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Company file · IBM

IBM

IBM's net income rose in 2025 as software and infrastructure revenue grew

Total revenue rose 7.6% to $67.5B, and net income rose 75.9% to $10.6B. Software was 44% of segment revenue.

Prepared from SEC filings · Latest annual report: 10-K for FY2025 (filed Feb 24, 2026) · Latest quarter: 10-Q for the quarter ended Sep 30, 2026 (filed Oct 22, 2026) · Data pulled Oct 25, 2026

Key facts

IBM (NYSE: IBM) reported total revenue of $67.5B for fiscal 2025, the year ended Dec 31, 2025, up 7.6% from fiscal 2024. Net income was $10.6B, up 75.9%. In its latest 10-Q, for the quarter ended Sep 30, 2026, revenue was $17.1B, up 4.7% from the same quarter a year earlier, and net income was $2.2B. The largest piece by segment was Software, at 44% of fiscal 2025 total revenue. Sources: 10-K for fiscal 2025 (filed Feb 24, 2026) and 10-Q for the quarter ended Sep 30, 2026 (filed Oct 22, 2026).

Revenue$67.5BFY2025 · +7.6% vs FY2024
Net income$10.6BFY2025 · +75.9% vs FY2024
Operating cash flow$13.2BFY2025 · −1.9% vs FY2024
Cash & equivalents$9.2Bat Sep 30, 2026 · −32.0% vs FY2025 end
Total debt$63.8Bat Sep 30, 2026 · +4.2% vs FY2025 end
Diluted shares949MFY2025 avg · +1.2% vs FY2024
Total revenue and net income, three fiscal yearsBy fiscal year, $bn
Total revenueNet income
Total revenue and net income by fiscal yearTotal revenue FY2023: $61.9B61.9Net income FY2023: $7.5B7.5FY2023Total revenue FY2024: $62.8B62.8Net income FY2024: $6.0B6.0FY2024Total revenue FY2025: $67.5B67.5Net income FY2025: $10.6B10.6FY2025

Source: 10-K FY2025, filed Feb 24, 2026

Quarterly total revenue: fiscal 2026 vs a year earlierFiscal Q1–Q3, $bn (each quarter from that quarter's 10-Q)
FY2025FY2026
Quarterly total revenue, fiscal 2026 vs 2025FY2025 Q1: $14.5B14.5FY2026 Q1: $15.9B15.9Q1FY2025 Q2: $17.0B17.0FY2026 Q2: $17.2B17.2Q2FY2025 Q3: $16.3B16.3FY2026 Q3: $17.1B17.1Q3

Source: 10-Q filed Apr 23, 2026 · 10-Q filed Jul 23, 2026 · 10-Q filed Oct 22, 2026

How it makes money

FY2025 total by categorySoftware: $30.0B (44%)Consulting: $21.1B (31%)Infrastructure: $15.7B (23%)Financing: $737M (1%)$67.5BFY2025 total

By segment, FY2025

  • LineAmountSharevs FY2024
  • Software$30.0B44%+10.6%
  • Consulting$21.1B31%+1.8%
  • Infrastructure$15.7B23%+12.1%
  • Financing$737M1%+3.4%

Source: 10-K FY2025, XBRL breakdown

Software brought in $30.0B in 2025, 44% of segment revenue, up from 41% in 2023. Consulting was 31% and Infrastructure 23%. The Americas were 49% of revenue.

By segment: three-year mixShare of the total each fiscal year
SoftwareConsultingInfrastructureFinancing

Source: 10-K FY2025

What changed last quarter

How the quarter compared with a year earlier

Comparing Q3 2026 (Jul to Sep 2026) compared with Q3 2025 (Jul to Sep 2025)

Each pair of bars shows the dollar amount for both quarters. Longer bar, more money. Bars in a group share one scale.

Q3 2026Q3 2025

Company

Revenue
$17.1B Q3 2026
$16.3B Q3 2025
4.7% increase
Net income
$2.2B Q3 2026
$1.7B Q3 2025
25.6% increase

Source: IBM 10-Q for the quarter ended Sep 30, 2026, filed Oct 22, 2026

By segment

Software
$7.8B Q3 2026
$7.2B Q3 2025
8.3% increase
Consulting
$5.3B Q3 2026
$5.3B Q3 2025
0.2% increase
Infrastructure
$3.7B Q3 2026
$3.6B Q3 2025
4.2% increase
Financing
$192M Q3 2026
$200M Q3 2025
4.0% decrease

Source: IBM 10-Q for the quarter ended Sep 30, 2026, filed Oct 22, 2026

  • Cash & equivalents $9.2B at Sep 30, 2026, vs $13.6B at FY2025 end.
  • Total debt $63.8B at Sep 30, 2026, vs $61.3B at FY2025 end.
  • Operating cash flow, first 9 months of fiscal 2026: $11.8B vs $9.2B a year earlier.

The bull case and the bear case

The bull case

  • Net income rose 75.9% in 2025 to $10.6B, on revenue up 7.6%. 10-K, FY2025
  • Software revenue grew 10.6% in 2025 to $30.0B, and Infrastructure grew 12.1%. 10-K, FY2025
  • Revenue in the quarter ended Sep 30, 2026 was $17.1B, up 4.7% on a year earlier, and net income rose 25.6% to $2.2B. 10-Q, quarter ended Sep 30, 2026

The bear case

  • Consulting revenue grew just 1.8% in 2025. 10-K, FY2025
  • Total debt rose 11.4% in 2025 to $61.3B. 10-K, FY2025
  • Operating cash flow dipped 1.9% in 2025 to $13.2B. 10-K, FY2025
  • The 10-K lists the economy and client spending, innovation, reputation and acquisitions among its risks. 10-K, Item 1A

What optimists and skeptics tend to point to, each tied to a filing. Ticker Sage doesn't pick a side, and neither list is a reason to buy or sell.

What the company does

IBM sells software, IT consulting and infrastructure such as mainframes, servers and storage, and offers financing for its products.

It reports four segments. Software includes hybrid cloud software such as Red Hat, automation, data and AI, and transaction processing software. Consulting covers business transformation, technology consulting and application operations. Infrastructure covers mainframes, servers, storage and related support. Financing provides loans and leases for IBM products.

Its customers are mainly large companies and governments around the world. Its fiscal year is the calendar year.

Source: 10-K, Item 1 Business

Main risks the company lists

Our plain-English paraphrase of the risk factors in IBM's latest 10-K. Read the original for the full list.

  1. Client spendingIT budgets tighten in a weaker economy, which affects sales.
  2. InnovationIt must keep up with fast changes in cloud and AI to stay competitive.
  3. ReputationDamage to its brand or client trust could hurt sales.
  4. AcquisitionsIt buys companies to grow, which brings integration risk.
  5. Cyber and dataCyberattacks and data breaches could harm clients and IBM.
  6. InternationalMost revenue comes from outside the US, exposing it to currency and political risk.
  7. FinancingIt carries significant debt, partly to fund client financing.

Source: 10-K, Item 1A Risk Factors (the full list, in the company's words)

Three years of key numbers

Every number links to its filing; hover for the XBRL tag. A dash means the number isn't cleanly available, and we don't estimate it.

US$FY2023FY2024FY2025
Total revenue$61.9B$62.8B$67.5B
Net income$7.5B$6.0B$10.6B
Operating cash flow$13.9B$13.4B$13.2B
Cash & equivalents (year end)$13.1B$13.9B$13.6B
Total debt (year end)$56.5B$55.0B$61.3B
Diluted shares922M937M949M
  • Total revenue: Software, consulting, infrastructure (servers, mainframes and storage) and financing.
  • Net income: Profit after all costs and taxes.
  • Operating cash flow: Cash the business brought in from its day-to-day operations during the year (cash flow statement).
  • Cash & equivalents: Cash and short-term investments that count as cash equivalents on the balance sheet. Excludes longer-dated marketable securities.
  • Total debt: Short-term debt (including current maturities of long-term debt) plus long-term debt, at carrying value.
  • Diluted shares: Weighted average shares outstanding for the year, including the effect of options and stock awards.

About these numbers

  • Segment figures are revenue as reported for each segment, before a small amount of other revenue and adjustments, so they don't add up exactly to total revenue.
  • IBM files its financial statements in the annual report inside its 10-K, so annual figures link to that document.

Recent filings

FormFiledPeriod
10-QOct 22, 2026Sep 30, 2026
10-QJul 23, 2026Jun 30, 2026
10-QApr 23, 2026Mar 31, 2026
DEF 14AMar 10, 2026Mar 9, 2026
10-KFeb 24, 2026Dec 31, 2025

Latest filings

  1. Oct 214:19 PM ET

    8-K

    IBM files an 8-K on quarterly results

    IBM filed a Form 8-K on Oct 21, 2026 at 4:19 PM ET under Item 2.02 (Results of Operations and Financial Condition).

  2. Oct 14:31 PM ET

    Form 4

    IBM director Ramon Laguarta reports an award of 415 Promised Fee shares

    The filing reports 415 Promised Fee shares in a grant or award (code A).

  3. Oct 14:30 PM ET

    Form 4

    IBM director Alex Gorsky reports an award of 489 Promised Fee shares

    The filing reports 489 Promised Fee shares in a grant or award (code A).

  4. Oct 14:29 PM ET

    Form 4

    IBM director Michelle J. Howard reports an award of 291 Promised Fee shares

    The filing reports 291 Promised Fee shares in a grant or award (code A).

  5. Oct 14:28 PM ET

    Form 4

    IBM director Andrew N. Liveris reports an award of 444 Promised Fee shares

    The filing reports 444 Promised Fee shares in a grant or award (code A).

All IBM filings notes →

Common questions about IBM

How does IBM make money?

IBM's total revenue was $67.5B in fiscal 2025. Software brought in $30.0B in 2025, 44% of segment revenue, up from 41% in 2023. Consulting was 31% and Infrastructure 23%. The Americas were 49% of revenue. Source: 10-K for fiscal 2025, filed Feb 24, 2026.

What was IBM's revenue in fiscal 2025?

$67.5B of total revenue for the fiscal year ended Dec 31, 2025, up 7.6% from $62.8B in fiscal 2024. Fiscal 2023 was $61.9B. Source: 10-K for fiscal 2025, filed Feb 24, 2026.

Is IBM profitable?

IBM reported net income of $10.6B for fiscal 2025, up 75.9% from $6.0B in fiscal 2024. That is a profit under US accounting rules (GAAP). In the quarter ended Sep 30, 2026, net income was $2.2B. The page's About these numbers section explains what is included. Source: 10-K for fiscal 2025, filed Feb 24, 2026.

What did IBM report in its latest quarterly filing?

Revenue was $17.1B in the quarter ended Sep 30, 2026, up 4.7% from $16.3B a year earlier. Net income was $2.2B, up 25.6% from $1.7B. Source: 10-Q for the quarter ended Sep 30, 2026, filed Oct 22, 2026.

How much cash and debt does IBM have?

IBM had $9.2B in cash and cash equivalents and $63.8B of total debt on Sep 30, 2026. Total debt here is short-term debt (including current maturities of long-term debt) plus long-term debt, at carrying value. Source: 10-Q filed Oct 22, 2026.

What are the main risks IBM lists?

IBM's 10-K for fiscal 2025, filed Feb 24, 2026, lists its risk factors in Item 1A. We group them into 7 areas: Client spending; innovation; reputation; acquisitions; cyber and data; international; financing. The first: IT budgets tighten in a weaker economy, which affects sales. Source: 10-K, Item 1A Risk Factors.

Where do these IBM numbers come from?

From IBM's own SEC filings: the 10-K for fiscal 2025 (filed Feb 24, 2026) and the 10-Q for the quarter ended Sep 30, 2026 (filed Oct 22, 2026), read through the SEC's public XBRL data. Each number on this page links to its filing. Methodology explains how fiscal years and missing numbers are handled.

Disclosures

Editor holdings in IBM
The editor holds no position in IBM (IBM). As of Oct 25, 2026.
Trading rule
The editor does not buy or sell IBM from 3 days before to 3 days after this page is published or substantively updated.
Compensation
Nobody paid for this page. No affiliate links on this page.
Sources
The company's SEC filings, linked next to each number or, for charts, in the source line under them.
Last updated
Oct 25, 2026

General education, the same for every reader. Not a recommendation to buy, sell or hold IBM, and it doesn't consider your situation.

Compare with peers

CompanyFiscal yearRevenueRevenue growthNet income
IBMFY2025$67.5B+7.6%$10.6B
MicrosoftMSFTFY2026$331.8B+17.8%$133.7B
OracleORCLFY2026$67.4B+17.3%$17.1B
SalesforceCRMFY2026$41.5B+9.6%$7.5B

Each row is that company’s latest fiscal year from its own 10-K, using its own revenue and net income lines. Fiscal years end in different months, and line definitions differ (banks, insurers and oil companies count revenue differently), so this is a rough side-by-side, not a like-for-like comparison.

More company files

New to filings? Learn lists the first explainer topics. Methodology & Disclosures covers where every number comes from.