<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM IBM
CORPORATION'S FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1998
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               DEC-31-1998
<CASH>                                           5,375
<SECURITIES>                                       393
<RECEIVABLES>                                   18,958
<ALLOWANCES>                                         0
<INVENTORY>                                      5,200
<CURRENT-ASSETS>                                42,360
<PP&E>                                          44,870
<DEPRECIATION>                                  25,239
<TOTAL-ASSETS>                                  86,100
<CURRENT-LIABILITIES>                           36,827
<BONDS>                                              0
<PREFERRED-MANDATORY>                           10,121
<PREFERRED>                                          0
<COMMON>                                           247
<OTHER-SE>                                       9,065
<TOTAL-LIABILITY-AND-EQUITY>                    86,100
<SALES>                                         35,419
<TOTAL-REVENUES>                                81,667
<CGS>                                           24,214
<TOTAL-COSTS>                                   50,795
<OTHER-EXPENSES>                                21,708
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 713
<INCOME-PRETAX>                                  9,040
<INCOME-TAX>                                     2,712
<INCOME-CONTINUING>                              6,328
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     6,328
<EPS-PRIMARY>                                     6.75
<EPS-DILUTED>                                     6.57