International Business Machines Corporation (IBM) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 9, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Jul 23, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the IBM SEC filings page.
International Business Machines Corporation (IBM) reported $69.1B in revenue over the twelve months to Jun 30, 2026, up 7.9% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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).
IBM's higher-margin business produced sharply better reported profit in FY2025, but cash generation barely improved and short-term liquidity tightened.
Net income rose sharply to$10.6B in FY2025 while operating cash flow edged down, revealing earnings growth outpaced cash generation. Free cash flow also fell to$12.1B from$12.4B , so the profit improvement translated into less cash after capital spending; cash conversion weakened rather than strengthened.
Gross margin widened from
Debt-to-equity fell from 2.2x in FY2023 to 1.7x in FY2025 as equity expanded, showing improved leverage relative to the capital base. Yet the current ratio slipped below 1.0x, meaning current liabilities exceeded current assets: long-term leverage improved while short-term coverage became less comfortable.
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of International Business Machines Corporation's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Not available for International Business Machines Corporation, and counted as zero in the overall score.
International Business Machines Corporation's revenue grew 7.6% year-over-year to $67.5B, a solid pace of expansion. This earns a growth score of 48/100.
International Business Machines Corporation has a moderate D/E ratio of 1.68. This balance of debt and equity financing earns a leverage score of 35/100.
International Business Machines Corporation's current ratio of 0.96 is below the typical benchmark, resulting in a score of 17/100. This tight liquidity could limit financial flexibility if cash inflows slow.
International Business Machines Corporation converts 17.9% of revenue into free cash flow ($12.1B). This strong cash generation earns a score of 85/100.
Not available for International Business Machines Corporation, and counted as zero in the overall score.
International Business Machines Corporation 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.
For every $1 of reported earnings, International Business Machines Corporation 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
Earnings & Revenue
International Business Machines Corporation generated $17.2B in revenue in Q2 2026. This represents an increase of 1.1% from the same quarter a year earlier. Against the prior quarter it is up 7.8%.
International Business Machines Corporation reported $2.2B in net income in Q2 2026. This represents a decrease of 1.3% from the same quarter a year earlier. Against the prior quarter it is up 78.0%.
International Business Machines Corporation earned $2.27 per diluted share (EPS) in Q2 2026. This represents a decrease of 1.7% from the same quarter a year earlier. Against the prior quarter it is up 77.3%.
Not reported for Q2 2026.
Cash & Balance Sheet
International Business Machines Corporation generated $2.4B in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 58.8% from the same quarter a year earlier. Against the prior quarter it is down 52.0%.
International Business Machines Corporation held $7.2B in cash against $56.2B in long-term debt as of Q2 2026.
International Business Machines Corporation paid $1.69 per share in dividends in Q2 2026. This represents an increase of 0.6% from the same quarter a year earlier. Against the prior quarter it is up 0.6%.
Margins & Returns
International Business Machines Corporation's gross margin was 57.7% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is down 1.0 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.5 percentage points.
International Business Machines Corporation's net profit margin was 12.6% in Q2 2026, showing the share of revenue converted to profit. This is down 0.3 percentage points from the same quarter a year earlier. Against the prior quarter it is up 5.0 percentage points.
International Business Machines Corporation's ROE was 6.3% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 1.7 percentage points from the same quarter a year earlier. Against the prior quarter it is up 2.6 percentage points.
Not reported for Q2 2026.
Capital Allocation
International Business Machines Corporation invested $2.3B in research and development in Q2 2026. This represents an increase of 10.2% from the same quarter a year earlier. Against the prior quarter it is up 6.4%.
International Business Machines Corporation invested $229.0M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 9.0% from the same quarter a year earlier. Against the prior quarter it is down 1.3%.
Not reported for Q2 2026.
IBM Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $17.2B+1.1% | $15.9B+9.5% | $19.7B+12.2% | $16.3B+9.1% | $17.0B+7.7% | $14.5B+0.5% | $17.6B+1.0% | $15.0B+1.5% |
| Cost of Revenue | $7.3B+3.6% | $7.0B+7.0% | $7.8B+9.1% | $7.0B+6.4% | $7.0B+2.7% | $6.5B-3.1% | $7.1B0.0% | $6.5B-2.7% |
| Gross Profit | $9.9B-0.7% | $8.9B+11.4% | $11.9B+14.3% | $9.4B+11.2% | $10.0B+11.5% | $8.0B+3.7% | $10.4B+1.7% | $8.4B+4.9% |
| R&D Expenses | $2.3B+10.2% | $2.2B+11.4% | $2.2B+11.2% | $2.1B+11.0% | $2.1B+14.0% | $1.9B+8.6% | $2.0B+12.5% | $1.9B+11.3% |
| SG&A Expenses | $5.0B-0.9% | $5.1B+4.2% | $5.5B+12.3% | $4.7B-3.3% | $5.0B+1.8% | $4.9B-1.8% | $4.9B+1.5% | $4.9B+10.2% |
| Interest Expense | $486.0M-4.7% | $473.0M+4.0% | $478.0M+12.7% | $492.0M+14.7% | $510.0M+19.4% | $455.0M+5.3% | $424.0M+4.7% | $429.0M+4.1% |
| Income Tax | $313.0M-22.5% | $172.0M+67.0% | -$1.4B-477.6% | $686.0M+241.4% | $404.0M+3.9% | $103.0M+120.5% | $380.0M-19.8% | -$485.0M-405.0% |
| Net Income | $2.2B-1.3% | $1.2B+15.3% | $5.6B+92.2% | $1.7B+628.5% | $2.2B+19.6% | $1.1B-34.3% | $2.9B-11.4% | -$330.0M-119.4% |
| EPS (Basic) | $2.30-2.5% | $1.30+14.0% | $6.00+90.5% | $1.87+619.4% | $2.36+18.6% | $1.14-34.9% | $3.15-12.5% | -$0.36-119.3% |
| EPS (Diluted) | $2.27-1.7% | $1.28+14.3% | $5.90+89.7% | $1.84+611.1% | $2.31+17.9% | $1.12-34.9% | $3.11-12.6% | -$0.36-119.6% |
| Diluted Shares (Avg) | 953M+0.6% | 952M+0.7% | N/A | 949M+2.7% | 948M+1.5% | 945M+1.3% | N/A | 924M0.0% |
Not reported in any period shown, so not listed: Operating Income, EBITDA.
IBM Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $152.1B+2.4% | $156.2B+7.3% | $151.9B+10.7% | $146.3B+8.9% | $148.6B+11.0% | $145.7B+6.2% | $137.2B+1.4% | $134.3B+3.9% |
| Current Assets | $28.4B-17.1% | $31.9B-9.7% | $36.9B+7.1% | $32.7B+7.2% | $34.3B+2.9% | $35.3B-3.6% | $34.5B+4.8% | $30.5B+10.2% |
| Cash & Equivalents | $7.2B-39.9% | $10.8B-2.0% | $13.6B-2.6% | $11.6B-12.3% | $11.9B-2.2% | $11.0B-24.4% | $13.9B+6.7% | $13.2B+81.9% |
| Short-Term Investments | $960.0M-72.6% | $964.0M-85.0% | $830.0M+28.9% | $3.3B+550.7% | $3.5B+136.6% | $6.4B+42.5% | $644.0M+72.7% | $505.0M-86.4% |
| Inventory | $1.7B+39.6% | $1.5B+3.1% | $1.2B-5.4% | $1.4B+2.2% | $1.3B+1.4% | $1.4B+18.1% | $1.3B+11.0% | $1.4B-2.3% |
| Accounts Receivable | $6.0B+1.2% | $6.5B+10.9% | $8.1B+19.2% | $5.5B+2.6% | $6.0B+3.6% | $5.9B-3.0% | $6.8B-5.7% | $5.4B+1.1% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $74.6B+10.5% | $74.7B+13.1% | $67.7B+11.5% | $67.4B+10.3% | $67.5B+13.6% | $66.1B+11.0% | $60.7B+0.9% | $61.1B+2.5% |
| Total Liabilities | $117.6B-2.8% | $123.2B+3.8% | $119.1B+8.5% | $118.3B+7.8% | $121.0B+10.3% | $118.7B+4.3% | $109.8B-2.5% | $109.8B+3.4% |
| Current Liabilities | $35.9B-4.8% | $40.1B+14.2% | $38.7B+16.6% | $35.1B+21.8% | $37.7B+27.2% | $35.1B+8.4% | $33.1B-2.9% | $28.9B-5.7% |
| Non-Current Liabilities | $81.6B-2.0% | $83.1B-0.6% | $80.5B+5.0% | $83.2B+2.7% | $83.3B+4.0% | $83.6B+2.7% | $76.6B-2.4% | $81.0B+7.1% |
| Long-Term Debt | $56.2B+1.8% | $57.7B+2.4% | $54.8B+9.9% | $55.2B+4.1% | $55.2B+4.3% | $56.4B+4.3% | $49.9B-0.5% | $53.0B+8.5% |
| Total Equity | $34.5B+25.2% | $33.0B+22.7% | $32.6B+19.6% | $27.9B+14.1% | $27.5B+14.5% | $26.9B+15.6% | $27.3B+21.2% | $24.4B+5.9% |
| Retained Earnings | $155.9B+3.0% | $155.3B+3.1% | $155.6B+3.0% | $151.6B+1.2% | $151.4B-0.2% | $150.7B-0.4% | $151.2B-0.1% | $149.8B+0.2% |
IBM Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $2.6B+52.7% | $5.2B+18.3% | $4.0B-6.7% | $3.1B+7.0% | $1.7B-17.7% | $4.4B+4.8% | $4.3B-3.0% | $2.9B-5.7% |
| Depreciation & Amortization | $1.3B+6.6% | $1.3B+8.2% | $1.3B+16.4% | $1.3B+1.2% | $1.3B+9.5% | $1.2B+4.1% | $1.1B-3.4% | $1.3B+16.0% |
| Stock-Based Compensation | $498.0M+12.9% | $506.0M+26.2% | N/A | $444.0M+34.5% | $441.0M+39.6% | $401.0M+25.3% | N/A | $330.0M+15.4% |
| Capital Expenditures | $229.0M+9.0% | $232.0M-4.9% | $382.0M+26.1% | $255.0M-10.8% | $210.0M-4.5% | $244.0M+2.1% | $303.0M+1.0% | $286.0M+1.8% |
| Free Cash Flow | $2.4B+58.8% | $4.9B+19.7% | $3.7B-9.2% | $2.8B+8.9% | $1.5B-19.2% | $4.1B+5.0% | $4.0B-3.3% | $2.6B-6.5% |
| Investing Cash Flow | -$481.0M-128.3% | -$10.5B+19.2% | $1.4B+202.8% | -$438.0M+72.4% | $1.7B-24.2% | -$13.0B-208.3% | -$1.4B-148.6% | -$1.6B+18.7% |
| Financing Cash Flow | -$5.7B-100.7% | $2.7B-50.0% | -$3.4B-103.2% | -$3.0B-8.9% | -$2.9B+36.8% | $5.4B+190.0% | -$1.7B-3.8% | -$2.8B+11.7% |
| Dividends Paid | $1.6B+1.7% | $1.6B+1.7% | $1.6B+1.8% | $1.6B+1.7% | $1.6B+1.8% | $1.5B+1.8% | $1.5B+1.8% | $1.5B+1.8% |
Not reported in any period shown, so not listed: Share Buybacks.
IBM Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 57.7%-1.0pp | 56.2%+1.0pp | 60.6%+1.1pp | 57.3%+1.1pp | 58.8%+2.0pp | 55.2%+1.7pp | 59.5%+0.4pp | 56.3%+1.9pp |
| Net Margin | 12.6%-0.3pp | 7.6%+0.4pp | 28.4%+11.8pp | 10.7%+12.9pp | 12.9%+1.3pp | 7.3%-3.8pp | 16.6%-2.3pp | -2.2%-13.8pp |
| Return on Equity | 6.3%-1.7pp | 3.7%-0.2pp | 17.2%+6.5pp | 6.3%+7.6pp | 8.0%+0.3pp | 3.9%-3.0pp | 10.7%-3.9pp | -1.4%-8.7pp |
| Return on Assets | 1.4%-0.1pp | 0.8%+0.1pp | 3.7%+1.6pp | 1.2%+1.4pp | 1.5%+0.1pp | 0.7%-0.5pp | 2.1%-0.3pp | -0.3%-1.6pp |
| Current Ratio | 0.79-0.1x | 0.80-0.2x | 0.96-0.1x | 0.93-0.1x | 0.91-0.2x | 1.01-0.1x | 1.04+0.1x | 1.06+0.2x |
| Debt-to-Equity | 1.63-0.4x | 1.75-0.3x | 1.68-0.1x | 1.98-0.2x | 2.01-0.2x | 2.10-0.2x | 1.83-0.4x | 2.17+0.1x |
| Asset Turnover | 0.110.0x | 0.100.0x | 0.130.0x | 0.110.0x | 0.110.0x | 0.100.0x | 0.130.0x | 0.110.0x |
| FCF Margin | 13.8%+5.0pp | 31.0%+2.6pp | 18.6%-4.4pp | 17.3%0.0pp | 8.8%-2.9pp | 28.4%+1.2pp | 22.9%-1.0pp | 17.3%-1.5pp |
Not reported in any period shown, so not listed: Operating Margin.
Note: The current ratio is below 1.0 (0.96), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| International Business Machines Corporation IBM | FY2025 | $67.5B | $10.6B | 15.7% | $213.5B | 31/100 |
| Accenture plc ACN | FY2025 | $69.7B | $7.7B | 11.0% | $120.3B | 72/100 |
| Fiserv, Inc. FI | FY2025 | $21.2B | $3.5B | 16.4% | $34.3B | 56/100 |
| Infosys Limited INFY | FY2026 | $20.2B | $3.3B | 16.4% | $42.7B | 31/100 |
| Fidelity National Information Services, Inc. FIS | FY2025 | $10.7B | $382.0M | 3.6% | $17.4B | 51/100 |
| Cognizant Technology Solutions CTSH | FY2025 | $21.1B | $2.2B | 10.6% | $25.7B | 74/100 |
Where International Business Machines Corporation Ranks
Frequently Asked Questions
What is International Business Machines Corporation's annual revenue?
International Business Machines Corporation (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 Corporation's revenue growing?
International Business Machines Corporation (IBM) revenue grew by 7.6% year-over-year, from $62.8B to $67.5B in fiscal year 2025.
Is International Business Machines Corporation profitable?
Yes, International Business Machines Corporation (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 Corporation have?
As of fiscal year 2025, International Business Machines Corporation (IBM) had $13.6B in cash and equivalents against $54.8B in long-term debt.
What is International Business Machines Corporation's gross margin?
International Business Machines Corporation (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 Corporation's net profit margin?
International Business Machines Corporation (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 Corporation pay dividends?
Yes, International Business Machines Corporation (IBM) paid $6.71 per share in dividends during fiscal year 2025.
What is International Business Machines Corporation's return on equity (ROE)?
International Business Machines Corporation (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 Corporation's free cash flow?
International Business Machines Corporation (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 Corporation's operating cash flow?
International Business Machines Corporation (IBM) generated $13.2B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are International Business Machines Corporation's total assets?
International Business Machines Corporation (IBM) had $151.9B in total assets as of fiscal year 2025, including both current and long-term assets.
What are International Business Machines Corporation's capital expenditures?
International Business Machines Corporation (IBM) invested $1.1B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does International Business Machines Corporation spend on research and development?
International Business Machines Corporation (IBM) invested $8.3B in research and development during fiscal year 2025.
What is International Business Machines Corporation's current ratio?
International Business Machines Corporation (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 Corporation's debt-to-equity ratio?
International Business Machines Corporation (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 Corporation's return on assets (ROA)?
International Business Machines Corporation (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 Corporation's P/E ratio?
International Business Machines Corporation (IBM) trades at 19.9x earnings, its market capitalization divided by net income of $10.7B net income, trailing 12 months to June 30, 2026. The market capitalization is $213.5B as of Oct 9, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is International Business Machines Corporation's price-to-sales ratio?
International Business Machines Corporation (IBM) trades at 3.1x sales, its market capitalization divided by revenue of $69.1B revenue, trailing 12 months to June 30, 2026. The market capitalization is $213.5B as of Oct 9, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is International Business Machines Corporation's Piotroski F-Score?
International Business Machines Corporation (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 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are International Business Machines Corporation's earnings high quality?
International Business Machines Corporation (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 Corporation?
International Business Machines Corporation (IBM) scores 31 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.