IBM vs NRILY: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: IBM is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. IBM and NRILY share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined IBM and NRILY exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

International Business Machines (IBM) is one of the oldest and largest technology companies, now focused on enterprise software, consulting, and infrastructure. Its strategy centers on hybrid cloud and AI, anchored by Red Hat (the open-source software it acquired) and its watsonx AI platform. IBM's Software segment sells automation, data, security, and hybrid-cloud software, increasingly on a recurring subscription basis. Consulting provides large-scale technology and business services, helping enterprises modernize and adopt AI. Infrastructure includes IBM's mainframe systems (the zSystems that run mission-critical workloads for banks and large enterprises) and related storage. IBM makes money from a mix of recurring software, services contracts, and hardware tied to mainframe cycles. After years of slow growth, IBM has repositioned around hybrid cloud and AI, divested legacy businesses (spinning off Kyndryl), and emphasized recurring revenue and free cash flow. Founded in 1911 and headquartered in Armonk, New York, IBM is a mature, dividend-paying enterprise technology company.

Full IBM guide

Nomura Research Institute, Ltd. (NRI) builds, runs and consults on information systems for large Japanese companies and government bodies. It reports four segments. Financial IT Solutions is the largest, with ~¥405 billion of revenue in the fiscal year ended March 31, 2026 (FY3/2026), serving securities firms, insurers and banks with custom systems and with shared platforms that many clients run on at once, such as THE STAR for brokerage back offices, T-STAR for asset managers and BESTWAY for bank fund sales. Industrial IT Solutions (~¥280 billion) serves distribution, manufacturing, services and the public sector. IT Platform Services (~¥222 billion, much of it internal to the other segments) runs data centers, cloud and security, and Consulting (~¥69 billion) is the think-tank and strategy arm. Group revenue was ¥814.7 billion, up 6.5%, and overseas revenue was only ~13% of the total.

Full NRILY guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• IBM drivers: Hybrid cloud with Red Hat; Enterprise AI with watsonx.
• NRILY drivers: Financial IT and shared platforms; AI as a product and as a cost lever.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: IBM is a mature company that has struggled to grow revenue much above low single digits, so the story depends on the higher-growth software and AI mix offsetting slower legacy areas. For NRILY, the most visible risk is that NRI's acquisitions abroad keep disappointing: the ~¥97 billion of FY3/2026 impairments at NRI Australia and Core BTS wiped out most of that year's reported profit, and the new targets of ~¥120 billion of overseas revenue at a ~5% margin still have to be delivered by businesses that shrank last year.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick IBM if you believe its drivers more; NRILY if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the IBM and NRILY guides.

IBM. IBM trades at a valuation that reflects a mature enterprise technology company with modest revenue growth but strong, dependable free cash flow and a high dividend. The market increasingly prices in the higher-growth software and AI mix and the hybrid-cloud strategy, which has lifted sentiment from IBM's lower-growth past. It remains valued more as a cash-flow and income story than a high-growth name.

NRILY. The reported numbers for FY3/2026 look worse than the business underneath them. Operating profit of ¥58.3 billion and earnings per share of ¥26.62 include ~¥97 billion of non-cash impairments, while business profit, which excludes those one-offs, grew 16.3% and operating cash flow rose 13.4% to ¥147.6 billion. Guidance for FY3/2027 implies a return to ~¥175 billion of operating profit and basic EPS of ~¥207, close to the run rate the June 2026 quarter suggested (EPS of ¥51.42 for three months). A shrinking share count from buybacks and cancellations adds to per-share growth. All figures are in yen; NRILY's dollar price moves with both the Tokyo share price and the exchange rate.

Headline figures (approximate, early 2026): IBM shows revenue (ttm) ~$63 billion, operating margin ~15%, net income (ttm) ~$7 billion, p/e (ttm) ~25x; NRILY shows revenue (fy3/2026) ~¥814.7B (+6.5%), revenue (ttm to june 2026) ~¥829B, business profit (fy3/2026, excl. impairments) ~¥156.7B (19.2% margin), operating profit guidance (fy3/2027) ~¥175B on ~¥850B revenue.

IBM and NRILY are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined IBM and NRILY exposure against your real portfolio. It is not an investment adviser.