<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