership drive innovation. A legacy of innovation enhances credibility. A focus on comprehensive solutions is a key strength.
Examples. IBM’s technological leadership, extensive portfolio, global presence, cloud capabilities (e.g., IBM Cloud), AI and data analytics expertise (e.g., IBM Watson), legacy of innovation, commitment to delivering comprehensive IT solutions.
Value Proposition
Description. IBM provides clients with comprehensive IT solutions, including hardware, software, cloud services, AI, and data analytics, to address their business and technology challenges. The company offers technological innovation, expertise, and support to enable digital transformation and business growth.
Analysis. IBM’s value proposition centers on delivering comprehensive IT solutions that drive business success. Technological innovation and expertise empower clients to navigate digital transformation. A commitment to support and partnership fosters long-term relationships.
Examples. Achieving business goals with comprehensive IT solutions, harnessing technological innovation and expertise for digital transformation, benefiting from IBM’s commitment to support and partnership.
Top institutional sharedholres
The Vanguard Group is the largest institutional shareholder, holding 80,144,196 shares, which represents 8.86% ownership.
BlackRock Inc. is the second-largest institutional shareholder with 72,337,762 shares, amounting to an 8.0% ownership stake.
State Street Corporation ranks third among institutional shareholders, owning 53,576,165 shares and holding a 5.93% ownership stake.
Top individual shareholders
The top shareholder is Arvind Krishna, with 205,578 common stocks and a value of $28,963,884 at the fiscal year end.
Michelle H. Browdy holds the second-highest number of common stocks (103,913), with a fiscal year-end value of $14,640,303.
James J. Kavanaugh ranks third in terms of common stocks (112,968), amounting to a value of $15,916,062 at the fiscal year end.
Alex Gorsky and Gary Cohn hold significantly fewer common stocks (4,445 and 32,552, respectively) compared to the top three shareholders.
Despite having fewer common stocks, the fiscal year-end values for Alex Gorsky and Gary Cohn are still substantial at $4,008,321 and $4,586,251, respectively.
Background
IBM is a multinational corporation that is also the largest industrial research organization in the world. Today, the companyโs core focus is on software, hardware, and middleware products as well as consultancy and hosting services.
IBM is synonymous with innovation and has a long and successful history. Some of this history is explained below.
Founding and early years
IBM was founded in 1911 as the Computing-Tabulating-Recording Company (CTR). CTR was in fact a holding company of four separate manufacturers that were amalgamated via stock acquisition by Charles R Flint.
The four companies included:
International Time Recording Company โ a producer of time-keeping systems.
Computing Scale Company โ a producer of scales and other mechanical equipment.
Tabulating Machine Company โ this firm produced punch card tabulating machines used to process data, and
Bundy Manufacturing Company โ a manufacturer of time clocks and various other time-keeping devices.
CTR was renamed International Business Machines Corporation in 1924 and was headed by Thomas Watson. By this time, IBMโs business had expanded both functionally and geographically after three new factories were constructed in Europe.
Product expansion and evolution
Under Watson’s leadership, IBM became the primary supplier of punch card tabulation systems. But what made the company stand out was a skilled and disciplined marketing department that could adapt the system to the particular needs of the customer.
IBM expanded into electric typewriters in 1933 and later produced electromechanical calculators for the war effort that were the precursors to computers. However, it was not until Thomas Watson Jr. took over the company in 1952 that IBM decided to focus its efforts on this new and exciting field.
That same year, it released the IBM 701, the first large computer built with vacuum tubes. With the ability to execute 17,000 instructions per second, the 701 was used for government and research purposes but was later used by businesses for payroll and inventory management.
Computer market dominance
By the 1960s, IBM produced 70% of the world’s computers and as many as 80% of those used in the United States. IBM achieved this dominant position because it was a large company that could afford to invest in research and development. It also utilized its prior marketing expertise and made a commitment to service and repair its own equipment.
The System/360 was introduced in 1964, a โfamilyโ of computers with interchangeable software and equipment that was a bold departure from existing one-size-fits-all mainframes. In 1969, IBM started selling its components individually instead of in packages.
IBM and the PC market
Despite its success to date, IBM was unable to use its size and credentials to dominate the PC market. The company entered in 1981 with the IBM Personal Computer, but new semiconductor โ as explored in the economics of AI compute infrastructure โ chip technology meant smaller companies could enter and exploit advances in computer networks, graphics, and workstations.
Over the 1990s and 2000s, IBM lost market dominance and started to downsize its operations. The company sold its magnetic hard drive business to Hitachi in 2002 and its PC division to Lenovo in 2005. It also purchased software manufacturers Lotus Development Corp. in 1995 and Tivoli Systems in 1996.
In the process, IBM moved away from commodity product manufacturing to focus on computer services, software, supercomputers, and scientific research. The companyโs services segment quickly became a cash cow with growth of 20% per year, but new CEO Louis V. Gerstner resisted calls to split IBM into separate, independent companies.
In 1997, IBMโs reputation as a supercomputer developer was cemented when its Deep Blue computer beat chess champion Garry Kasparov in a match. The companyโs supercomputer heritage, proven track record in research and innovation, and focus on integrated services continue to be hallm โ as explored in the intelligence factory race between AI labs โ arks today.
Key takeaways:
IBM is a multinational corporation that is also the largest industrial research organization in the world. Today, the companyโs core focus is on software, hardware, and middle products as well as consultancy and hosting services.
By the 1960s, IBM produced 70% of the world’s computers and as many as 80% of those used in the United States. The company reached this position with a significant investment in R&D, marketing expertise, and a commitment to repair its own products.
Despite its prior success, IBM was unable to use its size and credentials to dominate the PC market. In response, the company sold off some businesses, acquired others, and transitioned from a commodity product manufacturer to one with a focus on computer services, software, supercomputers, and scientific research.
Key Highlights
Ownership and Shareholders:
IBM is primarily owned by institutional investors, with Vanguard Group, BlackRock, and State Street being the top three.
Vanguard Group owns 8.86% of IBM’s shares, BlackRock owns 8.0%, and State Street owns 5.93%.
The top individual shareholders include Arvind Krishna (IBM’s CEO), Michelle H. Browdy (senior vice president), and James J. Kavanaugh (responsible for financial operations).
Board members Alex Gorsky and Gary Cohn also hold shares, though fewer than the top three shareholders.
Company Background:
IBM, founded in 1911 as the Computing-Tabulating-Recording Company (CTR), has a rich history and is known for its innovation.
The company’s focus has shifted over the years to software, hardware, middleware products, and consultancy services.
Founding and Early Years:
IBM’s predecessor, CTR, was formed by merging four separate manufacturers.
These manufacturers were involved in time-keeping systems, scales, punch card tabulating machines, and time clocks.
The company was renamed International Business Machines Corporation (IBM) in 1924 under the leadership of Thomas Watson.
Product Expansion and Evolution:
Under Thomas Watson’s leadership, IBM became a primary supplier of punch card tabulation systems.
IBM expanded into electric typewriters in 1933 and produced electromechanical calculators for the war effort.
The company’s focus on computers intensified in 1952 under Thomas Watson Jr.
Computer Market Dominance:
By the 1960s, IBM had a dominant position in the computer market, producing a large portion of the world’s computers.
IBM’s System/360, introduced in 1964, offered interchangeable software and equipment.
The company’s commitment to R&D, marketing, and service contributed to its success.
IBM and the PC Market:
Despite earlier dominance, IBM couldn’t dominate the PC market due to new chip technology and smaller competitors.
IBM entered the PC market in 1981 but faced competition from companies exploiting advances in networking and graphics.
Over the 1990s and 2000s, IBM transitioned from commodity product manufacturing to focus on services, software, supercomputers, and research.
Transition and Innovations:
IBM sold its magnetic hard drive business and PC division, focusing on services and software.
The company’s services segment became a significant source of revenue.
In 1997, IBM’s supercomputer Deep Blue defeated chess champion Garry Kasparov, highlighting its expertise in research and innovation.
Current Focus:
Presently, IBM continues to focus on software, hardware, middleware, consultancy, and hosting services.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
IBM Business Model →In 2018, revenue was $80 billion.
Revenue decreased to $77 billion in 2019.
In 2020, revenue dropped further to $73.62 billion.
The revenue saw a significant decline in 2IBM Revenue →IBM Profits →2019: Net income increased from $8.73 billion in 2018 to $9 billion, resulting in a 3.09% increase year over year.
2020: Net income decreased to $5.59 billion, reflectingIBM Cost Structure →Software:
Generated $25 billion in revenue.
Contributed $19.94 billion in gross profit.
Consulting:
Produced $19.1 billion in revenue.
Accounted for $4.86 billion in gr
