<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM IBM
CORPORATION'S FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED
DECEMBER 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                           7,687
<SECURITIES>                                       450
<RECEIVABLES>                                   16,515
<ALLOWANCES>                                         0
<INVENTORY>                                      5,870
<CURRENT-ASSETS>                                40,695
<PP&E>                                          41,893
<DEPRECIATION>                                  24,486
<TOTAL-ASSETS>                                  81,132
<CURRENT-LIABILITIES>                           34,000
<BONDS>                                              0
<PREFERRED-MANDATORY>                            7,752
<PREFERRED>                                          0
<COMMON>                                           253
<OTHER-SE>                                      13,623
<TOTAL-LIABILITY-AND-EQUITY>                    81,132
<SALES>                                         36,316
<TOTAL-REVENUES>                                75,947
<CGS>                                           23,396
<TOTAL-COSTS>                                   45,408
<OTHER-EXPENSES>                                21,943
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 716
<INCOME-PRETAX>                                  8,587
<INCOME-TAX>                                     3,158
<INCOME-CONTINUING>                              5,429
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     5,429
<EPS-PRIMARY>                                    10.24
<EPS-DILUTED>                                    10.02