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International Business Machines (IBM) FY2025 results: revenue $67.5 billion, up 7.6% on the year

International Business Machines Corp. (IBM) reported revenue of $67.5 billion for fiscal 2025, the year ended 31 December 2025, up 7.6% on the year before. Net income was $10.6 billion, up 75.9%, and diluted earnings per share $11.17. The figures are the company's own, from the 10-K it filed with the SEC on 24 February 2026.

Revenue
$67.5 billion
+7.6% on the year
FY2018FY2025
Operating margin
n/a
FY2018FY2025
Net income
$10.6 billion
+75.9% on the year
FY2018FY2025
Diluted EPS
$11.17
+73.7% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

From this 10-K

IBM sells enterprise software, consulting services and computing infrastructure, and finances clients' purchases of them. The company was incorporated in New York on 16 June 1911 as the Computing-Tabulating-Recording Co., a consolidation of the Computing Scale Co. of America, the Tabulating Machine Co. and The International Time Recording Co. of New York, and took its present name in 1924. Its stated focus today is hybrid cloud and artificial intelligence: supporting clients' digital transformations, reworking critical workflows at scale and modernising applications. It draws on software, consulting, long-standing positions in mission-critical infrastructure and its own research organisation.

International Business Machines Corp., the 10-K for 2025

IBM sells enterprise software, consulting services and computing infrastructure, and finances clients' purchases of them. The company was incorporated in New York on 16 June 1911 as the Computing-Tabulating-Recording Co., a consolidation of the Computing Scale Co. of America, the Tabulating Machine Co. and The International Time Recording Co. of New York, and took its present name in 1924. Its stated focus today is hybrid cloud and artificial intelligence: supporting clients' digital transformations, reworking critical workflows at scale and modernising applications. It draws on software, consulting, long-standing positions in mission-critical infrastructure and its own research organisation.

Software

Hybrid cloud and AI platforms sold to enterprises to run transformations across their applications, data and environments. The filing names Alphabet, Amazon, BMC, Broadcom, Microsoft, Oracle, Salesforce, SAP and Splunk as the principal competitors in this segment, alongside smaller specialists in particular regions or product areas.

Consulting

Strategy, experience design, technology and operations expertise delivered by industry domain. The market spans business consulting, systems integration, application development and management, and business process outsourcing. Competitors named are Accenture, Capgemini, India-based service providers, management consulting firms, the consulting practices of public accounting firms, engineering service providers and niche specialists. The company describes its position here as supported by industry expertise, hybrid cloud, data and AI capability, and the use of its own technology and ecosystem partners.

Infrastructure

On-premises and cloud-based server and storage systems, with a portfolio of lifecycle services for deploying hybrid cloud infrastructure. Investment is directed at security, scalability and reliability for mission-critical and AI workloads. Principal competitors named are Dell Technologies, Hewlett-Packard Enterprise, Intel, NetApp and Pure Storage, together with original device manufacturers whose systems are re-branded by others, and cloud service providers, which the filing notes compete with traditional providers and also open another route to market for server and storage systems.

Financing

Client and commercial financing that lets IBM clients acquire hardware, software and services. The filing points to the management of credit and residual value risk as the source of advantage here, and lists the competitive factors as interest rates charged, information technology product experience, client service, contract flexibility, ease of doing business, global capabilities and residual values. Competition comes mainly from non-captive financing entities and financial institutions.

Partners and competition

The company partners with hyperscalers, service providers, global system integrators and software and hardware vendors, naming Adobe, Amazon Web Services, Microsoft, Oracle, Palo Alto Networks, Salesforce, Samsung Electronics and SAP among its strategic partners, and it notes that a partner in one area may be a competitor in another. It describes hundreds of competitors worldwide across its segments, and new ones appearing as it pursues its hybrid cloud and AI strategy. Its stated methods of competition are technology, performance, price, quality, brand, breadth of capabilities, talent, client relationships, the ability to deliver business value, and service and support. Quantum computing is named as the next set of business opportunities it is preparing for.

From IBM's annual report on Form 10-K for the year ended 31 December 2025. Much of the business description, including the segment descriptions, human capital and strategy, is incorporated into that filing by reference from the company's annual report to stockholders and is not reproduced in it. The filing

Written from the 10-K filed 24 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue67,53562,75361,860+7.6%
Cost of revenue28,23927,20127,560+3.8%
Gross profit39,29735,55134,300+10.5%
Gross margin58.2%56.7%55.4%
Research and development8,3167,4796,775+11.2%
Selling, general and administrative20,12319,68819,003+2.2%
Interest expense1,9351,7121,607+13.0%
Pre-tax income10,3285,7978,690+78.2%
Income tax-242-2181,176
Effective tax rate-2.3%-3.8%13.5%
Net income10,5936,0237,502+75.9%
Net margin15.7%9.6%12.1%
Diluted EPS$11.17$6.43$8.14+73.7%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow13,19313,44513,931-1.9%
Capital expenditure1,0911,0481,245+4.1%
Free cash flow12,10212,39712,686-2.4%
Free cash flow margin17.9%19.8%20.5%
Cash from investing-10,302-4,937-7,070
Cash from financing-3,829-7,079-1,769
Depreciation and amortisation5,0214,6674,396+7.6%
Share-based compensation1,7151,3111,133+30.8%
Dividends paid6,2556,1476,040+1.8%
Dividend per share$6.71$6.67$6.63+0.6%
Diluted shares, weighted949m937m922m+1.2%
Shares outstanding at period end937m926m915m+1.2%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity32,64827,30722,533+19.6%
Non-controlling interest93.086.080.0+8.1%
Debt61,26054,97356,547+11.4%
Operating lease liabilities2,5472,6552,568-4.1%
Finance lease liabilities874803379+8.8%
Other liabilities54,45851,35153,134+6.1%
Total liabilities and equity151,880137,175135,241+10.7%
Goodwill67,71760,70660,178+11.5%
Intangible assets11,39110,66011,036+6.9%
Cash and equivalents13,58713,94713,068-2.6%
Receivables8,1126,8047,214+19.2%
Inventory1,2201,2891,161-5.4%
Other assets49,85343,76942,584+13.9%
Total assets151,880137,175135,241+10.7%

10-K for the year ended 31 December 2025, filed 24 February 2026: the filing.