International Business Machines Corporation (IBM) Cash Flow Statement
Where IBM’s cash came from and went, 2025
December 31, 2025 · U.S. dollars- Cash from operations
- $13.19B −1.9% vs 2024
- Capital expenditures
- $1.09B 1.6% of revenue
- Free cash flow
- $12.10B 17.9% margin
- Returned to shareholders
- $7.27B 60% of free cash flow
- Change in cash
- −$520.0M cash at year-end $13.64B
Cash from operations
$13.19B
Capital expenditures
−$1.09B
Investments (net)
−$391.0M
Acquisitions & other
−$8.82B
Dividends
−$6.25B
Share buybacks (net)
−$1.02B
Net borrowing (repayment)
+$2.87B
Shares issued
+$710.0M
Other financing
−$139.0M
Currency & other
+$418.0M
Change in cash
−$520.0M
Drawn to scale: where the cash came from and how it was used. Hover for values.
IBM operating cash flow, capex and free cash flow
Operating cash flowCapital expendituresFree cash flowFCF margin (right axis)
IBM cash flow trends, 2016–2025
| Metric | Trend | Then | Latest | Change |
|---|---|---|---|---|
| Operating cash flow | $17.08B2016 | $13.19B2025 | −2.8%/yr | |
| Capital expenditures | $4.15B2016 | $1.09B2025 | −13.8%/yr | |
| Free cash flow | $12.93B2016 | $12.10B2025 | −0.7%/yr | |
| Free cash flow margin | 16.2%2016 | 17.9%2025 | +1.7 pts | |
| Operating cash flow / net income | 1.442016 | 1.252025 | −0.19 | |
| Stock-based compensation | $544.0M2016 | $1.72B2025 | +13.6%/yr | |
| Dividends paid | $5.26B2016 | $6.25B2025 | +2.0%/yr | |
| Share buybacks (net) | $3.63B2016 | $1.02B2025 | −13.2%/yr | |
| Capex / revenue | 5.2%2016 | 1.6%2025 | −3.6 pts |
Change is the average annual growth (CAGR) or the difference between the first and latest year.
IBM cash flow by activity
OperatingInvestingFinancingChange in cash
IBM net income vs operating cash flow
Net incomeOperating cash flow
Operating cash flow above net income usually means earnings are backed by cash (depreciation and stock-based pay are non-cash expenses).
IBM cash flow statement
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||
| Net income | $10.57B | $6.02B | $6.92B | $1.64B | $5.74B | $5.59B | $9.43B | $8.73B | $5.75B | $11.87B |
| Depreciation & amortization | $5.02B | $4.67B | $4.38B | $4.80B | $6.42B | $6.70B | $6.06B | $4.48B | $4.54B | $4.38B |
| Stock-based compensation | $1.72B | $1.31B | $1.09B | $987.0M | $982.0M | $937.0M | $679.0M | $510.0M | $534.0M | $544.0M |
| Change in working capital | −$3.14B | $1.31B | $3.91B | −$2.89B | −$346.0M | $4.97B | $1.23B | $554.0M | $6.81B | $1.36B |
| Other non-cash items | −$975.0M | $131.0M | −$2.88B | $5.89B | $1.0M | $1.0M | −$2.62B | $975.0M | −$917.0M | −$1.07B |
| Cash from operating activities | $13.19B | $13.45B | $13.43B | $10.44B | $12.80B | $18.20B | $14.77B | $15.25B | $16.72B | $17.08B |
| Investing activities | ||||||||||
| Capital expenditures | −$1.09B | −$1.69B | −$1.92B | −$1.86B | −$2.38B | −$3.04B | −$2.91B | −$3.96B | −$3.77B | −$4.15B |
| Investments (net) | −$391.0M | −$4.94B | −$11.22B | −$4.20B | −$414.0M | −$153.0M | $6.99B | −$1.06B | −$3.08B | −$1.12B |
| Acquisitions & other investing | −$8.82B | $1.69B | $6.07B | $1.86B | −$3.18B | $167.0M | −$31.02B | $108.0M | −$241.0M | −$5.27B |
| Cash from investing activities | −$10.30B | −$4.94B | −$7.07B | −$4.20B | −$5.97B | −$3.03B | −$26.94B | −$4.91B | −$7.10B | −$10.54B |
| Financing activities | ||||||||||
| Dividends paid | −$6.25B | −$6.15B | −$6.02B | −$5.95B | −$5.87B | −$5.80B | −$5.71B | −$5.67B | −$5.51B | −$5.26B |
| Share repurchases & issuance (net) | −$1.02B | −$651.0M | −$416.0M | −$407.0M | −$319.0M | −$210.0M | −$1.63B | −$4.61B | −$4.53B | −$3.63B |
| Net borrowing (repayment) | $2.87B | −$880.0M | $4.50B | $1.22B | −$8.12B | −$3.71B | $16.28B | −$301.0M | $3.45B | $2.76B |
| Shares issued | $710.0M | $745.0M | $414.0M | $279.0M | $630.0M | $0 | $0 | $0 | $0 | $0 |
| Other financing | −$139.0M | −$146.0M | −$4.50B | −$103.0M | $320.0M | $0 | $98.0M | $112.0M | $174.0M | $204.0M |
| Cash from financing activities | −$3.83B | −$7.08B | −$6.02B | −$4.96B | −$13.35B | −$9.72B | $9.04B | −$10.47B | −$6.42B | −$5.92B |
| Summary | ||||||||||
| Net change in cash | −$520.0M | $1.07B | $7.42B | $1.03B | −$6.72B | $5.36B | −$3.29B | −$630.0M | $4.15B | $140.0M |
| Cash at end of period | $13.64B | $14.16B | $7.42B | $7.99B | $6.96B | $13.68B | $8.17B | $11.38B | $11.97B | $7.83B |
| Free cash flow | $12.10B | $11.76B | $13.43B | $8.57B | $10.41B | $15.15B | $11.86B | $11.28B | $12.95B | $12.93B |
| Free cash flow margin | 17.9% | 18.7% | 21.7% | 14.2% | 18.2% | 20.6% | 20.6% | 14.2% | 16.4% | 16.2% |
| Capex / revenue | 1.6% | 2.7% | 3.1% | 3.1% | 4.2% | 4.1% | 5.0% | 5.0% | 4.8% | 5.2% |
| Operating cash flow / net income | 1.25 | 2.23 | 1.94 | 6.37 | 2.23 | 3.26 | 1.57 | 1.75 | 2.91 | 1.44 |
| Jun '26 | Mar '26 | Dec '25 | Sep '25 | Jun '25 | Mar '25 | Dec '24 | Sep '24 | Jun '24 | Mar '24 | Dec '23 | Sep '23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||||
| Net income | $2.17B | $1.22B | $5.58B | $1.74B | $2.19B | $1.05B | $2.91B | −$330.0M | $1.83B | $1.60B | $3.29B | $1.70B |
| Depreciation & amortization | $1.35B | $1.27B | $1.30B | $1.28B | $1.26B | $1.18B | $1.11B | $1.27B | $1.16B | $1.13B | $1.15B | $1.09B |
| Stock-based compensation | $498.0M | $506.0M | $430.0M | $443.0M | $441.0M | $401.0M | $345.0M | $330.0M | $316.0M | $320.0M | $290.0M | $286.0M |
| Change in working capital | −$1.35B | $2.19B | −$2.33B | −$383.0M | −$2.18B | $1.76B | $1.92B | −$759.0M | −$1.21B | $1.36B | $927.0M | −$27.0M |
| Other non-cash items | −$67.0M | −$12.0M | −$930.0M | −$5.0M | −$18.0M | −$21.0M | −$1.96B | $2.37B | −$26.0M | −$253.0M | −$1.19B | −$1.0M |
| Cash from operating activities | $2.60B | $5.17B | $4.04B | $3.08B | $1.70B | $4.37B | $4.33B | $2.88B | $2.07B | $4.17B | $4.46B | $3.06B |
| Investing activities | ||||||||||||
| Capital expenditures | −$229.0M | −$391.0M | −$382.0M | −$255.0M | −$210.0M | −$395.0M | −$444.0M | −$424.0M | −$444.0M | −$373.0M | −$448.0M | −$282.0M |
| Investments (net) | −$107.0M | $359.0M | $2.36B | −$438.0M | $1.70B | −$12.98B | −$1.38B | −$1.59B | $2.24B | −$4.21B | $2.84B | −$1.95B |
| Acquisitions & other investing | −$145.0M | −$10.46B | −$558.0M | $255.0M | $210.0M | $395.0M | $444.0M | $424.0M | $444.0M | $373.0M | $448.0M | −$7.67B |
| Cash from investing activities | −$481.0M | −$10.49B | $1.42B | −$438.0M | $1.70B | −$12.98B | −$1.38B | −$1.59B | $2.24B | −$4.21B | $2.84B | −$9.91B |
| Financing activities | ||||||||||||
| Dividends paid | −$1.59B | −$1.58B | −$1.57B | −$1.57B | −$1.56B | −$1.55B | −$1.55B | −$1.54B | −$1.54B | −$1.52B | −$1.52B | −$1.51B |
| Share repurchases & issuance (net) | −$115.0M | −$350.0M | −$167.0M | −$414.0M | −$153.0M | −$284.0M | −$112.0M | −$189.0M | −$151.0M | −$199.0M | −$64.0M | −$98.0M |
| Net borrowing (repayment) | −$4.21B | $4.51B | −$1.81B | −$1.11B | −$1.30B | $7.09B | −$103.0M | −$1.26B | — | — | — | −$1.55B |
| Shares issued | $240.0M | $178.0M | $175.0M | $134.0M | $185.0M | $216.0M | $0 | $0 | $125.0M | $260.0M | $0 | $0 |
| Other financing | −$50.0M | −$42.0M | −$30.0M | −$55.0M | −$22.0M | −$32.0M | $85.0M | $225.0M | −$2.95B | $3.34B | −$33.0M | $31.0M |
| Cash from financing activities | −$5.73B | $2.72B | −$3.41B | −$3.01B | −$2.85B | $5.44B | −$1.68B | −$2.77B | −$4.51B | $1.88B | −$1.61B | −$3.13B |
| Summary | ||||||||||||
| Net change in cash | −$3.65B | −$2.78B | $2.04B | −$426.0M | $865.0M | −$3.00B | $946.0M | −$1.26B | −$287.0M | $1.68B | $5.81B | −$2.15B |
| Cash at end of period | $7.22B | $10.86B | $13.64B | $11.60B | $12.03B | $11.16B | $14.16B | $13.21B | $14.48B | $14.77B | $13.09B | $1.54B |
| Free cash flow | $2.37B | $4.78B | $3.66B | $2.83B | $1.49B | $3.98B | $3.89B | $2.46B | $1.62B | $3.79B | $4.01B | $2.77B |
| Free cash flow margin | 13.8% | 30.0% | 18.6% | 17.3% | 8.8% | 27.3% | 22.1% | 16.4% | 10.3% | 26.2% | 23.1% | 18.8% |
| Capex / revenue | 1.3% | 2.5% | 1.9% | 1.6% | 1.2% | 2.7% | 2.5% | 2.8% | 2.8% | 2.6% | 2.6% | 1.9% |
| Operating cash flow / net income | 1.20 | 4.25 | 0.72 | 1.77 | 0.78 | 4.15 | 1.49 | — | 1.13 | 2.60 | 1.36 | 1.79 |
Negative numbers are cash paid out. Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported; data from EODHD.
IBM cash generation
In fiscal 2025 (ended December 31, 2025), IBM generated $13.2 billion of cash from operations (down 1.9%) and spent $1.1 billion on capital expenditures, leaving free cash flow of $12.1 billion, 17.9% of revenue. It returned $7.3 billion to shareholders through dividends ($6.3 billion) and net share buybacks ($1.0 billion). Cash and equivalents fell by $520.0 million over the year.
Related: IBM income statement, IBM balance sheet, IBM dividend history. See the IBM stock overview for the latest quote and news.
IBM cash flow FAQ
What is IBM's free cash flow?
IBM's free cash flow was $12.1 billion in fiscal 2025: $13.2 billion of operating cash flow minus $1.1 billion of capital expenditures It was $11.8 billion a year earlier..
How much cash does IBM generate from operations?
IBM generated $13.2 billion of cash from operating activities in fiscal 2025, 1.25 times its net income of $10.6 billion.
How much does IBM spend on capital expenditures?
IBM spent $1.1 billion on capital expenditures in fiscal 2025, 1.6% of revenue, compared with $1.7 billion the year before.
How much stock does IBM buy back?
IBM spent $1.0 billion on net share repurchases in fiscal 2025.
How much does IBM pay in dividends?
IBM paid $6.3 billion in dividends in fiscal 2025, 51.7% of free cash flow.