<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM IBM
CORPORATION'S FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 1996 
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               JUN-30-1996
<CASH>                                           5,896
<SECURITIES>                                       481
<RECEIVABLES>                                   16,246
<ALLOWANCES>                                         0
<INVENTORY>                                      6,720
<CURRENT-ASSETS>                                38,936
<PP&E>                                          42,810
<DEPRECIATION>                                  26,473
<TOTAL-ASSETS>                                  77,474
<CURRENT-LIABILITIES>                           30,629
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        253
<COMMON>                                         7,921
<OTHER-SE>                                      13,354
<TOTAL-LIABILITY-AND-EQUITY>                    77,474
<SALES>                                         16,284
<TOTAL-REVENUES>                                34,742
<CGS>                                           10,720
<TOTAL-COSTS>                                   20,782
<OTHER-EXPENSES>                                10,228
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 354
<INCOME-PRETAX>                                  3,721
<INCOME-TAX>                                     1,600
<INCOME-CONTINUING>                              2,121
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     2,121
<EPS-PRIMARY>                                     3.92
<EPS-DILUTED>                                     3.84