History of IBM: Company timeline, milestones & facts
It was the classic battle of man versus machine.
On May 3, 1997, world chess champion Garry Kasparov faced off with IBM's (IBM) Deep Blue supercomputer in New York City.
Kasparov, a Russian chess grandmaster, had previously beaten an earlier version of the system in a six-game match in Philadelphia in 1996, though the computer managed to win one game.
That victory "was very important to us to show that we were on the right track," Murray Campbell, a member of the Deep Blue development team, said in a 2017 interview with Scientific American in 2017.
Now, an upgraded Deep Blue was set for a rematch with the world's top-ranked player - and history was about to be made.
"By the time of our final match in 1997, we had made enough improvements to the system based on our experience that we were able to win," Campbell said.
And that's exactly what happened. On May 11, Deep Blue became the first computer to defeat a reigning world chess champion under tournament conditions.
The supercomputer's victory is just one of many milestones in IBM's 114-year history, which dates back to June 16, 1911, when three firms came together to form the Computing-Tabulating-Recording-Company in Endicott, NY.
Quick facts about IBM
- The company employs roughly 270,000 to 286,800 people worldwide.
- IBM has completed 15 stock splits and 26 stock dividend distributions, with its last traditional split occurring in 1999.
- The company was added to the Dow Jones Industrial Average for the first time on May 26, 1932, but was removed in 1939. It was re-added to the index on June 29, 1979, replacing Chrysler.
IBM's founding & early years
Thomas J. Watson Sr. took over in 1914, transforming the company from a manufacturer of punched-card machines, scales, and time clocks into a leader in tabulating and computing systems.
"He embraced automation, mechanization and data-recording trends emerging at the turn of the century to meet the growing need across society for better ways to collect and manage information," IBM said.
On Feb. 14, 1924, the company was rebranded as International Business Machines.
Watson, who coined the company's "THINK" slogan, introduced initiatives such as hiring disabled workers and promoting employee education.
His "Open Door" policy allowed employees to communicate directly with any level of management - including Watson himself.
Nearly a century later, the company named its AI platform IBM Watson in his honor.
Related: IBM's logo over the years: A timeline of ambition
IBM Watson gained widespread attention in 2011 when it defeated human champions on the TV quiz show Jeopardy in another man-versus-machine confrontation.
IBM went roaring into the 20th Century, developing technologies such as the 305 RAMAC, the first commercial hard disk drive, and the Fortran programming language, as the company became synonymous with "computer."
In 1956, computer scientist Arthur L. Samuel created an early example of artificial intelligence when he programmed an IBM system to play - and improve at - checkers.
The company was nicknamed "Big Blue" due to its dominance in the industry, as well as the pervasive blue color of its corporate logo, employee suits, and mainframe computers.
From 1982 to 1988, IBM was the largest contributor to the S&P 500 each year, CNBC reported.
IBM's growth and challenges
But then Big Blue ran into some big problems.
A pivotal 1980 deal with Microsoft to supply the operating system for the IBM PC did not include exclusive rights, allowing Microsoft to license the software broadly and dominate the market.
IBM's use of off-the-shelf components and open architecture also enabled competitors such as Compaq and Dell (DELL) to produce cheaper clones, eroding its market share.
Related: Who owns IBM? Top insiders & institutional shareholders
The company failed to adapt from expensive mainframes to the personal computer and client-server revolutions. In 1993, IBM posted an $8 billion loss - the largest in U.S. corporate history at the time.
CEO Lou Gerstner is widely credited with turning the company around, increasing its market value significantly by the time he stepped down in 2002.
IBM's emergence from its "lost decade"
However, Gerstner was criticized for cutting tens of thousands of jobs, and some analysts argue that his shift toward services and asset sales contributed to longer-term competitive challenges.
IBM later entered what some observers called a "lost decade" from roughly 2012 to 2020, as it fell behind Amazon (AMZN), Microsoft (MSFT), and Google (GOOG) in cloud computing and artificial intelligence under CEO Ginni Rometty.
More Dow company histories:
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- History of Microsoft: Company timeline & facts
During her eight-year tenure, IBM's stock declined 24%, CNBC reported, while annual revenue fell from $107 billion in 2011 to about $77 billion in 2019.
Arvind Krishna, a longtime IBM executive who joined the company in 1990 and held multiple R&D leadership roles, became CEO in 2020.
He led IBM's $34 billion acquisition of Red Hat and has focused on hybrid cloud, artificial intelligence, and quantum computing.
"At IBM, we want to leverage AI to become the leanest, most nimble, and most productive company we can be," he said during an interview with McKinsey in January 2026.
IBM reported net income of $10.6 billion in 2025, up roughly 77%, with revenue of $67.5 billion, driven by software growth and AI demand.
Related: Is IBM a good investment in 2026? Its buy-and-hold prospects explained
Analysts remain cautiously optimistic about IBM, citing strength in AI-driven software and infrastructure, while flagging slower growth in consulting and risks to legacy businesses.
"Whenever there's uncertainty there's opportunity, and it's our role as leaders to help guide our people through it and use it to take our clients to a better place," Krishna told McKinsey.
A timeline of IBM's major milestones
June 16, 1911: three firms came together to form the Computing- Tabulating-Recording-Company in Endicott, NY
February 14, 1924: The company changes its name to International Business Machines.
Sept. 27, 1946: The company announces IBM 603 Electronic Multiplier, the first mass-produced electronic calculator.
April 29, 1952: The IBM 701, the company's first production-line commercial computer, is announced.
Sept. 14, 1956: The IBM 305 RAMAC - the first commercial computer to feature a moving-head hard disk drive - is announced.
April 19, 1957: IBM researchers successfully run the first FORTRAN (Formula Translation) program.
April 7, 1964: IBM announces the System/360 (S/360), the first family of computers sharing the same software and peripherals.
Jan. 3, 1971: IBM introduces the floppy disc.
Related: How many employees work at IBM in 2026? Job locations & recent layoffs explained
June 26, 1974: The first UPC barcode developed by IBM engineer George Laurer is officially scanned at a Marsh Supermarket in Troy, Ohio. A 10-pack of Wrigley's Juicy Fruit gum is the first product scanned.
June 29, 1979: IBM is added to the Dow Jones Industrial Average, replacing Chrysler.
Aug. 12, 1981: The IBM Personal Computer (Model 5150) is introduced at a press conference in New York City with a base price of $1,565.
May 11, 1997: IBM's Deep Blue supercomputer defeats world chess champion Garry Kasparov in a six-game match.
Feb. 14-16, 2011: IBM Watson wins the quiz show Jeopardy against two human competitors.
July 9, 2019: IBM closes its acquisition of Red Hat, the world's leading provider of enterprise open-source software solutions.
April 6, 2020: Arvind Krishna becomes the CEO of IBM after his appointment is announced in January.
May 9, 2023: IBM launches watsonx, an enterprise-ready AI and data platform
Related: History of Apple: Company timeline and facts
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This story was originally published April 28, 2026 at 9:12 AM.