Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

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Income Statement
Quarterly Data

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International Business Machines Corp., consolidated income statement (quarterly data)

US$ in millions

Microsoft Excel
3 months ended: Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Services
Sales
Financing
Revenue
Services
Sales
Financing
Cost
Gross profit
Selling, general and administrative
Research and development
Intellectual property and custom development income
Operating income
Other income and (expense)
Interest expense
Income (loss) from continuing operations before income taxes
(Provision for) benefit from income taxes
Income (loss) from continuing operations
Income (loss) from discontinued operations, net of tax
Net income (loss)

Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).


The financial performance presented exhibits considerable fluctuation over the observed period. Revenue demonstrates an overall upward trajectory, though not consistently. Gross profit generally follows revenue trends, indicating a relatively stable gross margin. However, operating income and net income display significant volatility, influenced by substantial swings in other income and expenses, and tax provisions.

Revenue Trends
Revenue increased from US$13,187 million in March 2021 to US$19,686 million in September 2023, before reaching US$11,478 million in December 2023 and peaking at US$19,686 million in September 2025. The largest single-quarter revenue occurred in December 2023 and September 2025. Revenue from Services remained relatively stable, fluctuating between approximately US$7,366 million and US$8,028 million. Sales revenue experienced more pronounced quarterly variations, with peaks in December 2021 and December 2023, and a decline in the first half of 2022. Financing revenue remained consistently the smallest contributor to overall revenue.
Profitability Analysis
Gross profit mirrored revenue trends, increasing from US$7,027 million in March 2021 to US$11,929 million in September 2025. Operating income experienced substantial volatility. A significant increase was observed in December 2021, followed by a sharp decline in September 2022, largely attributable to a substantial negative adjustment in 'Other income and (expense)'. Net income followed a similar pattern, with a peak in December 2023 and a significant loss in September 2022. The impact of discontinued operations, while present, was relatively minor compared to the fluctuations in continuing operations.
Cost Structure
Cost of revenue generally increased alongside revenue, remaining a significant portion of overall revenue. Selling, general, and administrative expenses remained relatively consistent throughout the period, averaging around US$4.7 billion per quarter. Research and development expenses exhibited a gradual increase over time, reaching approximately US$2.187 billion in September 2025. Intellectual property and custom development income provided a consistent, though smaller, offset to overall costs.
Key Expense Impacts
Interest expense remained relatively stable, averaging around US$400 million per quarter. However, 'Other income and (expense)' demonstrated extreme variability, significantly impacting operating income and net income. The large negative value in September 2022 (-US$5,755 million) particularly skewed the results for that quarter. The provision for income taxes also exhibited considerable fluctuation, shifting from a benefit to an expense and vice versa across different quarters.

In summary, the financial performance demonstrates revenue growth, but profitability is highly sensitive to fluctuations in 'Other income and (expense)' and tax provisions. While core revenue streams from Services show stability, Sales revenue experiences more volatility. Continued monitoring of these key areas is recommended to understand the underlying drivers of profitability and to manage financial risk.