IBMNYSEComputer & office EquipmentFiscal year ends December 31
INTERNATIONAL BUSINESS MACHINES CORP
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Jul 23, 2026
$236.39+4.25 (+1.83%)
Close on Oct 19, 2026
- Market cap
- $225.34B
- P/E (TTM)
- 21.0
- Dividend yield
- 2.84%
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
58.2%+2.3 pts over 5 years
Net margin
15.7%+5.6 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +7.6% | +3.7% | +4.1% | -1.9% | |
| Gross profit | +10.5% | +6.3% | +4.9% | -0.3% | |
| Net income | +75.9% | +86.3% | +13.6% | -2.2% | |
| EPS, diluted | +73.7% | +83.8% | +12.4% | -1.8% | |
| Free cash flow | -2.4% | +10.0% | -4.9% | -1.2% | |
| Dividend per share | +0.6% | +0.6% | +0.6% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 73.0% | 27.0% | 35.3% | |
| Return on assets | 10.4% | 3.6% | 7.3% | |
| Current ratio | 1.21 | 0.98 | 0.96 | |
| Debt to equity | 2.31 | 3.32 | 2.07 | |
| Inventory turnover | 26.7× | 14.2× | 22.5× | |
| Capex to revenue | 4.5% | 4.7% | 1.6% | |
| Diluted shares | 959M | 897M | 949M |
Where the cash went
Fiscal 2021 to 2025, five years combined
International Business Machines generated $63.80B from operations and spent $37.05B on capital expenditure, dividends and share buybacks. 18% of that went back into the business.
Generated
$63.80B
Used
$37.05B
Capital expenditure$6.79B18%Dividends$30.26B82%Share buybacks$00%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin15.7%
×Asset turnover0.47×
×Equity multiplier4.82×
=Return on equity, FY202535.3%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 15.7% | 0.47× | 4.82× | 35.3% |
| FY2024 | 9.6% | 0.46× | 5.47× | 24.2% |
| FY2023 | 12.1% | 0.47× | 5.90× | 33.7% |
| FY2022 | 2.7% | 0.47× | 6.35× | 8.0% |
| FY2021 | 10.0% | 0.40× | 7.29× | 29.1% |
| FY2020 | 10.1% | 0.36× | 7.44× | 27.0% |
| FY2019 | 16.3% | 0.42× | 7.32× | 50.1% |
| FY2018 | 11.0% | 0.64× | 7.23× | 50.8% |
| FY2017 | 7.3% | 0.65× | 6.78× | 32.1% |
| FY2016 | 14.9% | 0.70× | 7.01× | 73.0% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
7of 9 tests passed in fiscal 2025. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero$10.59B
- Cash generatingOperating cash flow above zero$13.19B
- Return on assets improvedROA up on the prior year4.5% → 7.7%
- Earnings backed by cashOperating cash flow above net income$13.19B vs $10.59B
- Less leverageLong-term debt to assets fell36.4% → 36.1%
- Better liquidityCurrent ratio rose1.04 → 0.96
- No dilutionShare count did not rise937M → 949M
- Gross margin improvedGross margin up on the prior year56.65% → 58.19%
- More efficientAsset turnover rose0.46 → 0.49