INTERNATIONAL BUSINESS MACHINES CORP financial statements

Income statement, balance sheet and cash flow statement for the last 10 fiscal years, taken from the XBRL data INTERNATIONAL BUSINESS MACHINES CORP files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	79,919	79,139	79,591	57,714	55,179	57,350	60,530	61,860	62,753	67,535
Cost of revenue	41,403	42,196	42,655	26,181	24,314	25,865	27,842	27,560	27,201	28,239
Gross profit	38,516	36,943	36,936	31,533	30,865	31,486	32,687	34,300	35,551	39,297
Research and development	5,726	5,590	5,379	5,910	6,262	6,488	6,567	6,775	7,479	8,316
Selling, general and administrative	20,869	19,680	19,366	18,724	20,561	18,745	18,609	19,003	19,688	20,123
Selling and marketing	1,327	1,445	1,466	1,591	1,509	1,413	1,330	1,237	1,173	1,129
Interest expense	630	615	723	1,344	1,288	1,155	1,216	1,607	1,712	1,935
Interest income					105	52	162	670	747	645
Other non-operating income					156	225	443	266	877	221
Pre-tax income	12,330	11,400	11,342	7,206	2,572	4,837	1,156	8,690	5,797	10,328
Income tax	449	5,642	2,619	60	-1,360	124	-626	1,176	-218	-242
Income from continuing operations	11,881	5,758	8,723	7,146	3,932	4,712	1,783	7,514	6,015	10,571
Net income	11,872	5,753	8,728	9,431	5,590	5,743	1,639	7,502	6,023	10,593
EPS, basic	12.43	6.17	9.57	10.63	6.28	6.41	1.82	8.23	6.53	11.36
EPS, diluted	12.38	6.14	9.52	10.56	6.23	6.35	1.80	8.14	6.43	11.17
Shares, basic (weighted)	955	933	912	887	890	896	903	911	922	932
Shares, diluted (weighted)	959	937	916	893	897	905	912	922	937	949
Dividend per share	5.50	5.90	6.21	6.43	6.51	6.55	6.59	6.63	6.67	6.71

Balance sheet

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Cash and equivalents	7,826	11,972	11,379	8,172	13,188	6,650	7,886	13,068	13,947	13,587
Short-term investments	701	608	618	696	600
Receivables	9,182	8,928	7,432	7,870	5,790	6,754	6,541	7,214	6,804	8,112
Inventory	1,553	1,583	1,682	1,619	1,812	1,649	1,552	1,161	1,289	1,220
Other current assets	4,564	1,860	2,378	2,101	2,089	3,466	2,611	2,639	2,520	2,530
Total current assets	43,888	49,735	49,146	38,420	39,165	29,539	29,118	32,908	34,482	36,944
Property, plant and equipment	10,830	11,116	10,792	10,010	6,205	5,694	5,334	5,501	5,731	5,899
Lease right-of-use assets				3,850	3,566	3,222	2,878	3,220	3,197	3,129
Goodwill	36,199	36,788	36,265	52,471	53,765	55,643	55,949	60,178	60,706	67,717
Intangible assets	4,688	3,742	3,087	15,235	13,739	12,511	11,184	11,036	10,660	11,391
Long-term investments	8	11
Total assets	117,470	125,356	123,382	152,186	155,971	132,001	127,243	135,241	137,175	151,880
Accounts payable	6,209	6,451	6,558	4,896	4,033	3,955	4,051	4,132	4,032	4,756
Accrued liabilities	3,577	3,644	3,310	3,406	3,056	3,204	3,481	3,501	3,605	4,114
Deferred revenue	11,035	11,552	11,165	12,026	11,980	12,518	12,032	13,451	13,907	16,101
Short-term debt	7,513	6,987	10,207	7,522	6,986	6,764	4,751	6,425	5,059	6,424
Total current liabilities	36,275	37,363	38,227	37,701	39,869	33,619	31,505	34,122	33,142	38,658
Long-term debt	34,655	39,837	35,605	54,102	54,217	44,917	46,189	50,121	49,884	54,836
Lease liabilities				3,879	2,720	2,462	2,190	2,568	2,655	2,547
Other non-current liabilities	7,477	9,965	12,174	14,526	14,180	13,996	12,243	11,475	11,048	9,810
Total liabilities	99,078	107,631	106,452	131,202	135,244	113,005	105,222	112,628	109,783	119,139
Total debt	40,893	45,052	42,656	54,102	54,217	44,917	46,189	50,121	49,884	54,836
Paid-in capital	53,935	54,566	55,151	55,895	56,556	57,319	58,343	59,643	61,380	63,318
Retained earnings	152,759	153,126	159,206	162,954	162,717	154,209	149,825	151,276	151,163	155,648
Treasury stock	-159,050	-163,507	-168,071	-169,413	-169,339	-169,392	-169,484	-169,624	-169,968	-170,605
Other comprehensive income	-29,398	-26,592	-29,490	-28,597	-29,337	-23,234	-16,740	-18,761	-15,269	-15,713
Shareholders' equity	18,246	17,594	16,796	20,841	20,597	18,901	21,944	22,533	27,307	32,648
Minority interests	146	131	134	144	129	95	77	80	86	93
Total equity	18,392	17,725	16,929	20,985	20,727	18,996	22,021	22,613	27,393	32,740
Total liabilities and equity	117,470	125,356	123,382	152,186	155,971	132,001	127,243	135,241	137,175	151,880
Shares outstanding	946	922	892	887	893	898	906	915	926	937

Cash flow statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	11,872	5,753	8,728	9,431	5,590	5,743	1,639	7,502	6,023	10,593
Depreciation and amortization	2,837	3,021	3,127	4,209	4,227	3,888	2,407	2,109	2,168	2,284
Stock-based compensation	544	534	510	679	937	982	987	1,133	1,311	1,715
Deferred income tax	-1,132	-931	853	-1,527	-3,203	-2,001	-2,726	-1,114	-2,330	-957
Change in receivables	712	1,297	1,006	502	5,297	1,372	-539	725	-374	-4,278
Change in inventory	-14	18	-127	67	-209	138	71	390	-166	70
Change in payables	197	47	126	-503	138	85	213	65	-13	624
Cash from operations	17,084	16,724	15,247	14,770	18,197	12,796	10,435	13,931	13,445	13,193
Capital expenditures	-3,567	-3,229	-3,395	-2,286	-2,618	-2,062	-1,346	-1,245	-1,048	-1,091
Acquisitions	-5,696	-496	-139	-32,630	-336	-3,293	-2,348	-5,082	-3,289	-8,294
Purchases of investments	-5,853	-4,949	-7,041	-3,693	-6,246	-3,561	-5,930	-11,143	-7,762	-10,095
Sales and maturities of investments	5,692	3,910	6,487	3,961	5,618	3,147	4,665	10,647	6,544	9,704
Cash from investing	-10,928	-7,081	-4,913	-26,936	-3,028	-5,975	-4,202	-7,070	-4,937	-10,302
Stock issued								51	317	233
Share buybacks	-3,502	-4,340	-4,443	-1,361
Dividends paid	-5,256	-5,506	-5,666	-5,707	-5,797	-5,869	-5,948	-6,040	-6,147	-6,255
Cash from financing	-5,917	-6,418	-10,469	9,042	-9,721	-13,354	-4,958	-1,769	-7,079	-3,829
Exchange rate effect	-51	937	-495	-167	-87	-185	-244	9	-359	418
Net change in cash	188	4,161	-630	-3,290	5,361	-6,718	1,032	5,101	1,071	-520
Free cash flow	13,517	13,495	11,852	12,484	15,579	10,734	9,089	12,686	12,397	12,102
Interest paid	1,158	1,208	1,423	1,685	1,830	1,512	1,401	1,668	1,978	2,042
Income taxes paid	1,078	1,597	1,745	2,091	2,253	2,103	1,865	1,564	1,723	1,948

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $225.51 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	58.1%	Gross profit / revenue.
Pre-tax margin	15.1%	Pre-tax income / revenue.
Net margin	15.5%	Net income / revenue.
FCF margin	20.0%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	21.5%	Cash from operations / revenue.
Effective tax rate	-2.5%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	31.1%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	7.1%	Net income / average total assets.
R&D / revenue	12.7%	Research and development expense / revenue.
SG&A / revenue	29.4%	Selling, general and administrative expense / revenue.
Stock-based pay / revenue	2.7%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	1.6%	Capital expenditures / revenue.
D&A / revenue	3.3%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	7.6%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	3.7%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	4.1%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	10.5%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	6.3%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	4.9%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Net income growth, 1y	75.9%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	86.3%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Net income CAGR, 5y	13.6%	Compound annual growth of net income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EPS growth, 1y	73.7%	EPS vs the same period a year earlier. Only from a positive base.
EPS CAGR, 3y	83.8%	Compound annual growth of eps over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EPS CAGR, 5y	12.4%	Compound annual growth of eps over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating cash flow growth, 1y	-1.9%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	8.1%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	-6.2%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	-2.4%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	10.0%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	-4.9%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Dividend per share growth, 1y	0.6%	Dividend per share vs the same period a year earlier. Only from a positive base.
Dividend per share CAGR, 3y	0.6%	Compound annual growth of dividend per share over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Dividend per share CAGR, 5y	0.6%	Compound annual growth of dividend per share over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	19.6%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	14.2%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value CAGR, 5y	9.7%	Compound annual growth of book value over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	10.7%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	6.1%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	-0.5%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	1.2%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	1.3%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	1.1%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	0.79x	Current assets / current liabilities.
Quick ratio	0.37x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	0.20x	(Cash + short-term investments) / current liabilities.
Debt / equity	1.63x	Total debt / shareholders' equity. Not shown when equity is negative.
Debt / assets	37.0%	Total debt / total assets.
Liabilities / assets	77.3%	Total liabilities / total assets.
Net debt	$49.04B	Total debt - cash - short-term investments. Negative means more cash than debt.
Working capital	-$7.51B	Current assets - current liabilities.
Goodwill and intangibles / assets	58.2%	(Goodwill + intangible assets) / total assets.
Tangible book value	-$54.10B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.45x	Revenue / average total assets.
Fixed asset turnover	12.0x	Revenue / average property, plant and equipment.
Inventory turnover	16.6x	Cost of revenue / average inventory.
Days inventory	22 days	365 x average inventory / cost of revenue.
Receivables turnover	11.4x	Revenue / average receivables.
Days sales outstanding	32 days	365 x average receivables / revenue.
Days payables	55 days	365 x average accounts payable / cost of revenue.
Cash conversion cycle	-1 days	Days inventory + days sales outstanding - days payables.
FCF conversion	128.6%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	7.4%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$11.25	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share	$72.48	Revenue / diluted weighted shares.
FCF per share	$14.47	Free cash flow / diluted weighted shares.
Operating cash flow per share	$15.62	Cash from operations / diluted weighted shares.
Book value per share	$36.14	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	-$56.75	Tangible book value / shares outstanding.
Cash per share	$7.52	(Cash + short-term investments) / shares outstanding.
Payout ratio	58.8%	Dividends paid / net income, when net income is positive.
Dividends / FCF	45.8%	Dividends paid / free cash flow, when free cash flow is positive.

Valuation

Metric	Value	How it is calculated
Market cap	$212.46B	Share price x shares outstanding.
Enterprise value	$261.50B	Market cap + total debt - cash - short-term investments.
P/E	19.8x	Market cap / net income. Only when net income is positive.
P/S	3.07x	Market cap / revenue.
P/B	6.17x	Market cap / shareholders' equity. Only when equity is positive.
P/FCF	15.4x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	14.3x	Market cap / cash from operations, when positive.
EV/Sales	3.78x	Enterprise value / revenue.
EV/FCF	19.0x	Enterprise value / free cash flow, when both are positive.
FCF yield	6.5%	Free cash flow / market cap.
Earnings yield	5.0%	Net income / market cap (the inverse of P/E).
Dividend yield	3.0%	Dividends paid over the period / market cap.
Shareholder yield	3.0%	(Dividends paid + share buybacks) / market cap.
PEG	0.24x	P/E / EPS growth per year over 3 years (in percent). Only when both are positive.

What was INTERNATIONAL BUSINESS MACHINES CORP's revenue in fiscal 2025?

INTERNATIONAL BUSINESS MACHINES CORP reported revenue of $67.54B for fiscal 2025, 7.6% higher than the year before.

Was INTERNATIONAL BUSINESS MACHINES CORP profitable in fiscal 2025?

Yes. Net income was $10.59B, a net margin of 15.7%.

How much free cash flow did INTERNATIONAL BUSINESS MACHINES CORP generate in fiscal 2025?

Cash from operations of $13.19B minus capital expenditures of $1.09B left free cash flow of $12.10B.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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