<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
IBM CORPORATION'S FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED
MARCH 31, 1997 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-31-1997
<PERIOD-END>                               MAR-31-1997
<CASH>                                                  5,959
<SECURITIES>                                              504
<RECEIVABLES>                                          15,739
<ALLOWANCES>                                                0
<INVENTORY>                                             5,786
<CURRENT-ASSETS>                                       37,320
<PP&E>                                                 41,010
<DEPRECIATION>                                         23,948
<TOTAL-ASSETS>                                         76,527
<CURRENT-LIABILITIES>                                  31,241
<BONDS>                                                     0
<PREFERRED-MANDATORY>                                       0
<PREFERRED>                                               253
<COMMON>                                                7,906
<OTHER-SE>                                             11,792
<TOTAL-LIABILITY-AND-EQUITY>                           76,527
<SALES>                                                 7,761
<TOTAL-REVENUES>                                       17,308
<CGS>                                                   5,244
<TOTAL-COSTS>                                          10,716
<OTHER-EXPENSES>                                        4,753
<LOSS-PROVISION>                                            0
<INTEREST-EXPENSE>                                        172
<INCOME-PRETAX>                                         1,852
<INCOME-TAX>                                              657
<INCOME-CONTINUING>                                     1,195
<DISCONTINUED>                                              0
<EXTRAORDINARY>                                             0
<CHANGES>                                                   0
<NET-INCOME>                                            1,195
<EPS-PRIMARY>                                            1.19
<EPS-DILUTED>                                            1.16