International Business Machines Corporation (IBM) Income Statement
IBM 2025 at a glance
Fiscal year ended December 31, 2025 · U.S. dollarsIBM revenue and net income
Where IBM's revenue goes
2025Each bar shows an amount and its share of revenue. IBM kept 15.7% of revenue as net income.
IBM profit margins
IBM growth rates
to 2025| 1 year | 3 years | 5 years | 10 years | |
|---|---|---|---|---|
| Revenue | +7.6% | +3.7% | −1.7% | −1.9% |
| Gross profit | +10.5% | +6.3% | +2.0% | −0.3% |
| Operating income | +24.0% | +15.2% | +12.6% | −2.7% |
| Net income | +75.9% | +86.2% | +13.6% | −2.2% |
| EPS (diluted) | +12.0% | +8.3% | +5.9% | −2.5% |
1-year change and average annual growth (CAGR) over 3, 5 and 10 fiscal years. "—" when a starting value was zero or negative.
IBM quarterly EPS vs estimates
IBM beat the analyst EPS estimate in 8 of the last 8 quarters. Next report: October 21, 2026 (estimate $2.87).
IBM income statement
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $67.54B | $62.75B | $61.86B | $60.53B | $57.35B | $73.62B | $57.71B | $79.59B | $79.14B | $79.92B |
| Cost of revenue | $28.24B | $27.20B | $27.56B | $27.84B | $25.86B | $38.05B | $26.18B | $42.66B | $42.20B | $41.40B |
| Gross profit | $39.30B | $35.55B | $34.30B | $32.69B | $31.49B | $35.58B | $31.53B | $36.94B | $36.94B | $38.52B |
| Research & development | $8.32B | $7.48B | $6.63B | $6.57B | $6.49B | $6.33B | $5.91B | $5.38B | $5.59B | $5.73B |
| Sales, general & admin | $18.14B | $17.91B | $19.19B | $16.10B | $17.70B | $21.85B | $17.21B | $17.90B | $17.91B | $18.95B |
| Total operating expenses | $26.80B | $25.48B | $26.79B | $24.51B | $24.65B | $28.68B | $24.00B | $23.72B | $23.80B | $24.88B |
| Operating income | $12.49B | $10.07B | $7.51B | $8.17B | $6.83B | $6.89B | $7.54B | $13.22B | $13.14B | $14.68B |
| Interest income | $645.0M | $747.0M | $591.0M | $162.0M | $52.0M | $105.0M | $349.0M | $264.0M | $144.0M | $108.0M |
| Interest expense | $1.94B | $1.71B | $1.61B | $1.22B | $1.16B | $1.29B | $1.02B | $686.0M | $663.0M | $630.0M |
| Income before taxes | $10.33B | $5.80B | $8.69B | $1.16B | $4.84B | $4.64B | $7.21B | $11.34B | $11.40B | $12.33B |
| Income taxes | −$242.0M | −$218.0M | $1.18B | −$626.0M | $124.0M | −$864.0M | $60.0M | $2.62B | $5.64B | $449.0M |
| Net income | $10.59B | $6.02B | $7.50B | $1.64B | $5.74B | $5.59B | $9.43B | $8.73B | $5.75B | $11.87B |
| EBITDA | $17.28B | $12.18B | $7.51B | $7.17B | $13.44B | $12.71B | $14.61B | $16.55B | $16.56B | $17.34B |
| EPS (diluted) | $11.57 | $10.33 | $9.61 | $9.12 | $9.97 | $8.67 | $12.81 | $13.82 | $13.83 | $13.60 |
| Gross margin | 58.2% | 56.7% | 55.4% | 54.0% | 54.9% | 48.3% | 54.6% | 46.4% | 46.7% | 48.2% |
| Operating margin | 18.5% | 16.1% | 12.1% | 13.5% | 11.9% | 9.4% | 13.1% | 16.6% | 16.6% | 18.4% |
| Net margin | 15.7% | 9.6% | 12.1% | 2.7% | 10.0% | 7.6% | 16.3% | 11.0% | 7.3% | 14.9% |
| Jun '26 | Mar '26 | Dec '25 | Sep '25 | Jun '25 | Mar '25 | Dec '24 | Sep '24 | Jun '24 | Mar '24 | Dec '23 | Sep '23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $17.16B | $15.92B | $19.69B | $16.33B | $16.98B | $14.54B | $17.55B | $14.97B | $15.77B | $14.46B | $17.38B | $14.75B |
| Cost of revenue | $7.25B | $6.97B | $7.76B | $6.74B | $7.00B | $6.51B | $7.11B | $6.55B | $6.82B | $6.72B | $7.11B | $6.73B |
| Gross profit | $9.91B | $8.95B | $11.93B | $9.59B | $9.98B | $8.03B | $10.44B | $8.42B | $8.95B | $7.74B | $10.27B | $8.02B |
| Research & development | $2.31B | $2.17B | $2.19B | $2.08B | $2.10B | $1.95B | $1.97B | $1.88B | $1.84B | $1.80B | $1.75B | $1.69B |
| Sales, general & admin | $4.98B | $5.32B | $4.83B | $4.75B | $4.67B | $4.26B | $4.59B | $4.31B | $4.65B | $4.37B | $4.50B | $4.18B |
| Total operating expenses | $7.29B | $7.59B | $7.08B | $6.93B | $6.89B | $6.27B | $6.54B | $6.24B | $6.51B | $6.18B | $6.27B | $5.92B |
| Operating income | $2.62B | $1.36B | $4.85B | $2.66B | $3.09B | $1.76B | $3.90B | $2.18B | $2.43B | $1.56B | $4.00B | $2.10B |
| Interest income | $86.0M | $152.0M | $132.0M | $150.0M | $172.0M | $191.0M | $150.0M | $170.0M | $217.0M | $210.0M | $143.0M | $156.0M |
| Interest expense | $486.0M | $473.0M | $478.0M | $492.0M | $510.0M | $455.0M | $424.0M | $429.0M | $427.0M | $432.0M | $405.0M | $412.0M |
| Income before taxes | $2.48B | $1.39B | $4.14B | $2.43B | $2.60B | $1.16B | $3.31B | −$802.0M | $2.22B | $1.07B | $3.76B | $1.87B |
| Income taxes | $313.0M | $172.0M | −$1.44B | $686.0M | $404.0M | $103.0M | $379.0M | −$485.0M | $389.0M | −$502.0M | $474.0M | $159.0M |
| Net income | $2.17B | $1.22B | $5.60B | $1.74B | $2.19B | $1.05B | $2.91B | −$330.0M | $1.83B | $1.60B | $3.29B | $1.70B |
| EBITDA | $2.96B | $3.13B | $5.92B | $4.21B | $4.37B | $2.79B | $4.84B | $895.0M | $3.80B | $2.64B | $5.32B | $3.38B |
| EPS (diluted) | $2.93 | $1.91 | $4.52 | $2.65 | $2.80 | $1.60 | $3.92 | $2.30 | $2.43 | $1.68 | $3.87 | $2.20 |
| Gross margin | 57.7% | 56.2% | 60.6% | 58.7% | 58.8% | 55.2% | 59.5% | 56.3% | 56.8% | 53.5% | 59.1% | 54.4% |
| Operating margin | 15.2% | 8.5% | 24.6% | 16.3% | 18.2% | 12.1% | 22.2% | 14.5% | 15.4% | 10.8% | 23.0% | 14.3% |
| Net margin | 12.6% | 7.6% | 28.4% | 10.7% | 12.9% | 7.3% | 16.6% | −2.2% | 11.6% | 11.1% | 18.9% | 11.6% |
Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported in IBM's financial statements (latest annual report filed February 24, 2026); data from EODHD. Sales, general & administrative expenses include sales and marketing.
IBM financial results
In fiscal year 2025 (ended December 31, 2025), IBM reported revenue of $67.5 billion, up 7.6% from the year before. It had net income of $10.6 billion (up 75.9%), a net profit margin of 15.7%. Diluted earnings per share came to $11.57. Over five years revenue grew at an average rate of −1.7% a year.
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IBM income statement FAQ
What is IBM's annual revenue?
IBM reported total revenue of $67.5 billion for fiscal year 2025, which ended on December 31, 2025. That was up 7.6% from $62.8 billion the previous year.
Is IBM profitable?
Yes. IBM reported net income of $10.6 billion in fiscal 2025, a net profit margin of 15.7%; its operating margin was 18.5%.
What is IBM's gross margin?
IBM's gross margin was 58.2% in fiscal 2025: for every $100 of revenue, IBM kept $58 after the direct cost of its products and services.
How much does IBM spend on research and development?
IBM spent $8.3 billion on research and development in fiscal 2025, 12.3% of revenue.
How fast is IBM growing?
Revenue grew −1.7% a year on average over the last five fiscal years, from $73.6 billion to $67.5 billion.
What are IBM's earnings per share?
IBM earned $11.57 per diluted share in fiscal 2025, compared with $10.33 a year earlier.
When will IBM report its next earnings?
IBM is expected to report results for the quarter ending September 30, 2026 on October 21, 2026 after the market closes.
When does IBM's fiscal year end?
IBM's fiscal year ends in December. The latest annual report covers the year ended December 31, 2025 and was filed on February 24, 2026.