IBM stock experienced a significant increase in 2025, with shares rising 35% and surpassing the performance of the S&P 500. The company's focus on hybrid cloud computing and enterprise AI has contributed to this growth.
IBM has secured $9.5 billion in AI-related business, with approximately 80% coming from consulting signings. SNS Insider projects the AI consulting market will expand from $8.75 billion in 2024 to $49.1 billion by 2032.
In quantum computing, IBM aims to demonstrate quantum advantage by the end of this year. The company plans to deliver its first fault-tolerant quantum computer by 2029 and scale up these systems for practical applications by 2033 and beyond. Estimates suggest the quantum computing market could reach $97 billion by 2035.
IBM's quarterly dividend is currently $1.68 per share, yielding about 2.2%. The company has paid quarterly dividends continuously since 1916 and has increased its dividend annually for 30 consecutive years.
IBM raised its 2025 free cash flow forecast to $14 billion in October, partly due to AI business success. This results in a price-to-free cash flow ratio of approximately 20.
The Motley Fool Stock Advisor analyst team identified 10 stocks they consider the best for investors to buy now, and International Business Machines was not included. The team noted that Stock Advisor's total average return is 955%, compared to 196% for the S&P 500.