IBM vs Roche: Revenue, Profit and Business Model
IBM reported $67.5B of revenue in FY2025 and $10.6B of net income. Roche reported ~$76B of revenue in FY2025 and ~$15.5B of net income.
Latest financial snapshot
Financial summary
IBM
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.
Roche
Roche's 2025 group sales were ~$73.8 billion (CHF 61.5 billion), up 7% at constant exchange rates but only 2% in Swiss francs. Core operating profit grew 13% CER to ~$26.2 billion (CHF 21.8 billion), core EPS was CHF 19.46, and IFRS net income jumped to ~$16.6 billion (CHF 13.8 billion) from ~$11 billion (CHF 9.2 billion) in 2024, when impairments depressed profit. In H1 2026 core operating margin widened 1.7 points to 39.0%, while a strong franc pushed reported sales down 2%. The board raised the dividend to CHF 9.80, the 39th consecutive increase, and guided for mid-single-digit CER sales growth and high-single-digit core EPS growth in 2026.
Revenue and profit by year
IBM
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $67.5B | $10.6B | 15.7% | +7.6% | Source |
| FY2024 | $62.8B | $6B | 9.6% | +1.4% | Source |
| FY2023 | $61.9B | $7.5B | 12.1% | +2.2% | Source |
| FY2022 | $60.5B | $1.6B | 2.7% | +5.5% | Source |
| FY2021 | $57.4B | $5.7B | 10.0% | +3.9% | Source |
| FY2020 | $55.2B | $5.6B | 10.1% | -4.4% | Source |
| FY2019 | $57.7B | $9.4B | 16.3% | -27.5% | Source |
| FY2018 | $79.6B | $8.7B | 11.0% | +0.6% | Source |
| FY2017 | $79.1B | $5.8B | 7.3% | -1.0% | Source |
| FY2016 | $79.9B | $11.9B | 14.9% | — | Source |
Where the revenue comes from
IBM
- Software~44%
Red Hat, automation, data and AI, transaction processing, security, and related software services.
- Consulting~31%
Technology consulting, business transformation, hybrid cloud implementation, and AI-enabled workflows.
- Infrastructure~23%
IBM Z, distributed infrastructure, storage, infrastructure software, maintenance, and related services.
- Financing~1%
Client financing and used equipment sales supporting enterprise technology deployments.
Roche
- Prescription medicines
- Biologics and oncology drugs
- Diagnostic instruments
- Diagnostic reagents and tests
- Sequencing and molecular diagnostics
- Clinical data and companion diagnostics
Business model and strategy
IBM
How it makes money
IBM makes money from four segments. Software ($29.96 billion in FY2025, about 44% of revenue) includes Red Hat Enterprise Linux and OpenShift, HashiCorp Terraform and Vault, Confluent data streaming (from March 2026), watsonx AI, automation, security, and mainframe transaction-processing software, sold mostly as subscriptions and recurring licenses.
Growth strategy
IBM does not try to beat AWS, Microsoft Azure, or Google Cloud at selling public cloud capacity. It sells the software layer that runs across all of them and across on-premises data centers.
Competitive advantage
IBM's main advantage is how deeply it is built into the core systems of large regulated organizations. Banks, card networks, insurers, and governments run high-volume transaction processing on IBM Z, and moving those workloads is slow, risky, and expensive.
Roche
How it makes money
Roche makes money in two ways. The Pharmaceuticals Division (~$57.2 billion (CHF 47.7 billion) in 2025) sells patented medicines, mostly biologics, in oncology, neuroscience, immunology, ophthalmology and haemophilia; top growth drivers in 2025 were Phesgo, Xolair, Ocrevus, Hemlibra and Vabysmo.
Growth strategy
Roche is building a cardiovascular, renal and metabolic franchise through acquisitions of Carmot Therapeutics (2023, $2.7 billion upfront) and 89bio (2025, up to about $3.5 billion), the petrelintide partnership with Zealand Pharma, and a new Innovation Center in Boston opened in September 2026.
Competitive advantage
Roche's edge comes from three things: scale in both drugs and diagnostics, a long-horizon ownership structure, and a federated R&D model. The Hoffmann and Oeri family pool holds the majority of voting shares, which shields management from takeover pressure.
Questions about IBM vs Roche
Which company has higher revenue — International Business Machines Corporation or F. Hoffmann-La Roche AG?
International Business Machines Corporation reported $67.5B (FY2025), while F. Hoffmann-La Roche AG reported ~$76B (FY2025). By last reported revenue, F. Hoffmann-La Roche AG is the larger business, with International Business Machines Corporation reporting a smaller revenue base.
What is the market cap of International Business Machines Corporation vs F. Hoffmann-La Roche AG?
International Business Machines Corporation's market capitalisation stands at $216.3B, while F. Hoffmann-La Roche AG's is $355.0B. F. Hoffmann-La Roche AG carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to International Business Machines Corporation.
Which is more financially efficient — International Business Machines Corporation or F. Hoffmann-La Roche AG?
International Business Machines Corporation generates $256k / employee in revenue per employee, while F. Hoffmann-La Roche AG generates $674k / employee. F. Hoffmann-La Roche AG shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do International Business Machines Corporation and F. Hoffmann-La Roche AG make money?
International Business Machines Corporation and F. Hoffmann-La Roche AG generate revenue in fundamentally different ways. International Business Machines Corporation: IBM makes money from four segments. F. Hoffmann-La Roche AG: Roche makes money in two ways.
Which company is valued higher relative to revenue — International Business Machines Corporation or F. Hoffmann-La Roche AG?
On a price-to-sales (P/S) basis, International Business Machines Corporation trades at 3.2x P/S and F. Hoffmann-La Roche AG at 4.7x P/S. F. Hoffmann-La Roche AG commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to International Business Machines Corporation. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is International Business Machines Corporation bigger than F. Hoffmann-La Roche AG?
By last reported revenue, F. Hoffmann-La Roche AG (~$76B (FY2025)) is the larger company compared to International Business Machines Corporation ($67.5B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the IBM vs Roche overview