The Information Technology 100
International Business Machines
Since its near meltdown in the mid-1990s, IBM has done a noteworthy job of keeping legacy businesses such as the mainframe going even while it builds new information technology business services, which now account for half the company’s revenues. CEO Sam Palmisano sold IBM's PC division to China's Lenovo late last year, clearing the decks for even more focus on business services. But disappointing first-quarter earnings have set the company back. It's now scrambling to improve sales of short-term IT contracts and to goose hardware sales, even while it eliminates up to 13,000 positions. After nearly hitting $100 early in the year, the company's stock has been trading in the mid 70s since the earnings stumble. Don't expect much upside until Palmisano shows he has the business back on track.
|Return on Equity||27.6%|
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All figures are for the most recent available 12 months.
* Latest available data for the 12-month period ended Dec. 31, Jan. 31, Feb. 29, Mar. 31, or Apr. 30. For companies that do not report quarterly, the most recent annual data were used.
Data provided by Standard & Poor's Compustat, BusinessWeek
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