International Business Machines stock split: what it means for traders

IBM has been part of the US market landscape for generations, and its share activity reflects that long history. Stock splits played a recurring role in the company’s earlier decades, offering insight into how IBM has managed its share structure through periods of technological and strategic change.

By Dan Mitchell4 hours ago

International Business Machines (IBM) has been a core part of the US equity market for more than a century, reshaping its business through cycles of hardware, software and, more recently, cloud and AI innovation. Its share structure has changed over time too, including several forward stock splits in the latter half of the 20th century. While such splits were once common among large US companies, IBM hasn’t carried out a traditional retail-focused split in more than two decades.

International Business Machines (IBM) live share price

Past performance is not a reliable indicator of future results.

What is a stock split?

A stock split is a corporate action that increases the number of a company’s shares while reducing the price per share proportionally. The company’s overall market value remains the same at the point of the split, and each investor’s holding keeps its total value.

For example, in a 2-for-1 split, each share becomes two, and the share price adjusts accordingly.

Companies may use splits to keep their share price within a range they believe supports liquidity or broadens ownership. A split doesn’t affect underlying fundamentals such as revenue, profits or cash flow, and it doesn’t directly influence valuation.

IBM’s latest stock split

IBM’s most recent traditional stock split was a 2-for-1 action payable on 26 May 1999, with a record date of 10 May 1999. IBM notes in its investor materials that this was its last classic split.

Some financial datasets reference a 2021 adjustment as a 'split', but this was a technical adjustment rather than a retail-oriented forward split. It didn’t reflect a continuation of IBM’s historical splitting pattern and was linked to structural changes rather than accessibility.

Why did IBM conduct a share split?

At the time of the 1999 split, IBM stated that the adjusted price range would make the shares more attractive to a broader set of investors, including individuals. Many large US companies used similar actions to support liquidity and maintain what they viewed as accessible price levels.

A split doesn’t alter a shareholder’s proportional ownership or change market capitalisation, but it can encourage trading activity if more market participants find the adjusted price workable.

Will IBM split again in 2026?

As of 16 December 2025, IBM hasn’t announced any stock split for 2025 or 2026. Any speculation about a future split remains just that – speculation. The company’s standing statement still identifies the 1999 split as its last traditional one.

Companies may revisit splits when share prices rise significantly or if they aim to broaden ownership. For IBM, no such plan has been communicated. Any future decision would depend on its strategic priorities, capital structure and broader market conditions.

IBM stock split history

IBM has carried out several forward splits over the decades. While databases may list different totals due to the inclusion of older stock dividends or fractional adjustments, they generally align on the core retail-style splits.

Date	Ratio	Notes
27 May 1999	2:1	Last traditional forward split (payable 26 May 1999).
28 May 1997	2:1	Preceded the 1999 split.
1 June 1979	4:1	One of IBM’s larger historical splits.
29 May 1973	approx. 5:4 (1.25:1)	Fractional forward split.
24 April 1968	2:1	Classic two-for-one split.

IBM notes that the 1999 split was its 15th, though different record-keeping approaches may count earlier stock dividends differently.

Past performance is not a reliable indicator of future results. 

Latest earnings: IBM FY2025 results

IBM’s latest reported figures cover Q3 FY2025 to September 2025. They reflect the ongoing influence of the company’s cloud, AI and automation strategy.

Key figures include:

Revenue of about $16.3bn, roughly 9% higher year-on-year.
Adjusted earnings of $2.65 per share, around 15% higher than the same period a year earlier.
Software revenue of roughly $7.2bn, reflecting around 10% growth.
An AI 'book of business' exceeding $9.5bn across consulting and software.
A raised full-year outlook, targeting more than 5% constant-currency revenue growth and approximately $14bn in free cash flow (up from a prior $13.5bn expectation).

These figures follow several years of portfolio reshaping, including cloud-focused acquisitions, hybrid cloud expansion and increased emphasis on data-led consulting.

Outlook and upcoming developments

IBM continues to focus on hybrid cloud, AI, data and automation. In 2025 it launched a new generation of IBM Z mainframes, often referred to as z17, designed to support enterprise workloads where AI, security and large-scale processing intersect.

The company is also progressing integration of recent acquisitions. HashiCorp, a $6.4bn deal aimed at strengthening IBM’s hybrid cloud and infrastructure automation capabilities, was expected to close in early 2025 and contribute to IBM’s platform-led approach.

Across consulting, IBM has indicated that many AI projects are moving from pilot to production stages. This shift may support recurring revenue and reinforce demand for IBM’s software portfolio.

IBM’s outlook statements emphasise operational discipline, innovation in AI-enabled services and scaling of its cloud-based solutions. They haven’t included any reference to potential stock splits.

Summary

IBM’s last traditional stock split was a 2-for-1 split in 1999.

No stock split has been announced for 2025 or 2026.

The 2021 technical adjustment referenced by some data providers wasn’t a classic forward split.

FY2025 results show year-on-year growth in revenue, earnings, software demand and AI-related services.

IBM continues to prioritise hybrid cloud, automation and AI, supported by new product cycles and acquisitions.

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FAQ

When did IBM stock split?

IBM’s most recent traditional stock split was a 2-for-1 split declared in 1999. The record date was 10 May 1999, and shareholders received the additional shares on 26 May 1999. Most financial databases list the split as effective around 26–27 May, when the shares began trading on a split-adjusted basis.

When did the IBM stock split take effect?

For the 1999 split, shareholders recorded at the close of business on 10 May 1999 received one additional share for every share held. Trading moved to the new, adjusted price from 26–27 May 1999. In the period between the announcement and the payable date, IBM traded 'regular way' at the pre-split price and 'when-issued' at a price reflecting the forthcoming adjustment, before transitioning to the post-split price in late May.

Did IBM have a stock split before?

Yes. IBM has undertaken a range of stock splits and stock dividends over many decades, including notable actions in the 1960s, 1970s and late 1990s. The company identifies the 1999 split as its 15th, acknowledging that earlier stock dividends and fractional adjustments are counted differently across data providers.

How many times has IBM stock split?

IBM considers the May 1999 split its 15th. Third-party datasets that focus on post-1960 activity typically report 7–8 forward splits, and some also record a small-ratio adjustment in November 2021. The variation comes from different approaches to counting fractional changes and historic stock dividends.

How much was IBM stock after the split?

In a standard 2-for-1 split, each share’s price is adjusted to roughly half its previous level while the overall value of the holding remains the same. IBM illustrates this with a simple example of a move from 100 USD to about 50 USD per share. Some data providers also note that the 523-for-500 technical adjustment in November 2021 reduced the reference price from around 127 USD to about 104 USD on an adjusted basis; however, this was a structural adjustment, not a conventional forward split.

Why did IBM split its stock?

IBM stated that the 1999 split aimed to bring the share price into a range viewed as more accessible to a wider group of investors, particularly individuals. Splits of this kind are generally intended to support liquidity and perceived accessibility. They don’t change a company’s total market value or a shareholder’s proportional ownership.

Will IBM split again?

As at 16 December 2025, IBM hasn’t announced any new stock split for 2025 or 2026. Any discussion of a future split is speculative, as the company continues to reference 1999 as its most recent traditional forward split.

What was the most recent IBM stock split date?

IBM’s latest classic stock split was the 2-for-1 split with a record date of 10 May 1999 and a payable date of 26 May 1999. Market-data providers also record a small-ratio adjustment effective 4 November 2021, although this reflected technical changes linked to corporate restructuring rather than a retail-oriented forward split.

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