IBM vs Kyndryl
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The short version
- IBM is the larger business, with $67.5B of revenue in fiscal 2025 against $15.1B for Kyndryl, about 4.5 times as much.
- IBM grew revenue faster (7.6%, against 0.2%).
- IBM turned more of its sales into free cash flow (17.9% FCF margin, against 2.3%).
- IBM earned a higher return on the capital invested in it (15.4%, against 7.8%).
- Investors pay more for each dollar of Kyndrylβs earnings: a P/E of 39.9x against 21.6x for IBM.
| Latest fiscal year | IBM Β· FY25 | KD Β· FY26 |
|---|---|---|
| Size | ||
| Market cap | $241.8B | $3.3B |
| Revenue | $67.5B | $15.1B |
| Free cash flow | $12.1B | $340M |
| Net income | $10.6B | $198M |
| Growth | ||
| Revenue growth | 7.6% | 0.2% |
| 5-year growth | 4.1% | β4.9% |
| Share count change | 1.2% | β2.2% |
| Profitability | ||
| Gross margin | 58.2% | 21.8% |
| Operating margin | β | β |
| Net margin | 15.7% | 1.3% |
| FCF margin | 17.9% | 2.3% |
| Return on capital | 15.4% | 7.8% |
| Return on equity | 35.3% | 16.5% |
| Balance sheet | ||
| Net debt | $53.3B | $2.3B |
| Net debt / EBITDA | 3.1x | 1.8x |
| Dividends and buybacks | $6.3B | $304M |
| Valuation & quality | ||
| P/E | 21.6x | 39.9x |
| Piotroski F-score | 6 | 6 |
Revenue
FY17
IBM $79.1B
KD β
FY18
IBM $79.6B
KD β
FY19
IBM $57.7B
KD $20.3B
FY20
IBM $55.2B
KD $19.4B
FY21
IBM $57.4B
KD $18.7B
FY22
IBM $60.5B
KD β
FY23
IBM $61.9B
KD $17.0B
FY24
IBM $62.8B
KD $16.1B
FY25
IBM $67.5B
KD $15.1B
FY26
IBM β
KD $15.1B
IBM
KD
Operating margin
FY17
IBM β
KD β
FY18
IBM β
KD β
FY19
IBM β
KD β
FY20
IBM β
KD β
FY21
IBM β
KD β
FY22
IBM β
KD β
FY23
IBM β
KD β
FY24
IBM β
KD β
FY25
IBM β
KD β
FY26
IBM β
KD β
IBM
KD
Free cash flow
FY17
IBM $13.5B
KD β
FY18
IBM $11.9B
KD β
FY19
IBM $12.5B
KD β$56.0M
FY20
IBM $15.6B
KD β$408M
FY21
IBM $10.7B
KD β$871M
FY22
IBM $9.1B
KD β
FY23
IBM $12.7B
KD β$84.0M
FY24
IBM $12.4B
KD β$197M
FY25
IBM $12.1B
KD $337M
FY26
IBM β
KD $340M
IBM
KD
Return on capital
FY17
IBM 12.0%
KD β
FY18
IBM 17.2%
KD β
FY19
IBM 12.1%
KD β
FY20
IBM 4.9%
KD β
FY21
IBM 8.0%
KD β31.8%
FY22
IBM 3.4%
KD β
FY23
IBM 12.6%
KD β
FY24
IBM 10.4%
KD β1.2%
FY25
IBM 15.4%
KD 10.6%
FY26
IBM β
KD 7.8%
IBM
KD
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.