<ARTICLE>                 5
  <LEGEND>
  THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
  IBM CORPORATION'S FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED
  SEPTEMBER 30, 1994 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
  SUCH FINANCIAL STATEMENTS.
  </LEGEND>
  <MULTIPLIER>              1,000,000
         
                                 
  <PERIOD-TYPE>                     9-MOS
  <FISCAL-YEAR-END>                          DEC-31-1994
  <PERIOD-END>                               SEP-30-1994
  <CASH>                                                  9,322
  <SECURITIES>                                            1,482
  <RECEIVABLES>                                          12,079
  <ALLOWANCES>                                                0
  <INVENTORY>                                             7,004
  <CURRENT-ASSETS>                                       40,150
  <PP&E>                                                 47,433
  <DEPRECIATION>                                         31,095
  <TOTAL-ASSETS>                                         79,068
  <CURRENT-LIABILITIES>                                  28,280
  <BONDS>                                                     0
  <COMMON>                                                7,273
  <PREFERRED-MANDATORY>                                       0
  <PREFERRED>                                             1,091
  <OTHER-SE>                                             14,099
  <TOTAL-LIABILITY-AND-EQUITY>                           79,068
  <SALES>                                                21,716
  <TOTAL-REVENUES>                                       44,156
  <CGS>                                                  14,647
  <TOTAL-COSTS>                                          26,958
  <OTHER-EXPENSES>                                       14,214
  <LOSS-PROVISION>                                            0
  <INTEREST-EXPENSE>                                      1,010
  <INCOME-PRETAX>                                         3,082
  <INCOME-TAX>                                            1,292
  <INCOME-CONTINUING>                                     1,790
  <DISCONTINUED>                                              0
  <EXTRAORDINARY>                                             0
  <CHANGES>                                                   0
  <NET-INCOME>                                            1,790
  <EPS-PRIMARY>                                            2.96
  <EPS-DILUTED>                                            2.92