FirmAtlas
Company handbook · IBM · Prepared by FirmAtlas · firmatlas.app · printed 2026-10-17
IBM · CIK 51143 · LATEST FILING: 10-Q JUN '26 · FILED JUL 23, 2026
INTERNATIONAL BUSINESS MACHINES CORPORATION
$232.14
−1.98 (−0.85%)
Close, Oct 16, 2026 · 52-week $199–332
IBM sells software (Red Hat, automation, data and AI, security, transaction processing), consulting and IT services, and hardware: mainframes (IBM Z), servers and storage.
Business
- SegmentsSoftware 44% · Consulting 31% · Infrastructure 23% · Financing 1% (FY25)
- ProductsProduct 53% · Technology Service 45% · Financial Service 1% (FY25)
- CustomersLarge businesses and governments, especially banks, insurers and other regulated industries; sold by its own sales force and through business partners
- Cash useFY24–FY25: dividends $12.4B · acquisitions $11.6B · capex $2.1B
Reinvested 52% of operating cash flow · returned 51% of free cash flow
Last fiscal year
INTERNATIONAL BUSINESS MACHINES CORPORATION reported revenue of $67.5B for the year ended Dec 31, 2025 (FY25), up 7.6% from FY24. Net income was $10.6B, operating cash flow $13.2B and free cash flow $12.1B. Source: 10-K filed Feb 24, 2026.
Market cap
$217.5B
P/E
20.3
P/B
6.3
Div yield
2.90%
Revenue 1Y
7.6%/yr
EPS 1Y
73.7%/yr
Shares 1Y
+1%
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Median
Daily closes, split-adjusted · ratios at each fiscal year end
Company
CEOArvind Krishna
HQArmonk, NY
AuditorPricewaterhouseCoopers LLP
Year endsDecember
Revenue by segment · FY25
Software44%
Consulting31%
Infrastructure23%
Financing1%
Compounded growth & averages
10Y
5Y
3Y
TTM
Share price
4.2%
9.9%
18.6%
−15.9%
Upgrade to see 10 years
Share price: yearly compound rate of the traded close; the last column is the past year.
Where the cash went · FY24–FY25
$26.1B deployed
Capex
$2.1B
8.2%
Acquisitions
$11.6B
44.3%
Dividends
$12.4B
47.5%
Operating cash flow over the period: $26.6B. Total debt changed by +$5.0B. R&D of $15.8B is already inside operating costs.
Growth engines
How much of the profit growth came from new investment, and how much from running the business better.
Upgrade to see 10 years
Financials
Last 2 years · Upgrade to see 10 years · USD millions · each year opens its 10-K · change vs previous year
Last 4 quarters · USD millions · quarter-end month shown · change vs same quarter a year earlier
TTM = the last four quarters, to Jun '26. Balance-sheet rows show that latest quarter. “—” where the quarters do not add up to the annual figures. No TTM for cash: our quarterly rows do not hold short-term investments yet, and annual cash includes them.
Income
Balance sheet
Total assets
137,175
151,880+10.7%
152,099
Cash & short-term investments
14,160
13,640−3.7%
—
Accounts receivable
6,804
8,112+19.2%
—
Inventory
1,289
1,220−5.4%
—
Net PP&E
5,731
5,899+2.9%
—
Other assets
109,191
123,009+12.7%
—
Total liabilities
109,868
119,232+8.5%
117,647
Accounts payable
4,032
4,756+18.0%
—
Total debt
49,884
54,836+9.9%
56,212
Other liabilities
55,952
59,640+6.6%
—
Shareholders’ equity
27,307
32,648+19.6%
34,452
Total liabilities = total assets − shareholders’ equity, so it includes minority interest where a company has one.
Cash flow statement · as filed
Cash from operations
13,445
13,193−1.9%
14,888
Net income
6,023
10,593+75.9%
—
Depreciation & amortization
2,168
2,284+5.4%
—
Stock-based compensation
1,311
1,715+30.8%
—
Working capital & other
3,943
(1,399)−135.5%
—
Cash from investing
(4,937)
(10,302)n/m
—
Capex
(1,048)
(1,091)n/m
—
PP&E sold
557
121−78.3%
—
Acquisitions
(3,289)
(8,294)n/m
—
Investments bought
(7,762)
(10,095)n/m
—
Investments sold / matured
6,544
9,704+48.3%
—
Other investing
61
(647)−1160.7%
—
Cash from financing
(7,079)
(3,829)n/m
—
Debt repaid
(6,615)
(5,489)n/m
—
Dividends
(6,147)
(6,255)n/m
—
Shares issued
317
233−26.5%
—
Other financing
5,366
7,682+43.2%
—
Net change in cash
1,071
(520)−148.6%
—
Free cash flow (OCF − capex)
12,397
12,102−2.4%
13,790
Where the cash went
Operating cash flow
13,445
13,193−1.9%
14,888
Reinvested in the business
4,337
9,385+116.4%
—
% of operating cash flow
32.3%
71.1%
Capex
1,048
1,091+4.1%
1,098
Acquisitions
3,289
8,294+152.2%
—
R&D (memo, already in costs)
7,479
8,316+11.2%
—
Free cash flow
12,397
12,102−2.4%
13,790
YoY
−2.4%
Returned to shareholders
6,147
6,255+1.8%
—
% of free cash flow
49.6%
51.7%
Dividends
6,147
6,255+1.8%
—
Change in total debt
—
4,952
—
Cash left over
—
2,505
—
FCF conversion (FCF ÷ net income)
205.8%
114.2%−91.6 pp
—
Owner earnings
—
11,271
—
Owner earnings margin
—
16.7%
—
Returns & ratios
Income
Sep '25
Dec '25
Mar '26
Jun '26
Revenue
16,331
19,686
15,917
17,162
vs year-ago quarter
Gross profit
9,360
11,929
8,950
9,907
Gross margin
57.3%
60.6%
56.2%
57.7%
Net income
1,744
5,600
1,216
2,165
vs year-ago quarter
Net margin
10.7%
28.4%
7.6%
12.6%
EPS (diluted, $)
1.84
5.98
1.28
2.27
vs year-ago quarter
Balance sheet
Sep '25
Dec '25
Mar '26
Jun '26
Total assets
146,312
151,880
156,229
152,099
Cash & equivalents
11,600
13,640
10,864
7,217
Total debt
55,174
54,836
57,706
56,212
Shareholders’ equity
27,905
32,648
32,974
34,452
Cash flow
Sep '25
Dec '25
Mar '26
Jun '26
Operating cash flow
3,082
4,040
5,169
2,597
Capex
255
382
232
229
Free cash flow
2,827
3,658
4,937
2,368
vs year-ago quarter