IBM
Since that time, IBM has focused on the intersection of business insight and technological innovation, and its operations and aims have been international in nature.
10-K, Feb 24, 2026
Source and method
In the company’s words: first descriptive sentence of 10-K Item 1, verbatim (extractive). Item 1 · Business · 10-K · 0000051143-26-000010 · filed Feb 24, 2026
Business
How does IBM make money?
Product is 51.4% of revenue.
Source and method
Revenue by revenue types, FY2024.
annual report FY2024 · 0000051143-25-000015 · shares derived = part / total revenue
Calculated: share = part revenue ÷ total revenue ($62.8B).
- Product: $32.2B · 51.4%
- Technology Service: $29.8B · 47.5%
- Financial Service: $709M · 1.1%
What is left of every $100?
Of every $100 in revenue, $16 is net income.
Source and method
Of every $100 of revenue, FY2025.
Calculated: amount ÷ revenue × 100.
- Revenue: $67.5B
- Gross profit: $39.3B
- Operating income: not reported (not reported for this fiscal year, nothing estimated)
- Net income: $10.6B
- Free cash flow: $12.1B
Where do customers sit?
49.4% of revenue is from Americas.
Source and method
Revenue by region, latest annual report.
10-K · 0000051143-26-000010 · XBRL revenue by region · one level, shares add up to 100.0% · derived
Calculated: share = region revenue ÷ total revenue.
In the company’s words ›
“This was signaled over 100 years ago, in 1924, when C-T-R changed its name to International Business Machines Corporation.”
“And it continues today—we create sustained value for clients by helping them leverage the power of hybrid cloud and artificial intelligence (AI).”
“Our hybrid cloud platform and AI technology support clients’ digital transformations and helps them reimagine critical workflows, at scale, and modernize applications to increase agility, drive innovation and create operational efficiencies.”
Item 1 · Business · 10-K · 0000051143-26-000010 · filed Feb 24, 2026
Where did the growth actually come from?
Revenue fell; Technology Service led the drop.
Source & method
- Counted
- Segment revenue as filed, first and last fiscal year of the range.
- Formulas
- Change = segment revenue (to) − segment revenue (from); share of growth = change / total revenue change (calculated). Not allocated = total revenue − sum of reported segments (calculated, never filled in).
- Guards
- Segment break: if the company redrew its segments inside the range, no share of growth is claimed. No segment break reported for this company. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Thesis
Why do people invest?
1 reason in the company’s own words.
Position (in the company’s words)
“The depth, breadth, and innovation of our software offerings, coupled with our global reach, deep industry expertise and research capabilities help differentiate our offerings from our competitors.”
Item 1 · Business · 10-K · 0000051143-26-000010 · filed Feb 24, 2026
Source and method
Verbatim · selection. Sentences selected by rules from the 10-K and checked word for word against it; no AI summary. Not investment advice, not a recommendation, no forecast.
1 of 1 points met the selection rules (score, subject = the metric, quoted number within ±10% of the stored value).
KPIs
How fast is revenue growing?
Revenue grew 7.6% to $67.5B.
Revenue grew 1.1% YoY to $17.2B.
Source & method
- Counted
- Total revenue, as filed in 10-K / 20-F / 10-Q XBRL.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Did the growth reach the shareholder?
Per share, revenue grew 7.3%.
Source & method
- Counted
- Revenue and weighted-average diluted shares, as filed, first and last fiscal year of the range.
- Formulas
- Revenue per diluted share = revenue / diluted shares; growth = (to / from) − 1. All three changes are calculated.
- Guards
- IPO: if the start year ended more than 365 days before the first SEC filing and diluted shares then rose ≥25%, the range is hidden by default (Options → Include IPO-distorted periods). Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How profitable is it?
58.2% gross margin, up from 56.7%.
Net income grew 76% to $10.6B.
R&D grew 11% to $8.3B.
SG&A grew 2.2% to $20.1B.
EPS diluted grew 74% to $11.17.
57.7% gross margin, down from 58.8%.
Net income fell 1.3% YoY to $2.2B.
R&D grew 10% YoY to $2.3B.
SG&A fell 0.9% YoY to $5.0B.
EPS diluted fell 1.7% YoY to $2.27.
Source & method
- Counted
- Income statement items, as filed.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How much cash does it make, and where does it go?
Keeps $18 of every $100 as free cash.
Operating cash flow fell 1.9% to $13.2B.
Capex grew 4.1% to $1.1B.
Dividends grew 1.8% to $6.3B.
Stock-based compensation grew 31% to $1.7B.
Free cash flow grew 59% YoY to $2.4B.
Operating cash flow grew 53% YoY to $2.6B.
Capex grew 9.0% YoY to $229M.
Dividends grew 1.7% YoY to $1.6B.
Stock-based compensation grew 13% YoY to $498M.
Source & method
- Counted
- Cash flow statement items, as filed; free cash flow = operating cash flow − capex (calculated).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How strong is the balance sheet?
$13.6B cash vs $67.7B debt.
Total debt grew 13% to $67.7B.
Interest expense grew 13% to $1.9B.
Total assets grew 11% to $151.9B.
Equity grew 20% to $32.6B.
Cash fell 40% YoY to $7.2B.
Total debt fell 7.3% YoY to $67.8B.
Interest expense fell 4.7% YoY to $486M.
Total assets grew 2.4% YoY to $152.1B.
Equity grew 25% YoY to $34.5B.
Source & method
- Counted
- Balance sheet items at fiscal year end, as filed; total debt is derived from reported components (excl. operating leases).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Dependencies
Who does IBM depend on?
No customer above the disclosure threshold.
Customers, suppliers, stakes and mentions ›
Only what filings state. Anonymous customers stay anonymous.
Largest customers (IBM annual report)
No customer with a reported share of revenue (the 10-K names none above the disclosure threshold).
Suppliers named by IBM
No supplier among the covered companies is named in the filings.
IBM holds stakes in
No stake in a covered company found in SEC filings.
Others name IBM
6 competitor mentions (e.g. Datadog, Everpure, HPE, MongoDB) · 2 other mentions (e.g. Celestica, Palo Alto Networks) · 3 partner mentions (e.g. Cerebras, Everpure, MongoDB) in covered companies’ filings. Mentions, not confirmed relationships.
Risks
What could go wrong?
1 of 4 risk factors, one per theme.
Economic conditions
“Downturn in Economic Environment and Client Spending Budgets Could Impact the Company’s Business: If overall demand for IBM’s products and solutions decreases, whether due to general economic conditions, or a shift in client buying patterns, the company’s revenue and profit could be impacted.”
Item 1A · Risk Factors · 10-K · 0000051143-26-000010 · filed Feb 24, 2026
Source and method
Short verbatim quotes from the risk factors in Item 1A, one per theme (a partial selection). Full list: 10-K.
Who’s invested
Who owns more than 5%?
Vanguard Capital Management LLC holds 7.48%.
Vanguard Capital Management LLC7.48%
13G · as of Mar 31, 2026 · filed Apr 30, 2026
BlackRock Inc.8.3% (then)
13G/A · filed Jan 25, 2024 · older than 18 months, current position unknown
State Street Corp6.03% (then)
13G/A · as of Dec 31, 2023 · filed Jan 30, 2024 · older than 18 months, current position unknown
Source and method
Holders above 5% from Schedule 13G/13D, SEC filings only. “(then)”: reported in a filing older than 18 months; the current position is not known from SEC 13G/13D data.
2 filings reporting a stake below 5% (e.g. after selling) not listed.
13F holders and insider trades ›
Largest institutional holders, 13F, quarter ending Jun 30, 2026
BlackRock, Inc.12.5%
76.8M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Vanguard Capital Management LLC10.0%
61.4M shares · 13F filed Aug 13, 2026 · share of 13F-reported
State Street Corp9.1%
56.0M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Vanguard Portfolio Management LLC4.6%
28.3M shares · 13F filed Aug 13, 2026 · share of 13F-reported
Geode Capital Management, LLC3.8%
23.4M shares · 13F filed Aug 12, 2026 · share of 13F-reported
3,626 13F filers report positions. 13F covers managers with over $100M in US equities; it is not a full shareholder list, and shares are not a percentage of shares outstanding.
Insiders, last 12 months (Form 4, open market)
3 purchases · 1 sales · $5.8M sold
Grants, gifts and tax withholding counted separately · window Oct 13, 2025 – Oct 13, 2026
All metrics
All metrics · 33 SEC metrics, FY2016–FY2025
Income statement 9
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue | ||||||||||
| Discontinued operations | ||||||||||
| Gross profit | ||||||||||
| Income taxes | ||||||||||
| Interest expense | ||||||||||
| Net income | ||||||||||
| Research and development | ||||||||||
| Revenue | ||||||||||
| SG&A | ||||||||||
Balance sheet 10
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and equivalents | ||||||||||
| Current liabilities | ||||||||||
| Current portion of long-term debt | ||||||||||
| Equity | ||||||||||
| Equity incl. NCI | ||||||||||
| Long-term debt | ||||||||||
| Short-term debt (balance sheet line) | not reported | not reported | not reported | not reported | not reported | not reported | not reported | |||
| Total assets | ||||||||||
| Total debt calc. | ||||||||||
| Total liabilities & equity | ||||||||||
Cash flow 7
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Buybacks | not reported | not reported | not reported | not reported | not reported | not reported | ||||
| Capex | ||||||||||
| Dividends | ||||||||||
| Free cash flow calc. | ||||||||||
| Interest paid | ||||||||||
| Operating cash flow | ||||||||||
| Stock-based compensation | ||||||||||
Per share & shares 4
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| EPS basic | ||||||||||
| EPS diluted | ||||||||||
| Wtd. shares basic | ||||||||||
| Wtd. shares diluted | ||||||||||
Other 3
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Pretax income | ||||||||||
| Short-term borrowings / commercial paper | not reported | not reported | ||||||||
| Total liabilities | ||||||||||
Method
extractive: verbatim sentences selected by rules from Item 1, 1A and 7; no AI summary; every sentence matched verbatim against the filing text. Numbers: Hollsteen SEC dataset. Every value opens its SEC source · version history of all values