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International Business Machines (IBM) Q4 2025 earnings results (fourth quarter 2025)
10-K filed Feb 24, 2026
International Business Machines (IBM) reported revenue of $19.7B for the fourth quarter 2025 (Q4 2025), +12% from a year earlier and +21% from the quarter before. Operating margin was 21.2%, net earnings $5.6B (28.4% of revenue).
International Business Machines, Q4 2025: revenue $19.7B (+12% year over year), operating margin 21.2%, net earnings $5.6B, operating cash flow $4.0B. The chart follows the revenue to costs, profit and cash.
| Q4 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $19.7B | +21% | +12% |
| Gross profit | $11.9B | +27% | +14% |
| Operating profit | $4.2B | +71% | +26% |
| Net earnings | $5.6B | +221% | +92% |
| Operating cash flow | $4.0B | +31% | -7% |
| Free cash flow | $3.7B | +29% | -9% |
What changed
Revenue was $19.7B in Q4 2025, up 12% year over year and up 21% from the previous quarter. Sales was the largest line at 58% of revenue.
Gross margin was 60.6%, up 1.1 points from a year earlier. Operating profit was $4.2B, a 21.2% margin (up 2.4 points year over year). Of the extra revenue versus a year earlier, 41% reached operating profit, above the 19% margin then. Operating expenses grew 9% against revenue growth of 12%. The fastest-growing cost line was SG&A (+12%). Net earnings were $5.6B, up 92% year over year. The effective tax rate was -34.5%.
Operating cash flow was $4.0B (down 7% year over year), 72% of net earnings. Non-cash charges added back $1.3B of depreciation and amortization and $0.43B of share-based compensation. Working capital and other items used $3.3B. Capital expenditures of $0.38B left free cash flow of $3.7B.
Questions
What was International Business Machines' revenue in the fourth quarter 2025?
International Business Machines (IBM) reported revenue of $19.7B for the fourth quarter 2025 (Q4 2025), +12% from a year earlier and +21% from the quarter before.
Was International Business Machines profitable in the fourth quarter 2025?
Operating profit was $4.2B (21.2% of revenue) and net earnings $5.6B.