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International Business Machines (IBM) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 24, 2025
International Business Machines (IBM) reported revenue of $17.0B for the second quarter 2025 (Q2 2025), +8% from a year earlier and +17% from the quarter before. Operating margin was 15.3%, net earnings $2.2B (12.9% of revenue).
International Business Machines, Q2 2025: revenue $17.0B (+8% year over year), operating margin 15.3%, net earnings $2.2B, operating cash flow $1.7B. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $17.0B | +17% | +8% |
| Gross profit | $10.0B | +24% | +11% |
| Operating profit | $2.6B | +124% | +17% |
| Net earnings | $2.2B | +108% | +20% |
| Operating cash flow | $1.7B | -61% | -18% |
| Free cash flow | $1.5B | -64% | -19% |
What changed
Revenue was $17.0B in Q2 2025, up 8% year over year and up 17% from the previous quarter. Sales was the largest line at 54% of revenue. Sales added $0.93B year over year (up 11%), 77% of the total change. Financing declined 2%.
Gross margin was 58.8%, up 2.0 points from a year earlier. Operating profit was $2.6B, a 15.3% margin (up 1.2 points year over year). Of the extra revenue versus a year earlier, 31% reached operating profit, above the 14% margin then. Operating expenses grew 10% against revenue growth of 8%. Net earnings were $2.2B, up 20% year over year. The effective tax rate was 15.6%.
Operating cash flow was $1.7B (down 18% year over year), 78% of net earnings. Non-cash charges added back $1.3B of depreciation and amortization and $0.44B of share-based compensation. Working capital and other items used $2.2B. Capital expenditures of $0.21B left free cash flow of $1.5B.
Questions
What was International Business Machines' revenue in the second quarter 2025?
International Business Machines (IBM) reported revenue of $17.0B for the second quarter 2025 (Q2 2025), +8% from a year earlier and +17% from the quarter before.
Was International Business Machines profitable in the second quarter 2025?
Operating profit was $2.6B (15.3% of revenue) and net earnings $2.2B.