IBM International Business Machines margins

Relative Growth: Rel. Growth: 90

Relative Strength: Rel. Strength: 32

Relative Valuation: Rel. Valuation: 67

Relative Profitability: Rel. Profitability: 92

Gross margin

58.1%

Operating margin

17.9%

EBITDA margin

25.5%

Net margin

15.5%

The International Business Machines shows a gross margin of 58.1%, an operating margin of 17.9%, an EBITDA margin of 25.5%, and a net margin of 15.5%. All reported margins improved year over year, led by net margin with an increase of 6.4 percentage points.

IBM margin history

Gross, operating, EBITDA and net margin trends

Over the last 3 years, International Business Machines's margins averaged 56.87% gross, 15.62% operating, 22.96% EBITDA, and 12.22% net. All four current margins are above their three-year averages.

IBM margin expansion

Year-over-year margin changes in percentage points

The biggest expansion was in net margin, which rose by 6.4 percentage points. The other available margins also improved.

Gross margin expansion

0.5pp

Operating margin expansion

5.3pp

EBITDA margin expansion

5.4pp

Net margin expansion

6.4pp

IBM Gross margin

Over the last 3 years, the average gross margin for International Business Machines was 56.87%. The latest gross margin for International Business Machines is 58.1%, 1.2 percentage points above its three-year average. International Business Machines's gross margin ranged from a low of 55% in Sep 2023 to a high of 58.4% in Mar 2026.

IBM Operating margin

International Business Machines's operating margin averaged 15.62% across the past 3 years. The latest operating margin for International Business Machines is 17.9%, 2.3 percentage points above its three-year average. Over the last 3 years, International Business Machines's operating margin peaked at 18.2% in Mar 2026 and reached a low of 12% in Dec 2024.

IBM EBITDA margin

Over the last 3 years, International Business Machines's EBITDA margin averaged 22.96%. At present, International Business Machines's current EBITDA margin is 25.5%, which is 2.5 percentage points above its three-year average. During this period, EBITDA margin reached a high of 25.6% in Mar 2026 and a low of 19.4% in Dec 2024.

IBM Net margin

In the last 3 years, International Business Machines had an average net margin of 12.22%. Compared with its three-year average, International Business Machines's current net margin is 15.5% and is 3.3 percentage points above its three-year average. Looking back over the last 3 years, International Business Machines's net margin reached 15.7% at its highest point in Dec 2025 and 8.7% at its lowest in Mar 2025.

IBM margin group comparison

Margins compared with peer-group, industry and sector averages

With a gross margin of 58.1%, IBM ranks higher than the Technology sector, the industry and its peers average. In comparison with the Technology sector average of 51.9%, International Business Machines's gross margin is 12% higher.

IBM margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is International Business Machines's gross margin?

For the period ending Jun 30, 2026, IBM recorded a gross margin of 58.1%.

What is International Business Machines's operating margin?

The current operating margin for IBM is 17.9% as of Jun 30, 2026.

What is International Business Machines's EBITDA margin?

For the period ending Jun 30, 2026, IBM recorded an EBITDA margin of 25.5%.

What is International Business Machines's net margin?

The current net margin for IBM is 15.5% as of Jun 30, 2026.

What are the average margins of IBM?

Across the last 3 years, IBM averaged 56.9% gross, 15.6% operating, 23.0% EBITDA, and 12.2% net.

What are the highest historical margins of IBM?

In the last 5 years, the highest margins reported by IBM were 65.3% gross in Sep 2021, 18.2% operating in Mar 2026, 28% EBITDA in Sep 2021, and 15.7% net in Dec 2025.

What are the lowest historical margins of IBM?

Across the 5-year period, IBM posted its lowest margins at 53.8% gross in Sep 2022, 3.2% operating in Sep 2022, 11.3% EBITDA in Sep 2022, and 2.1% net in Sep 2022.