IBM (International Business Machines) Moat Score: 7/10 (As of Jul. 03, 2026)


IBM International Business Machines Corp IBM
81 GF Score
Price $289.52
GF Value $239.14
Valuation Modestly Overvalued
! 3 Warning Signs
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What is International Business Machines Moat Score?

International Business Machines IBM +1.14% 81 Moat Score is 7 as of Jul. 03, 2026. GuruFocus rates IBM with a GF Score™ of 81/100 and a GF Value™ of $239.14 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,844 Software companies, International Business Machines ranks better than 99.26% on this metric.

International Business Machines has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

International Business Machines has Wide Moat: IBM possesses a wide moat due to its strong brand, extensive patent portfolio, and significant customer switching costs. Its leadership in enterprise solutions and cloud computing provides durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes International Business Machines might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

International Business Machines  (NYSE:IBM) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

International Business Machines Moat Score Related Terms

IBM vs ACN, FISV, FIS: Moat Score Comparison

For the Information Technology Services subindustry, International Business Machines's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

International Business Machines Moat Score vs Software Industry

For the Software industry and Technology sector, International Business Machines's Moat Score distribution charts can be found below:

* The bar in red indicates where International Business Machines's Moat Score falls into.


IBM
81GF Score
International Business Machines Corp IBM
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 7 mean?
International Business Machines (IBM) has a Moat Score of 7 as of Jul. 03, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, International Business Machines ranks #21 out of 2844 companies in the Software industry, placing it in the top 0.7%.
Is International Business Machines' Moat Score too high?
International Business Machines' current Moat Score is 7. Based on the distribution chart, International Business Machines ranks #21 out of 2844 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, International Business Machines has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' Moat Score compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #21 out of 2844 companies for Moat Score. This places International Business Machines in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. International Business Machines's current Moat Score is 7. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is International Business Machines stock overvalued right now?
Based on GuruFocus' analysis, International Business Machines (IBM) is currently considered Modestly Overvalued. The stock's GF Value™ is $239.14, compared to a current price of $289.52 — trading 21.1% above its estimated fair value. The current Moat Score is 7. International Business Machines' overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For International Business Machines (IBM), the current Moat Score is 7 as of Jul. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is International Business Machines (IBM) Overvalued in 2026?

Based on GuruFocus' analysis, International Business Machines stock appears to be overvalued. The current stock price of $289.52 is trading 21.1% above its estimated GF Value™ of $239.14. GuruFocus considers International Business Machines to be Modestly Overvalued.

Key valuation signals for IBM:

  • Moat Score: 7
  • GF Value™: $239.14 vs. price of $289.52 (21.1% above fair value)
  • GF Score™: 81/100 with 3 warning signs

No single metric tells the full story. See the IBM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

International Business Machines Business Description

Address One New Orchard Road, Armonk, NY, USA, 10504
Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which includes 95% of all Fortune 500 companies. IBM's products, including Red Hat, watsonx, and mainframes, handle some of the world's most important data workloads in areas like finance and retail.
81GF Score

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$289.52
Price
$239.14
GF Value