Net Profit Margin
since 2005
Calculation
International Business Machines Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to IBM1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 9.60% | = | 100 | × | 6,023) | ÷ | 62,753) |
| Dec 31, 2023 | 12.13% | = | 100 | × | 7,502) | ÷ | 61,860) |
| Dec 31, 2022 | 2.71% | = | 100 | × | 1,639) | ÷ | 60,530) |
| Dec 31, 2021 | 10.01% | = | 100 | × | 5,743) | ÷ | 57,350) |
| Dec 31, 2020 | 7.59% | = | 100 | × | 5,590) | ÷ | 73,620) |
| Dec 31, 2019 | 12.22% | = | 100 | × | 9,431) | ÷ | 77,147) |
| Dec 31, 2018 | 10.97% | = | 100 | × | 8,728) | ÷ | 79,591) |
| Dec 31, 2017 | 7.27% | = | 100 | × | 5,753) | ÷ | 79,139) |
| Dec 31, 2016 | 14.86% | = | 100 | × | 11,872) | ÷ | 79,919) |
| Dec 31, 2015 | 16.14% | = | 100 | × | 13,190) | ÷ | 81,741) |
| Dec 31, 2014 | 12.96% | = | 100 | × | 12,022) | ÷ | 92,793) |
| Dec 31, 2013 | 16.52% | = | 100 | × | 16,483) | ÷ | 99,751) |
| Dec 31, 2012 | 15.89% | = | 100 | × | 16,604) | ÷ | 104,507) |
| Dec 31, 2011 | 14.83% | = | 100 | × | 15,855) | ÷ | 106,916) |
| Dec 31, 2010 | 14.85% | = | 100 | × | 14,833) | ÷ | 99,870) |
| Dec 31, 2009 | 14.02% | = | 100 | × | 13,425) | ÷ | 95,758) |
| Dec 31, 2008 | 11.90% | = | 100 | × | 12,334) | ÷ | 103,630) |
| Dec 31, 2007 | 10.55% | = | 100 | × | 10,418) | ÷ | 98,786) |
| Dec 31, 2006 | 10.38% | = | 100 | × | 9,492) | ÷ | 91,424) |
| Dec 31, 2005 | 8.71% | = | 100 | × | 7,934) | ÷ | 91,134) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial data reveals several notable trends and fluctuations over the analyzed period. Revenue exhibited an overall declining trend from a peak near 106,916 million US dollars around 2011 to approximately 62,753 million US dollars by 2024. This indicates a reduction of revenue by over 40% over the span of these years. The decline appears to have been gradual with some fluctuations, notably a drop after 2010 and relative stability in the years following 2018.
Net income attributable saw variations reflecting shifts in both revenue and profitability. Starting from 7,934 million US dollars in 2005, net income increased steadily to reach a peak around 16,604 million US dollars by 2012, signaling strong profitability. After 2012, net income fluctuated significantly, with a notable decline to as low as 1,639 million US dollars in 2022, before partially recovering to 6,023 million US dollars in 2024. These fluctuations underscore challenges in sustaining profit levels in the later years.
The net profit margin demonstrates variability across the years as well. It improved from 8.71% in 2005 to a high of about 16.52% in 2013, reflecting enhanced efficiency or cost management despite some volatility. Margin declined sharply in 2017 to 7.27% but recovered somewhat to reach 12.22% by 2019. A significant dip occurred again in 2022 to 2.71%, followed by a rebound to 9.6% in 2024, indicating periods of variable profitability relative to revenue.
Overall, the data suggest a company facing challenges in maintaining revenue growth alongside volatile profitability. While the earlier years showed strong gains both in income and margin, later periods reflect inconsistent earnings performance and a downward pressure on revenue, which may imply strategic or market challenges affecting business operations.
- Revenue Trend
- Peaked around 2011 then declined over time, showing a decrease of over 40% by 2024.
- Net Income Trend
- Growth until 2012 followed by fluctuations and significant decreases around 2022, with partial recovery thereafter.
- Net Profit Margin
- Improved through mid-period, then exhibited volatility with sharp declines and recoveries, lowest around 2022.
- Overall Insight
- Revenue contraction and profit margin volatility indicate potential operational or market challenges impacting financial performance in recent years.
Comparison to Competitors
International Business Machines Corp., net profit margin, long-term trends, comparison to competitors
| International Business Machines Corp. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 9.60% | 11.19% | 25.85% | 22.74% | 2.92% | 18.19% | 35.96% | 19.76% | 16.13% | 32.11% | 11.87% | 12.97% | 36.94% | 19.02% |
| Dec 31, 2023 | 12.13% | 10.72% | 27.97% | 25.46% | -8.18% | 16.59% | 34.15% | 17.02% | 9.43% | 6.38% | 0.66% | 19.30% | 21.05% | -5.90% |
| Dec 31, 2022 | 2.71% | 11.17% | 27.01% | 23.84% | -16.18% | 16.23% | 36.69% | 15.83% | -19.61% | -4.85% | 5.45% | 4.49% | 19.38% | 0.57% |
| Dec 31, 2021 | 10.01% | 11.69% | 30.55% | 23.29% | -10.59% | 21.41% | 36.45% | 33.96% | -33.75% | -11.72% | 19.16% | 3.90% | 18.02% | -6.54% |
| Dec 31, 2020 | 7.59% | 11.52% | 40.88% | 22.02% | -29.45% | 23.78% | 30.96% | 25.94% | -106.75% | -7.83% | 0.74% | 2.62% | 18.03% | -13.25% |
| Dec 31, 2019 | 12.22% | 11.06% | 26.42% | 42.33% | — | 22.95% | 31.18% | 28.05% | — | -2.82% | 8.36% | 18.11% | 15.84% | -14.82% |
| Dec 31, 2018 | 10.97% | 9.76% | 28.69% | 16.17% | — | 20.31% | 15.02% | 9.60% | — | -6.51% | 1.22% | -1.02% | 13.86% | -14.99% |
| Dec 31, 2017 | 7.27% | 9.37% | 23.20% | 10.50% | — | 18.76% | 23.57% | 24.74% | — | -12.30% | 2.14% | -7.71% | 5.01% | -26.01% |
| Dec 31, 2016 | 14.86% | 11.82% | 19.96% | 11.18% | — | 20.86% | 19.69% | 24.03% | — | -16.39% | -0.71% | -32.49% | 11.01% | -24.94% |
| Dec 31, 2015 | 16.14% | 9.28% | 13.13% | 14.83% | — | 8.71% | 13.03% | 26.00% | — | -17.78% | -4.89% | -19.73% | 10.08% | -31.48% |
| Dec 31, 2014 | 12.96% | 9.23% | 6.47% | 10.05% | — | 20.13% | 25.42% | 28.62% | — | -37.86% | -5.70% | -26.28% | 12.59% | -36.79% |
| Dec 31, 2013 | 16.52% | 10.80% | 7.15% | 11.25% | — | 20.57% | 28.08% | 29.38% | — | -7.38% | -8.87% | -17.36% | 12.63% | -43.55% |
| Dec 31, 2012 | 15.89% | 8.58% | 18.91% | 33.17% | — | 19.08% | 23.03% | 26.89% | — | 0.29% | -0.51% | -15.32% | 10.39% | — |
| Dec 31, 2011 | 14.83% | 8.33% | 19.75% | 6.28% | — | 16.46% | 33.10% | 23.99% | — | — | 3.89% | — | 14.42% | — |
| Dec 31, 2010 | 14.85% | 7.71% | 20.39% | 13.52% | — | 16.61% | 30.02% | 22.87% | — | — | 6.18% | — | 17.17% | — |
| Dec 31, 2009 | 14.02% | 6.86% | 13.12% | -17.58% | — | 14.05% | 24.93% | 24.05% | — | — | 4.03% | — | 12.33% | — |
| Dec 31, 2008 | 11.90% | 6.68% | 24.35% | -178.51% | — | 15.52% | 29.26% | 24.61% | — | — | 2.45% | — | 14.21% | — |
| Dec 31, 2007 | 10.55% | 5.79% | 22.92% | 18.34% | — | 16.46% | 27.51% | 23.75% | — | — | 0.10% | — | 10.76% | — |
| Dec 31, 2006 | 10.38% | 5.34% | 19.64% | 9.61% | — | 17.80% | 28.45% | 23.51% | — | — | 9.19% | — | 2.26% | — |
| Dec 31, 2005 | 8.71% | 5.50% | 30.66% | 3.71% | — | 18.73% | 30.80% | 24.46% | — | — | 4.16% | — | -1.56% | — |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Software & Services)
International Business Machines Corp., net profit margin, long-term trends, comparison to sector (software & services)
| International Business Machines Corp. | Software & Services | |
|---|---|---|
| Dec 31, 2024 | 9.60% | 24.72% |
| Dec 31, 2023 | 12.13% | 21.93% |
| Dec 31, 2022 | 2.71% | 21.70% |
| Dec 31, 2021 | 10.01% | 25.29% |
| Dec 31, 2020 | 7.59% | 20.06% |
| Dec 31, 2019 | 12.22% | 21.64% |
| Dec 31, 2018 | 10.97% | 12.10% |
| Dec 31, 2017 | 7.27% | 15.36% |
| Dec 31, 2016 | 14.86% | 16.49% |
| Dec 31, 2015 | 16.14% | 14.57% |
| Dec 31, 2014 | 12.96% | 18.21% |
| Dec 31, 2013 | 16.52% | 20.55% |
| Dec 31, 2012 | 15.89% | 18.62% |
| Dec 31, 2011 | 14.83% | 20.48% |
| Dec 31, 2010 | 14.85% | 19.41% |
| Dec 31, 2009 | 14.02% | 17.17% |
| Dec 31, 2008 | 11.90% | 16.67% |
| Dec 31, 2007 | 10.55% | 15.91% |
| Dec 31, 2006 | 10.38% | 15.65% |
| Dec 31, 2005 | 8.71% | 15.06% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
International Business Machines Corp., net profit margin, long-term trends, comparison to industry (information technology)
| International Business Machines Corp. | Information Technology | |
|---|---|---|
| Dec 31, 2024 | 9.60% | 20.72% |
| Dec 31, 2023 | 12.13% | 20.39% |
| Dec 31, 2022 | 2.71% | 22.45% |
| Dec 31, 2021 | 10.01% | 23.61% |
| Dec 31, 2020 | 7.59% | 19.67% |
| Dec 31, 2019 | 12.22% | 19.86% |
| Dec 31, 2018 | 10.97% | 18.57% |
| Dec 31, 2017 | 7.27% | 17.85% |
| Dec 31, 2016 | 14.86% | 17.79% |
| Dec 31, 2015 | 16.14% | 18.37% |
| Dec 31, 2014 | 12.96% | 19.38% |
| Dec 31, 2013 | 16.52% | 20.20% |
| Dec 31, 2012 | 15.89% | 20.08% |
| Dec 31, 2011 | 14.83% | 20.68% |
| Dec 31, 2010 | 14.85% | 20.24% |
| Dec 31, 2009 | 14.02% | 14.53% |
| Dec 31, 2008 | 11.90% | 15.21% |
| Dec 31, 2007 | 10.55% | 15.81% |
| Dec 31, 2006 | 10.38% | 16.23% |
| Dec 31, 2005 | 8.71% | 16.66% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).