IBM
IBM NYSE· IT Consulting & Other Services
Last close · Oct 26, 2026
$253.44
KIRA · Stoqly’s AI analyst, in plain words
- IBM had $67.5B of revenue in fiscal 2025, up 7.6% on the year before. Over five years, revenue changed +4.1% a year on average.
- IBM made $10.6B of net profit in fiscal 2025. From fiscal 2016 to 2025, diluted EPS grew −1.1% a year.
- Free cash flow was $12.1B in fiscal 2025, 17.9% of revenue.
- IBM returned $6.3B to shareholders in fiscal 2025, 52% of free cash flow. The diluted share count rose 1.2%.
- IBM owes $53.3B more than it holds in cash, about 3.1 years of operating profit.
Market cap
$241.7B
P/E
21.6x
Revenue
$67.5B
Net income
$10.6B
Free cash flow
$12.1B
Operating margin
—
IBM in 30 seconds · fiscal 2025
Are sales growing?
+7.6%
Yes. Sales grew 7.6% last year.
Does it make a profit?
15.7%
Yes. It keeps 15.7% of every sale as profit.
Does profit turn into cash?
17.9%
Yes. 17.9% of sales ends up as free cash.
Is debt under control?
3.1x
Heavy. Repaying its debt would take 3.1 years of operating profit.
How healthy are the accounts?
6 / 9
Mixed. It passes 6 of 9 health tests.
How is the share priced?
21.6x
One share costs 21.6 times its yearly profit per share. Typical for its sector: 33.5x.
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.
Biggest risks, in its own words
- Clients cutting their technology budgets if the economy weakens or their buying habits shift.
- Failing to keep up with fast-changing technology such as AI and hybrid cloud, or bets on new areas not paying off.
- Acquisitions that are hard to combine with its business, fall short of their goals or add debt.
- Its reliance on skilled workers who are in short supply, and on outside partners and sales channels.
- Fiscal year ends
- December 31, 2025
- Latest annual report
- 10-K · Feb 24, 2026
- Legal name
- INTERNATIONAL BUSINESS MACHINES CORPORATION
- CIK
- 0000051143
IBM · IBM
Results and finances
The last 5 fiscal years. Amounts in USD.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales and profit | |||||
| Revenue | $57.4B | $60.5B | $61.9B | $62.8B | $67.5B |
| Revenue growth | 3.9% | 5.5% | 2.2% | 1.4% | 7.6% |
| Gross margin | 54.9% | 54.0% | 55.5% | 56.7% | 58.2% |
| Net income | $5.7B | $1.6B | $7.5B | $6.0B | $10.6B |
| Net margin | 10.0% | 2.7% | 12.1% | 9.6% | 15.7% |
| Diluted EPS | $6.35 | $1.80 | $8.14 | $6.43 | $11.17 |
| Cash | |||||
| Cash from operations | $12.8B | $10.4B | $13.9B | $13.4B | $13.2B |
| Capital expenditure | $2.1B | $1.3B | $1.2B | $1.0B | $1.1B |
| Free cash flow | $10.7B | $9.1B | $12.7B | $12.4B | $12.1B |
| FCF margin | 18.7% | 15.0% | 20.5% | 19.8% | 17.9% |
| Dividends paid | $5.9B | $5.9B | $6.0B | $6.1B | $6.3B |
| Share buybacks | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Share count change | 0.9% | 0.8% | 1.1% | 1.6% | 1.2% |
| Debt and strength | |||||
| 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 |
| Shareholders' equity | $18.9B | $21.9B | $22.5B | $27.3B | $32.6B |
| Net debt / EBITDA | 4.1x | 6.6x | 3.4x | 3.7x | 3.1x |
| Current ratio | 0.9x | 0.9x | 1.0x | 1.0x | 1.0x |
| Interest coverage | 5.2x | 2.0x | 6.4x | 4.4x | 6.3x |
| Returns and quality | |||||
| Return on capital | 8.0% | 3.4% | 12.6% | 10.4% | 15.4% |
| Return on equity | 29.1% | 8.0% | 33.7% | 24.2% | 35.3% |
| Piotroski F-score | 6 | 5 | 7 | 6 | 6 |
| Altman Z'' | 4.1 | 4.1 | 4.3 | 4.3 | 4.1 |
Insiders bought, 12 months
$0.4M
3 insiders
Insiders sold, 12 months
$5.8M
1 insider
Of sales under plans
0%
$0.0M
How to read these numbers
- Revenue:
- Total sales reported in the income statement.
- Operating margin:
- Operating income as a share of revenue.
- Net income:
- Profit after all expenses, interest and tax.
- Free cash flow:
- Cash from operations minus capital spending.
- Net debt / EBITDA:
- Years of EBITDA needed to pay off net debt. Below zero means more cash than debt.
- Return on capital:
- After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
IBM · IBM
Charts and comparison
Ten years at a glance, and how it stacks up against similar companies.
Revenue
Net income
Margins, % of revenue
Cash vs debt (incl. leases)
Free cash flow
Dividends and buybacks
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 | $241.7B | 7.6% | — | 17.9% | 15.4% | 21.6x | 6 |
| Accenture ACN | $152.7B | 6.5% | 15.4% | 15.7% | 30.6% | — | 6 |
| Cognizant CTSH | $33.1B | 7.0% | 16.1% | 12.3% | 16.2% | 15.1x | 6 |
| Kyndryl KD | $3.2B | 0.2% | — | 2.3% | 7.8% | 39.7x | 6 |
| DXC Technology DXC | $2.7B | −1.8% | 7.7% | 8.2% | 9.2% | 21.4x | 7 |
Price compared with profit (P/E)
How many times its yearly profit per share one share costs. Higher means investors pay more for each unit of profit.
KIRA
At $253.44 a share, the company is worth $241.7B: 21.6 times its earnings of the last four quarters.
IBM grew sales faster than 4 of its 4 similar companies. Its P/E is higher than 2 of 3.
Source: SEC EDGAR XBRL filings (CIK 0000051143). Data updated October 22, 2026. For information only — not investment advice. Check the original filings before relying on any figure.