International Business Machines Corporation
Financial Performance
IBM Revenue & Financials
Revenue
$67.5B (FY2025)
Market Cap
$216.3B
Net Income
$10.6B
Employees
264,300
What is IBM's revenue?
IBM had $67.5B in revenue for fiscal year 2025, up 7.6% from 2024. Net income was $10.6B.
- Latest revenue
- $67.5B (FY2025)
- Year-over-year
- +7.6%
- Growth rate (CAGR)
- -1.9% over 9 years
- Peak revenue
- $79.9B (FY2016)
- Years of data
- 10
- Employees
- 264,300
- How much profit does IBM make?
- IBM reported net income of $10.6B for fiscal year 2025. sec.gov
- How many employees does IBM have?
- IBM has about 264,300 employees.
Financial Analysis
IBM's reported revenue fell from about $80 billion in 2016-2018 to $57.4 billion in 2021, mostly because the Kyndryl spin-off and earlier divestitures removed low-margin services. Since then the slimmer company has grown each year: $60.5 billion in 2022, $61.9 billion in 2023, $62.8 billion in 2024, and $67.5 billion in 2025 (up 7.6%). FY2025 net income from continuing operations was $10.6 billion and free cash flow was $14.7 billion. In Q2 2026, revenue rose 1% to $17.16 billion: software grew 5% to $7.76 billion, consulting was flat at $5.33 billion, and infrastructure fell 7% to $3.84 billion as IBM Z sales lapped the z17 launch. Some large software deals slipped out of the quarter, so IBM cut its 2026 constant-currency revenue growth forecast to 4-5% while keeping its target of about $1 billion more free cash flow than in 2025. IBM (International Business Machines) sustains a strong market valuation of roughly $170 billion through its enterprise consulting, hybrid cloud, and AI divisions.
Revenue Trend Analysis
YoY Change
+7.6%
9-Year CAGR
-1.9%
Peak Year
2016
Trend
Mostly Growing
International Business Machines Corporation has 10 full fiscal year figures on this page, compounding at -1.9% annually over 9 years. The most recent year saw a 7.6% increase versus the prior year. Annual revenue peaked in fiscal year 2016 at $79.9B. Of 9 comparable year-over-year steps, 6 showed growth and 3 showed a decline.
Annual revenue history
Click any row to see year details.
International Business Machines Corporation balance sheet and cash flow
Balance-sheet figures are as of each fiscal year end; cash-flow figures cover the fiscal year. Taken from the company's annual report on Form 10-K, linked on each row. Free cash flow here is operating cash flow less capital expenditures, calculated by CorpDigest.
| Fiscal Year | Operating cash flow | Capital expenditures | Total assets | Total liabilities | Shareholders' equity | Free cash flow | Source |
|---|---|---|---|---|---|---|---|
| FY2025ended Dec 31, 2025 | $13.2B | $1.1B | $151.9B | $119.1B | $32.6B | $12.1B | Form 10-K |
| FY2024ended Dec 31, 2024 | $13.4B | $1B | $137.2B | $109.8B | $27.3B | $12.4B | Form 10-K |
| FY2023ended Dec 31, 2023 | $13.9B | $1.2B | $135.2B | $112.6B | $22.5B | $12.7B | Form 10-K |
| FY2022ended Dec 31, 2022 | $10.4B | $1.3B | $127.2B | $105.2B | $21.9B | $9.1B | Form 10-K |
| FY2021ended Dec 31, 2021 | $12.8B | $2.1B | $132B | $113B | $18.9B | $10.7B | Form 10-K |
| FY2020ended Dec 31, 2020 | $18.2B | $2.6B | $156B | $135.2B | $20.6B | $15.6B | Form 10-K |
| FY2019ended Dec 31, 2019 | $14.8B | $2.3B | $152.2B | $131.2B | $20.8B | $12.5B | Form 10-K |
| FY2018ended Dec 31, 2018 | $15.2B | $3.4B | $123.4B | $106.5B | $16.8B | $11.9B | Form 10-K |
| FY2017ended Dec 31, 2017 | $16.7B | $3.2B | $125.4B | $107.6B | $17.6B | $13.5B | Form 10-K |
| FY2016ended Dec 31, 2016 | $17.1B | $3.6B | $117.5B | $99.1B | $18.2B | $13.5B | Form 10-K |
Keep researching IBM
IBM Revenue and Financial FAQ
What is IBM's typical annual revenue baseline?
International Business Machines Corporation reported revenue of $67.5 billion for fiscal year 2025, up from $62.8 billion in fiscal 2024.
What are IBM's gross margin and free cash flow generation metrics?
IBM's GAAP gross margin was 57.7% in Q2 2026, with software carrying much higher margins than consulting. In FY2025 IBM generated $14.7 billion in free cash flow, and it expects about $1 billion more in 2026.
What is IBM's dividend track record and payout commitment?
IBM has paid a quarterly dividend every year since 1916 and has raised it annually for three decades, making it one of the longest dividend-growth records among US technology companies.
How do Software, Consulting, and Infrastructure contribute to IBM's revenue mix?
In FY2025, Software contributed $29.96 billion (about 44% of revenue), Consulting $21.06 billion (about 31%), Infrastructure $15.72 billion (about 23%), and Financing $0.74 billion (about 1%).
What was the financial impact of spinning off Kyndryl in November 2021?
In November 2021, IBM completed the tax-free spin-off of its managed infrastructure services business into Kyndryl ($19B revenue). This removed low-margin, capital-intensive IT maintenance contracts, instantly lifting IBM's corporate revenue growth rate and gross margins.
How much capital does IBM invest in Research & Development (R&D) annually?
IBM spends several billion dollars a year on research, development, and engineering, funding IBM Research work in AI models, semiconductors, hybrid cloud, and quantum computing. The exact figure is reported each year in its Form 10-K.
What is IBM's debt profile and leverage following major acquisitions?
IBM took on significant debt to buy Red Hat in 2019 and has since paid much of it down while funding HashiCorp and Confluent largely from cash. It keeps an investment-grade credit rating, supported by $14.7 billion of FY2025 free cash flow.
What is the size of IBM's generative AI book of business?
IBM said its generative AI book of business, covering software and consulting, had passed $12.5 billion since inception as of its 2025 annual report.
Is IBM a profitable company?
Yes, but they struggled for a decade. From 2012 to 2020, IBM suffered massive, consecutive quarters of revenue decline as cloud computing (AWS) cannibalized their legacy hardware. To save profitability, CEO Arvind Krishna executed a massive, brilliant spin-off in 2021, dumping IBM's low-margin managed infrastructure business into a new company called Kyndryl, allowing IBM to focus on high-margin software.
Cite or embed this data
Using these figures? Please credit CorpDigest with a link.
CorpDigest. "IBM Revenue & Financials." CorpDigest, https://corpdigest.com/company/ibm/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>IBM reported $67.5B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/ibm/financials" target="_blank" rel="noopener">CorpDigest — IBM financials</a></div>Related Financial Audits
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