<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM IBM
CORPORATION'S FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>                                   1,000,000

                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-2000
<PERIOD-END>                               MAR-31-2000
<CASH>                                           3,285
<SECURITIES>                                       321
<RECEIVABLES>                                   19,735
<ALLOWANCES>                                         0
<INVENTORY>                                      5,070
<CURRENT-ASSETS>                                39,139
<PP&E>                                          39,117
<DEPRECIATION>                                  22,158
<TOTAL-ASSETS>                                  82,764
<CURRENT-LIABILITIES>                           35,611
<BONDS>                                              0
<PREFERRED-MANDATORY>                           12,449
<PREFERRED>                                          0
<COMMON>                                           247
<OTHER-SE>                                       6,822
<TOTAL-LIABILITY-AND-EQUITY>                    82,764
<SALES>                                          7,712
<TOTAL-REVENUES>                                19,348
<CGS>                                            5,593
<TOTAL-COSTS>                                   12,337
<OTHER-EXPENSES>                                 4,878
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 152
<INCOME-PRETAX>                                  2,170
<INCOME-TAX>                                       651
<INCOME-CONTINUING>                              1,519
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,519
<EPS-BASIC>                                       0.85
<EPS-DILUTED>                                     0.83