What is International Business Machines Corp's earnings per share (EPS)?

International Business Machines Corp (IBM) reported diluted earnings per share of $11.17 for fiscal year 2025. This represents a 73.7% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

International Business Machines Corp Financials

IBM

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows International Business Machines Corp (IBM) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 56/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Growth

International Business Machines Corp's revenue grew 7.6% year-over-year to $67.5B, a solid pace of expansion. This earns a growth score of 46/100.

Leverage

International Business Machines Corp carries a low D/E ratio of 1.68, meaning only $1.68 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 68/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

International Business Machines Corp's current ratio of 0.96 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 14/100, which could limit financial flexibility.

Cash Flow

International Business Machines Corp converts 17.9% of revenue into free cash flow ($12.1B). This strong cash generation earns a score of 70/100.

Returns

International Business Machines Corp earns a strong 32.5% return on equity (ROE), meaning it generates $32 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 83/100. This is up from 22.1% the prior year.

Piotroski F-Score Neutral

6/9

International Business Machines Corp passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed

1.25x

For every $1 of reported earnings, International Business Machines Corp generates $1.25 in operating cash flow ($13.2B OCF vs $10.6B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

Export CSV

Earnings & Revenue

Revenue

$67.5B

YoY+7.6%

5Y CAGR+4.1%

10Y CAGR-1.9%

International Business Machines Corp generated $67.5B in revenue in fiscal year 2025. This represents an increase of 7.6% from the prior year.

EBITDA

N/A

Net Income

$10.6B

YoY+75.9%

5Y CAGR+13.6%

10Y CAGR-2.2%

International Business Machines Corp reported $10.6B in net income in fiscal year 2025. This represents an increase of 75.9% from the prior year.

EPS (Diluted)

$11.17

YoY+73.7%

5Y CAGR+12.4%

10Y CAGR-1.8%

International Business Machines Corp earned $11.17 per diluted share (EPS) in fiscal year 2025. This represents an increase of 73.7% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$12.1B

YoY-2.4%

5Y CAGR-4.9%

10Y CAGR-1.2%

International Business Machines Corp generated $12.1B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 2.4% from the prior year.

Cash & Debt

$13.6B

YoY-2.6%

5Y CAGR+0.6%

10Y CAGR+5.9%

International Business Machines Corp held $13.6B in cash against $54.8B in long-term debt as of fiscal year 2025.

Dividends Per Share

$6.71

YoY+0.6%

5Y CAGR+0.6%

International Business Machines Corp paid $6.71 per share in dividends in fiscal year 2025. This represents an increase of 0.6% from the prior year.

Shares Outstanding

938M

YoY+1.2%

5Y CAGR+1.0%

10Y CAGR-0.5%

International Business Machines Corp had 938M shares outstanding in fiscal year 2025. This represents an increase of 1.2% from the prior year.

Margins & Returns

Gross Margin

58.2%

YoY+1.5pp

5Y CAGR+2.2pp

10Y CAGR+8.4pp

International Business Machines Corp's gross margin was 58.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.5 percentage points from the prior year.

Operating Margin

N/A

Net Margin

15.7%

YoY+6.1pp

5Y CAGR+5.6pp

10Y CAGR-0.4pp

International Business Machines Corp's net profit margin was 15.7% in fiscal year 2025, showing the share of revenue converted to profit. This is up 6.1 percentage points from the prior year.

Return on Equity

32.5%

YoY+10.4pp

5Y CAGR+5.3pp

10Y CAGR-60.0pp

International Business Machines Corp's ROE was 32.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 10.4 percentage points from the prior year.

Capital Allocation

R&D Spending

$8.3B

YoY+11.2%

5Y CAGR+5.8%

10Y CAGR+4.7%

International Business Machines Corp invested $8.3B in research and development in fiscal year 2025. This represents an increase of 11.2% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$1.1B

YoY+4.1%

5Y CAGR-16.1%

10Y CAGR-11.2%

International Business Machines Corp invested $1.1B in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 4.1% from the prior year.

IBM Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$67.5B+7.6%	$62.8B+1.4%	$61.9B+2.2%	$60.5B+5.5%	$57.4B+3.9%	$55.2B
Cost of Revenue	$28.2B+3.8%	$27.2B-1.3%	$27.6B-1.0%	$27.8B+7.6%	$25.9B+6.4%	$24.3B
Gross Profit	$39.3B+10.5%	$35.6B+3.6%	$34.3B+4.9%	$32.7B+3.8%	$31.5B+2.0%	$30.9B
R&D Expenses	$8.3B+11.2%	$7.5B+10.4%	$6.8B+3.2%	$6.6B+1.2%	$6.5B+3.6%	$6.3B
SG&A Expenses	$20.1B+2.2%	$19.7B+3.6%	$19.0B+2.1%	$18.6B-0.7%	$18.7B-8.8%	$20.6B
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	$1.9B+13.0%	$1.7B+6.5%	$1.6B+32.2%	$1.2B+5.3%	$1.2B-10.3%	$1.3B
Income Tax	-$242.0M-11.0%	-$218.0M-118.5%	$1.2B+287.9%	-$626.0M-604.8%	$124.0M+109.1%	-$1.4B
Net Income	$10.6B+75.9%	$6.0B-19.7%	$7.5B+357.7%	$1.6B-71.5%	$5.7B+2.7%	$5.6B
EPS (Diluted)	$11.17+73.7%	$6.43-21.0%	$8.14+352.2%	$1.80-71.7%	$6.35+1.9%	$6.23

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Revenue	$19.7B+20.5%	$16.3B-3.8%	$17.0B+16.8%	$14.5B-17.2%	$17.6B+17.3%	$15.0B-5.1%	$15.8B+9.0%	$14.5B
Cost of Revenue	$7.8B+11.3%	$7.0B-0.4%	$7.0B+7.5%	$6.5B-8.5%	$7.1B+8.6%	$6.5B-4.0%	$6.8B+1.5%	$6.7B
Gross Profit	$11.9B+27.4%	$9.4B-6.2%	$10.0B+24.2%	$8.0B-23.1%	$10.4B+24.0%	$8.4B-5.9%	$8.9B+15.6%	$7.7B
R&D Expenses	$2.2B+5.0%	$2.1B-0.7%	$2.1B+7.5%	$1.9B-0.9%	$2.0B+4.9%	$1.9B+2.0%	$1.8B+2.4%	$1.8B
SG&A Expenses	$5.5B+15.0%	$4.7B-5.6%	$5.0B+2.9%	$4.9B+0.4%	$4.9B-0.9%	$4.9B-0.5%	$4.9B-0.7%	$5.0B
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	$478.0M-2.8%	$492.0M-3.5%	$510.0M+12.1%	$455.0M+7.3%	$424.0M-1.2%	$429.0M+0.5%	$427.0M-1.2%	$432.0M
Income Tax	-$1.4B-309.2%	$686.0M+69.8%	$404.0M+292.2%	$103.0M-72.9%	$380.0M+178.4%	-$485.0M-224.7%	$389.0M+177.5%	-$502.0M
Net Income	$5.6B+221.1%	$1.7B-20.5%	$2.2B+108.0%	$1.1B-63.8%	$2.9B+983.0%	-$330.0M-118.0%	$1.8B+14.3%	$1.6B
EPS (Diluted)	N/A	$1.84-20.3%	$2.31+106.2%	$1.12	N/A	$-0.36-118.4%	$1.96+14.0%	$1.72

IBM Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$151.9B+10.7%	$137.2B+1.4%	$135.2B+6.3%	$127.2B-3.6%	$132.0B-15.4%	$156.0B
Current Assets	$36.9B+7.1%	$34.5B+4.8%	$32.9B+13.0%	$29.1B-1.4%	$29.5B-24.6%	$39.2B
Cash & Equivalents	$13.6B-2.6%	$13.9B+6.7%	$13.1B+65.7%	$7.9B+18.6%	$6.7B-49.6%	$13.2B
Inventory	$1.2B-5.4%	$1.3B+11.0%	$1.2B-25.2%	$1.6B-5.9%	$1.6B-9.0%	$1.8B
Accounts Receivable	$8.1B+19.2%	$6.8B-5.7%	$7.2B+10.3%	$6.5B-3.2%	$6.8B+16.6%	$5.8B
Goodwill	$67.7B+11.5%	$60.7B+0.9%	$60.2B+7.6%	$55.9B+0.5%	$55.6B+3.5%	$53.8B
Total Liabilities	$119.1B+8.5%	$109.8B-2.5%	$112.6B+7.0%	$105.2B-6.9%	$113.0B-16.4%	$135.2B
Current Liabilities	$38.7B+16.6%	$33.1B-2.9%	$34.1B+8.3%	$31.5B-6.3%	$33.6B-15.7%	$39.9B
Long-Term Debt	$54.8B+9.9%	$49.9B-0.5%	$50.1B+8.5%	$46.2B+2.8%	$44.9B-17.2%	$54.2B
Total Equity	$32.6B+19.6%	$27.3B+21.2%	$22.5B+2.7%	$21.9B+16.1%	$18.9B-8.2%	$20.6B
Retained Earnings	$155.6B+3.0%	$151.2B-0.1%	$151.3B+1.0%	$149.8B-2.8%	$154.2B-5.2%	$162.7B

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Total Assets	$151.9B+3.8%	$146.3B-1.5%	$148.6B+2.0%	$145.7B+6.2%	$137.2B+2.1%	$134.3B+0.4%	$133.8B-2.4%	$137.2B
Current Assets	$36.9B+12.8%	$32.7B-4.4%	$34.3B-3.1%	$35.3B+2.5%	$34.5B+12.9%	$30.5B-8.3%	$33.3B-9.2%	$36.7B
Cash & Equivalents	$13.6B+17.4%	$11.6B-3.1%	$11.9B+8.2%	$11.0B-20.9%	$13.9B+5.7%	$13.2B+8.1%	$12.2B-16.4%	$14.6B
Inventory	$1.2B-12.7%	$1.4B+11.7%	$1.3B-12.6%	$1.4B+11.0%	$1.3B-5.7%	$1.4B+10.8%	$1.2B+1.8%	$1.2B
Accounts Receivable	$8.1B+46.6%	$5.5B-7.4%	$6.0B+2.0%	$5.9B-13.9%	$6.8B+26.2%	$5.4B-6.6%	$5.8B-4.5%	$6.0B
Goodwill	$67.7B+0.5%	$67.4B-0.2%	$67.5B+2.2%	$66.1B+8.8%	$60.7B-0.6%	$61.1B+2.8%	$59.4B-0.2%	$59.5B
Total Liabilities	$119.1B+0.7%	$118.3B-2.2%	$121.0B+1.9%	$118.7B+8.1%	$109.8B0.0%	$109.8B+0.1%	$109.7B-3.6%	$113.8B
Current Liabilities	$38.7B+10.0%	$35.1B-6.8%	$37.7B+7.5%	$35.1B+5.9%	$33.1B+14.9%	$28.9B-2.7%	$29.6B-8.5%	$32.4B
Long-Term Debt	$54.8B-0.6%	$55.2B-0.1%	$55.2B-2.0%	$56.4B+13.0%	$49.9B-5.8%	$53.0B+0.1%	$52.9B-2.0%	$54.0B
Total Equity	$32.6B+17.0%	$27.9B+1.4%	$27.5B+2.3%	$26.9B-1.6%	$27.3B+11.7%	$24.4B+1.8%	$24.0B+3.3%	$23.3B
Retained Earnings	$155.6B+2.7%	$151.6B+0.1%	$151.4B+0.4%	$150.7B-0.3%	$151.2B+0.9%	$149.8B-1.2%	$151.7B+0.2%	$151.4B

IBM Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$13.2B-1.9%	$13.4B-3.5%	$13.9B+33.5%	$10.4B-18.5%	$12.8B-29.7%	$18.2B
Capital Expenditures	$1.1B+4.1%	$1.0B-15.8%	$1.2B-7.5%	$1.3B-34.7%	$2.1B-21.2%	$2.6B
Free Cash Flow	$12.1B-2.4%	$12.4B-2.3%	$12.7B+39.6%	$9.1B-15.3%	$10.7B-31.1%	$15.6B
Investing Cash Flow	-$10.3B-108.7%	-$4.9B+30.2%	-$7.1B-68.3%	-$4.2B+29.7%	-$6.0B-97.3%	-$3.0B
Financing Cash Flow	-$3.8B+45.9%	-$7.1B-300.2%	-$1.8B+64.3%	-$5.0B+62.9%	-$13.4B-37.4%	-$9.7B
Dividends Paid	$6.3B+1.8%	$6.1B+1.8%	$6.0B+1.5%	$5.9B+1.3%	$5.9B+1.2%	$5.8B
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Operating Cash Flow	$4.0B+31.1%	$3.1B+81.2%	$1.7B-61.1%	$4.4B+0.9%	$4.3B+50.3%	$2.9B+39.4%	$2.1B-50.4%	$4.2B
Capital Expenditures	$382.0M+49.8%	$255.0M+21.4%	$210.0M-13.9%	$244.0M-19.5%	$303.0M+5.9%	$286.0M+30.0%	$220.0M-7.9%	$239.0M
Free Cash Flow	$3.7B+29.4%	$2.8B+89.6%	$1.5B-63.9%	$4.1B+2.5%	$4.0B+55.2%	$2.6B+40.6%	$1.8B-53.0%	$3.9B
Investing Cash Flow	$1.4B+423.5%	-$438.0M-125.8%	$1.7B+113.1%	-$13.0B-841.2%	-$1.4B+13.1%	-$1.6B-170.9%	$2.2B+153.2%	-$4.2B
Financing Cash Flow	-$3.4B-13.1%	-$3.0B-5.5%	-$2.9B-152.4%	$5.4B+424.8%	-$1.7B+39.4%	-$2.8B+38.8%	-$4.5B-340.5%	$1.9B
Dividends Paid	$1.6B+0.3%	$1.6B+0.4%	$1.6B+0.9%	$1.5B+0.2%	$1.5B+0.2%	$1.5B+0.5%	$1.5B+0.9%	$1.5B
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

IBM Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	58.2%+1.5pp	56.6%+1.2pp	55.5%+1.4pp	54.0%-0.9pp	54.9%-1.0pp	55.9%
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	15.7%+6.1pp	9.6%-2.5pp	12.1%+9.4pp	2.7%-7.3pp	10.0%-0.1pp	10.1%
Return on Equity	32.5%+10.4pp	22.1%-11.2pp	33.3%+25.8pp	7.5%-22.9pp	30.4%+3.2pp	27.1%
Return on Assets	7.0%+2.6pp	4.4%-1.2pp	5.5%+4.3pp	1.3%-3.1pp	4.3%+0.8pp	3.6%
Current Ratio	0.96-0.1	1.04+0.1	0.96+0.0	0.92+0.0	0.88-0.1	0.98
Debt-to-Equity	1.68-0.1	1.83-0.4	2.22+0.1	2.10-0.3	2.38-0.3	2.63
FCF Margin	17.9%-1.8pp	19.8%-0.8pp	20.5%+5.5pp	15.0%-3.7pp	18.7%-9.5pp	28.2%

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Gross Margin	60.6%+3.3pp	57.3%-1.5pp	58.8%+3.5pp	55.2%-4.2pp	59.5%+3.2pp	56.3%-0.5pp	56.8%+3.2pp	53.5%
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	28.4%+17.8pp	10.7%-2.2pp	12.9%+5.7pp	7.3%-9.3pp	16.6%+18.8pp	-2.2%-13.8pp	11.6%+0.5pp	11.1%
Return on Equity	17.2%+10.9pp	6.3%-1.7pp	8.0%+4.1pp	3.9%-6.8pp	10.7%+12.0pp	-1.4%-9.0pp	7.6%+0.7pp	6.9%
Return on Assets	3.7%+2.5pp	1.2%-0.3pp	1.5%+0.8pp	0.7%-1.4pp	2.1%+2.4pp	-0.3%-1.6pp	1.4%+0.2pp	1.2%
Current Ratio	0.96+0.0	0.93+0.0	0.91-0.1	1.01-0.0	1.04-0.0	1.06-0.1	1.120.0	1.13
Debt-to-Equity	1.68-0.3	1.98-0.0	2.01-0.1	2.10+0.3	1.83-0.3	2.17-0.0	2.20-0.1	2.32
FCF Margin	18.6%+1.3pp	17.3%+8.5pp	8.8%-19.6pp	28.4%+5.4pp	22.9%+5.6pp	17.3%+5.6pp	11.7%-15.5pp	27.2%

Note: The current ratio is below 1.0 (0.96), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Frequently Asked Questions

What is International Business Machines Corp's annual revenue?

International Business Machines Corp (IBM) reported $67.5B in total revenue for fiscal year 2025. This represents a 7.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is International Business Machines Corp's revenue growing?

International Business Machines Corp (IBM) revenue grew by 7.6% year-over-year, from $62.8B to $67.5B in fiscal year 2025.

Is International Business Machines Corp profitable?

Yes, International Business Machines Corp (IBM) reported a net income of $10.6B in fiscal year 2025, with a net profit margin of 15.7%.

How much debt does International Business Machines Corp have?

As of fiscal year 2025, International Business Machines Corp (IBM) had $13.6B in cash and equivalents against $54.8B in long-term debt.

What is International Business Machines Corp's gross margin?

International Business Machines Corp (IBM) had a gross margin of 58.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is International Business Machines Corp's net profit margin?

International Business Machines Corp (IBM) had a net profit margin of 15.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Does International Business Machines Corp pay dividends?

Yes, International Business Machines Corp (IBM) paid $6.71 per share in dividends during fiscal year 2025.

What is International Business Machines Corp's return on equity (ROE)?

International Business Machines Corp (IBM) has a return on equity of 32.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is International Business Machines Corp's free cash flow?

International Business Machines Corp (IBM) generated $12.1B in free cash flow during fiscal year 2025. This represents a -2.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is International Business Machines Corp's operating cash flow?

International Business Machines Corp (IBM) generated $13.2B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are International Business Machines Corp's total assets?

International Business Machines Corp (IBM) had $151.9B in total assets as of fiscal year 2025, including both current and long-term assets.

What are International Business Machines Corp's capital expenditures?

International Business Machines Corp (IBM) invested $1.1B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does International Business Machines Corp spend on research and development?

International Business Machines Corp (IBM) invested $8.3B in research and development during fiscal year 2025.

How many shares does International Business Machines Corp have outstanding?

International Business Machines Corp (IBM) had 938M shares outstanding as of fiscal year 2025.

What is International Business Machines Corp's current ratio?

International Business Machines Corp (IBM) had a current ratio of 0.96 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

What is International Business Machines Corp's debt-to-equity ratio?

International Business Machines Corp (IBM) had a debt-to-equity ratio of 1.68 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is International Business Machines Corp's return on assets (ROA)?

International Business Machines Corp (IBM) had a return on assets of 7.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is International Business Machines Corp's Piotroski F-Score?

International Business Machines Corp (IBM) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are International Business Machines Corp's earnings high quality?

International Business Machines Corp (IBM) has an earnings quality ratio of 1.25x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

How financially healthy is International Business Machines Corp?

International Business Machines Corp (IBM) scores 56 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.