IBM International Business Machines margins

Relative Growth: Rel. Growth: 82

Relative Strength: Rel. Strength: 63

Relative Valuation: Rel. Valuation: 61

Relative Profitability: Rel. Profitability: 88

Gross margin

58%

Operating margin

17.8%

EBITDA margin

25.4%

Net margin

16%

The International Business Machines shows a gross margin of 58%, an operating margin of 17.8%, an EBITDA margin of 25.4%, and a net margin of 16%. All reported margins improved year over year, led by net margin with an increase of 3.9 percentage points.

IBM margin history

Gross, operating, EBITDA and net margin trends

Over the last 3 years, International Business Machines's margins averaged 57.12% gross, 15.77% operating, 23.18% EBITDA, and 12.61% 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 3.9 percentage points. The other available margins also improved.

Gross margin expansion

0.2pp

Operating margin expansion

0.4pp

EBITDA margin expansion

0.6pp

Net margin expansion

3.9pp

IBM Gross margin

Over the last 3 years, the average gross margin for International Business Machines was 57.12%. The latest gross margin for International Business Machines is 58%, 0.9 percentage points above its three-year average. International Business Machines's gross margin ranged from a low of 55.4% in Dec 2023 to a high of 58.4% in Mar 2026.

IBM Operating margin

International Business Machines's operating margin averaged 15.77% across the past 3 years. The latest operating margin for International Business Machines is 17.8%, 2 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 23.18%. At present, International Business Machines's current EBITDA margin is 25.4%, which is 2.2 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 12.61%. Compared with its three-year average, International Business Machines's current net margin is 16% and is 3.4 percentage points above its three-year average. Looking back over the last 3 years, International Business Machines's net margin reached 16% at its highest point in Sep 2026 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%, IBM ranks higher than the Technology sector, the industry and its peers average. In comparison with the Technology sector average of 52.2%, International Business Machines's gross margin is 11% 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 Sep 30, 2026, IBM recorded a gross margin of 58%.

What is International Business Machines's operating margin?

The current operating margin for IBM is 17.8% as of Sep 30, 2026.

What is International Business Machines's EBITDA margin?

For the period ending Sep 30, 2026, IBM recorded an EBITDA margin of 25.4%.

What is International Business Machines's net margin?

The current net margin for IBM is 16% as of Sep 30, 2026.

What are the average margins of IBM?

Across the last 3 years, IBM averaged 57.1% gross, 15.8% operating, 23.2% EBITDA, and 12.6% net.

What are the highest historical margins of IBM?

In the last 5 years, the highest margins reported by IBM were 58.4% gross in Mar 2026, 18.2% operating in Mar 2026, 25.6% EBITDA in Mar 2026, and 16% net in Sep 2026.

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.