<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
IBM CORPORATION'S FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED
DECEMBER 31, 1994 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1994
<PERIOD-END>                               DEC-31-1994
<CASH>                                           7,922
<SECURITIES>                                     2,632
<RECEIVABLES>                                   14,018
<ALLOWANCES>                                         0
<INVENTORY>                                      6,334
<CURRENT-ASSETS>                                41,338
<PP&E>                                          44,820
<DEPRECIATION>                                  28,156
<TOTAL-ASSETS>                                  81,091
<CURRENT-LIABILITIES>                           29,226
<BONDS>                                              0
<COMMON>                                         7,308
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                      1,081
<OTHER-SE>                                      15,024
<TOTAL-LIABILITY-AND-EQUITY>                    81,091
<SALES>                                         32,344
<TOTAL-REVENUES>                                64,052
<CGS>                                           21,300
<TOTAL-COSTS>                                   38,768
<OTHER-EXPENSES>                                20,279
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               1,227
<INCOME-PRETAX>                                  5,155
<INCOME-TAX>                                     2,134
<INCOME-CONTINUING>                              3,021
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     3,021
<EPS-PRIMARY>                                     5.02
<EPS-DILUTED>                                     4.95