IBM
IBM NYSE IT Consulting & Other Services Financials FY2016–FY2025
IBM's revenue rose 7.6% to $67.5 billion in fiscal 2025. Its net margin was 15.7%, up from 9.6% a year earlier. Free cash flow was $12.1 billion, down 2.4%. It paid out $6.3 billion in dividends and buybacks, 52% of free cash flow. The diluted share count rose 1.2%.
What IBM does
IBM sells software, consulting services and computer hardware to businesses and governments in more than 175 countries. Its products help large organizations run their computer systems across their own data centers and public clouds, a mix known as hybrid cloud, and put artificial intelligence to work in their operations.
IBM reports four segments. Software, the largest, had revenue of $29,962 million in 2025; it includes Red Hat's Linux and OpenShift software, automation and security tools, databases and AI tools, and software for the transaction systems that banks, airlines and retailers depend on. Consulting, with revenue of $21,055 million, helps clients plan and carry out technology projects and runs some of their systems and business processes for them. Infrastructure, with revenue of $15,718 million, sells IBM Z mainframes, Power servers, storage and cloud computing capacity, and maintains clients' equipment. A small Financing segment lends to clients and business partners buying IBM products. IBM names Alphabet, Amazon, Microsoft, Oracle and SAP among its software rivals, Accenture and Capgemini in consulting, and Dell and Hewlett-Packard Enterprise in hardware.
IBM and its wholly owned subsidiaries had about 264,300 employees at the end of 2025. It completed ten acquisitions that year, the largest being HashiCorp, a maker of automation and security software, and announced plans to buy Confluent, which makes software for handling streams of live data.
- Legal name
- INTERNATIONAL BUSINESS MACHINES CORPORATION
- Fiscal year ends
- December 31, 2025
- Latest annual report
- 10-K · Feb 24, 2026
- Accession · CIK
- 0000051143-26-000010
0000051143
Revenue and margins
IBM had $67.5B of revenue in fiscal 2025, up 7.6% on the year before.
Net income and earnings per share
From fiscal 2016 to 2025, diluted EPS grew −1.1% a year. Loss periods are shown in red.
Returns on capital
After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
Cash flow
Free cash flow was $12.1B in fiscal 2025, 17.9% of revenue. Cash from operations minus capital spending.
Dividends, buybacks and share count
IBM returned $6.3B to shareholders in fiscal 2025, 52% of free cash flow. The diluted share count rose 1.2%.
Value IBM yourself
Change the assumptions and see what they imply per share. These are models, not forecasts or price targets — the answer depends entirely on what you put in.
Discounted cash flow
Value per share
—
Adds net cash of −$53.3B and divides by 948.7M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.
Earnings multiple
Value per share
—
Reference multiples: today 21.6x · peers 19.8x · sector 33.5x.
Balance sheet
Cash, debt and the ratios that show how comfortably IBM can carry it.
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | $7.3B | $8.7B | $13.4B | $14.6B | $14.4B |
| Debt incl. finance leases | $58.5B | $55.7B | $63.0B | $60.0B | $67.7B |
| Net debt / EBITDA | 4.1x | 6.6x | 3.4x | 3.7x | 3.1x |
| Debt / equity | 3.1x | 2.5x | 2.8x | 2.2x | 2.1x |
| Interest coverage | 5.2x | 2.0x | 6.4x | 4.4x | 6.3x |
| Current ratio | 0.9x | 0.9x | 1.0x | 1.0x | 1.0x |
| Quick ratio | 0.8x | 0.9x | 0.9x | 1.0x | 0.9x |
| Total assets | $132.0B | $127.2B | $135.2B | $137.2B | $151.9B |
| Total liabilities | $113.0B | $105.2B | $112.6B | $109.8B | $119.1B |
| Shareholders' equity | $18.9B | $21.9B | $22.5B | $27.3B | $32.6B |
| Net debt (− = net cash) | $51.2B | $47.0B | $49.5B | $45.4B | $53.3B |
Insider trades
Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. 'Plan' marks trades under a pre-arranged Rule 10b5-1 plan.
Bought, 12 months
$0.4M
3 insiders
Sold, 12 months
$5.8M
1 insider
Of sales under plans
0%
$0.0M
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Aug 26, 2026 | Robert David ThomasSenior Vice President | Sold | 25,000 | $230.32 | $5.8M | Form 4 |
| Feb 25, 2026 | Michael MiebachDirector | Bought | 434 | $233.33 | $0.1M | Form 4 |
| Feb 25, 2026 | Michelle J HowardDirector | Bought | 50 | $237.83 | $0.0M | Form 4 |
| Jan 30, 2026 | David N FarrDirector | Bought | 1,000 | $304.00 | $0.3M | Form 4 |
Piotroski F-score
Nine pass/fail tests of profitability, funding and efficiency. 8–9 is strong, 0–2 weak.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | ✓ | ✓ | ✓ |
| Cash from operations is positive | ✓ | ✓ | ✓ |
| Return on assets rose | ✓ | ✕ | ✓ |
| Cash from operations exceeds net income | ✓ | ✓ | ✓ |
| Debt fell relative to assets | ✕ | ✓ | ✕ |
| Current ratio rose | ✓ | ✓ | ✕ |
| Share count didn't rise | ✕ | ✕ | ✕ |
| Gross margin rose | ✓ | ✓ | ✓ |
| Revenue rose relative to assets | ✓ | ✕ | ✓ |
| F-score | 7 / 9 | 6 / 9 | 6 / 9 |
| Accruals ratio | −4.9% | −5.5% | −1.8% |
| Altman Z'' | 4.31 | 4.29 | 4.10 |
Similar companies
Each company's latest fiscal year. Fiscal years end in different months, so periods don't line up exactly.
| Company | Market cap | Growth | Op. margin | FCF margin | ROIC | P/E | F-score | |
|---|---|---|---|---|---|---|---|---|
| IBM IBM | $241.8B | 7.6% | — | 17.9% | 15.4% | 21.6x | 6 | |
| Accenture ACN | $154.0B | 6.5% | 15.4% | 15.7% | 30.6% | — | 6 | Compare → |
| Cognizant CTSH | $33.6B | 7.0% | 16.1% | 12.3% | 16.2% | 15.3x | 6 | Compare → |
| Kyndryl KD | $3.3B | 0.2% | — | 2.3% | 7.8% | 39.9x | 6 | Compare → |
| DXC Technology DXC | $2.7B | −1.8% | 7.7% | 8.2% | 9.2% | 21.2x | 7 | Compare → |
10 years of figures
US$ millions unless stated. Hover a ratio's name for its definition.
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | $79.9B | $79.1B | $79.6B | $57.7B | $55.2B | $57.4B | $60.5B | $61.9B | $62.8B | $67.5B |
| Gross profit | $38.5B | $36.9B | $36.9B | $31.5B | $30.9B | $31.5B | $32.7B | $34.3B | $35.6B | $39.3B |
| Research and development | $5.7B | $5.6B | $5.4B | $5.9B | $6.3B | $6.5B | $6.6B | $6.8B | $7.5B | $8.3B |
| Interest expense | $630M | $615M | $723M | $1.3B | $1.3B | $1.2B | $1.2B | $1.6B | $1.7B | $1.9B |
| Pretax income | $12.3B | $11.4B | $11.3B | $7.2B | $2.6B | $4.8B | $1.2B | $8.7B | $5.8B | $10.3B |
| Income tax | $449M | $5.6B | $2.6B | $60.0M | −$1.4B | $124M | −$626M | $1.2B | −$218M | −$242M |
| Net income | $11.9B | $5.8B | $8.7B | $9.4B | $5.6B | $5.7B | $1.6B | $7.5B | $6.0B | $10.6B |
| Diluted EPS | $12.38 | $6.14 | $9.52 | $10.56 | $6.23 | $6.35 | $1.80 | $8.14 | $6.43 | $11.17 |
| Diluted shares | 0.96B | 0.94B | 0.92B | 0.89B | 0.90B | 0.90B | 0.91B | 0.92B | 0.94B | 0.95B |
| Cash flow | ||||||||||
| Cash from operations | $17.1B | $16.7B | $15.2B | $14.8B | $18.2B | $12.8B | $10.4B | $13.9B | $13.4B | $13.2B |
| Capital expenditure | $3.6B | $3.2B | $3.4B | $2.3B | $2.6B | $2.1B | $1.3B | $1.2B | $1.0B | $1.1B |
| Free cash flow | $13.5B | $13.5B | $11.9B | $12.5B | $15.6B | $10.7B | $9.1B | $12.7B | $12.4B | $12.1B |
| Depreciation and amortization | $4.4B | $4.5B | $4.5B | $6.1B | $6.7B | $6.4B | $4.8B | $4.4B | $4.7B | $5.0B |
| Stock-based compensation | $544M | $534M | $510M | $679M | $937M | $982M | $987M | $1.1B | $1.3B | $1.7B |
| Acquisitions | $5.7B | $496M | $139M | $32.6B | $336M | $3.3B | $2.3B | $5.1B | $3.3B | $8.3B |
| Share buybacks | $3.5B | $4.3B | $4.4B | $1.4B | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Dividends paid | $5.3B | $5.5B | $5.7B | $5.7B | $5.8B | $5.9B | $5.9B | $6.0B | $6.1B | $6.3B |
| Dividends and buybacks | $8.8B | $9.8B | $10.1B | $7.1B | $5.8B | $5.9B | $5.9B | $6.0B | $6.1B | $6.3B |
| Balance sheet | ||||||||||
| Cash and short-term investments | $8.5B | $12.6B | $12.0B | $8.9B | $13.8B | $7.3B | $8.7B | $13.4B | $14.6B | $14.4B |
| Total debt | $40.9B | $45.1B | $52.9B | $70.4B | $68.3B | $58.5B | $55.7B | $63.0B | $60.0B | $67.7B |
| Finance lease liabilities | $0.0M | $0.0M | $41.0M | $204M | $91.0M | $99.0M | $239M | $499M | $1.0B | $1.2B |
| Current assets | $43.9B | $49.7B | $49.1B | $38.4B | $39.2B | $29.5B | $29.1B | $32.9B | $34.5B | $36.9B |
| Current liabilities | $36.3B | $37.4B | $38.2B | $37.7B | $39.9B | $33.6B | $31.5B | $34.1B | $33.1B | $38.7B |
| Inventory | $1.6B | $1.6B | $1.7B | $1.6B | $1.8B | $1.6B | $1.6B | $1.2B | $1.3B | $1.2B |
| Property and equipment, net | $10.8B | $11.1B | $10.8B | $10.0B | $6.2B | $5.7B | $5.3B | $5.5B | $5.7B | $5.9B |
| Total assets | $117.5B | $125.4B | $123.4B | $152.2B | $156.0B | $132.0B | $127.2B | $135.2B | $137.2B | $151.9B |
| Total liabilities | $99.1B | $107.6B | $106.5B | $131.2B | $135.2B | $113.0B | $105.2B | $112.6B | $109.8B | $119.1B |
| Shareholders' equity | $18.2B | $17.6B | $16.8B | $20.8B | $20.6B | $18.9B | $21.9B | $22.5B | $27.3B | $32.6B |
| Margins | ||||||||||
| Gross margin | 48.2% | 46.7% | 46.4% | 54.6% | 55.9% | 54.9% | 54.0% | 55.5% | 56.7% | 58.2% |
| EBITDA margin | 21.7% | 20.9% | 20.8% | 25.3% | 19.1% | 21.6% | 11.9% | 23.8% | 19.4% | 25.6% |
| Net margin | 14.9% | 7.3% | 11.0% | 16.3% | 10.1% | 10.0% | 2.7% | 12.1% | 9.6% | 15.7% |
| FCF margin | 16.9% | 17.1% | 14.9% | 21.6% | 28.2% | 18.7% | 15.0% | 20.5% | 19.8% | 17.9% |
| Returns | ||||||||||
| Return on capital | 25.9% | 12.0% | 17.2% | 12.1% | 4.9% | 8.0% | 3.4% | 12.6% | 10.4% | 15.4% |
| Return on capital employed | 16.5% | 14.2% | 13.9% | 8.6% | 3.4% | 5.6% | 2.4% | 10.5% | 7.3% | 11.3% |
| Return on equity | 73.0% | 32.1% | 50.8% | 50.1% | 27.0% | 29.1% | 8.0% | 33.7% | 24.2% | 35.3% |
| Return on assets | 10.4% | 4.7% | 7.0% | 6.8% | 3.6% | 4.0% | 1.3% | 5.7% | 4.4% | 7.3% |
| Growth | ||||||||||
| Revenue growth | −2.2% | −1.0% | 0.6% | −27.5% | −4.4% | 3.9% | 5.5% | 2.2% | 1.4% | 7.6% |
| Net income growth | −10.0% | −51.5% | 51.7% | 8.1% | −40.7% | 2.7% | −71.5% | 357.7% | −19.7% | 75.9% |
| EPS growth | −7.8% | −50.4% | 55.1% | 10.9% | −41.0% | 1.9% | −71.7% | 352.2% | −21.0% | 73.7% |
| FCF growth | −1.2% | −0.2% | −12.2% | 5.3% | 24.8% | −31.1% | −15.3% | 39.6% | −2.3% | −2.4% |
| Share count change | −2.4% | −2.2% | −2.3% | −2.6% | 0.4% | 0.9% | 0.8% | 1.1% | 1.6% | 1.2% |
| Financial health | ||||||||||
| Net debt / EBITDA | 1.9x | 2.0x | 2.5x | 4.2x | 5.2x | 4.1x | 6.6x | 3.4x | 3.7x | 3.1x |
| Debt / equity | 2.2x | 2.6x | 3.2x | 3.4x | 3.3x | 3.1x | 2.5x | 2.8x | 2.2x | 2.1x |
| Interest coverage | 20.6x | 19.5x | 16.7x | 6.4x | 3.0x | 5.2x | 2.0x | 6.4x | 4.4x | 6.3x |
| Current ratio | 1.2x | 1.3x | 1.3x | 1.0x | 1.0x | 0.9x | 0.9x | 1.0x | 1.0x | 1.0x |
| Quick ratio | 1.2x | 1.3x | 1.2x | 1.0x | 0.9x | 0.8x | 0.9x | 0.9x | 1.0x | 0.9x |
| Capital allocation | ||||||||||
| Capex / revenue | 4.5% | 4.1% | 4.3% | 4.0% | 4.7% | 3.6% | 2.2% | 2.0% | 1.7% | 1.6% |
| Stock comp / revenue | 0.7% | 0.7% | 0.6% | 1.2% | 1.7% | 1.7% | 1.6% | 1.8% | 2.1% | 2.5% |
| Payouts / FCF | 64.8% | 73.0% | 85.3% | 56.6% | 37.2% | 54.7% | 65.4% | 47.6% | 49.6% | 51.7% |
| Quality scores | ||||||||||
| Piotroski F-score | 5.0 | 5.0 | 5.0 | 6.0 | 5.0 | 6.0 | 5.0 | 7.0 | 6.0 | 6.0 |
| Altman Z'' | 5.6 | 5.5 | 5.6 | 4.1 | 3.7 | 4.1 | 4.1 | 4.3 | 4.3 | 4.1 |
| Accruals ratio | −4.6% | −9.0% | −5.2% | −3.9% | −8.2% | −4.9% | −6.8% | −4.9% | −5.5% | −1.8% |
Source: SEC EDGAR XBRL filings (CIK 0000051143). Data updated October 22, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only — not investment advice. Check the original filings before relying on any figure.