International Business Machines Corporation (IBM) Operating Margin: 16.36%
Is International Business Machines Corporation’s operating margin high or low?
International Business Machines Corporation's operating margin of 16.36% is 21% above its 5-year average of 13.52%, near the high end of its 5-year range (8.45%–16.36%).
As of Wednesday, June 17, 2026. 4.40% above its 12-month average of 15.67%.
IBM Operating Margin Chart
IBM Average Operating Margin Chart
IBM Current vs Average Operating Margin Chart
IBM Operating Margin Metrics
OPERATING MARGIN
16.36%
OPERATING MARGIN AVG TTM
15.67%
OPERATING MARGIN AVG 3Y
15.18%
OPERATING MARGIN AVG 5Y
13.52%
OPERATING MARGIN AVG 10Y
15.09%
OPERATING MARGIN AVG 15Y
17.04%
OPERATING MARGIN AVG 20Y
16.32%
CURRENT VS TTM AVG
+4.40%
CURRENT VS 3Y AVG
+7.77%
CURRENT VS 5Y AVG
+20.98%
CURRENT VS 10Y AVG
+8.43%
CURRENT VS 15Y AVG
-3.98%
CURRENT VS 20Y AVG
+0.23%
IBM Competitors' Operating Margin
| NAME | MARKET CAP | OPERATING MARGIN | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| International Business Machines Corporation (IBM) | $254.53B | 16.36% | 15.67% | 15.18% | 13.52% |
| Marvell Technology, Inc. (MRVL)vs › | $243.78B | 16.20% | 1.92% | -0.61% | -3.16% |
| Western Digital Corporation (WDC)vs › | $234.76B | 30.78% | 9.07% | 5.53% | 5.22% |
| Seagate Technology Holdings plc (STX)vs › | $231.26B | 28.33% | 13.84% | 9.96% | 11.03% |
| Texas Instruments Incorporated (TXN)vs › | $278.22B | 35.29% | 34.50% | 40.37% | 41.85% |
| QUALCOMM Incorporated (QCOM)vs › | $225.63B | 25.52% | 26.88% | 27.84% | 27.85% |
| Sandisk Corporation (SNDK)vs › | $290.08B | 40.93% | -12.87% | -11.72% | -9.38% |
| Arista Networks, Inc. (ANET)vs › | $211.91B | 42.79% | 42.44% | 39.56% | 36.63% |
| Analog Devices, Inc. (ADI)vs › | $202.63B | 32.50% | 24.09% | 26.41% | 25.93% |
| Amphenol Corporation (APH)vs › | $200.63B | 26.00% | 23.72% | 22.19% | 21.32% |
Operating Efficiency
Gross Margin
59.0%
Operating Margin
16.4%
International Business Machines Corporation Operating Margin Formula & Definition
Operating Margin = Operating Income / Revenue
Operating margin is the percentage of revenue remaining after operating expenses, reflecting operating efficiency.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
International Business Machines Corporation Operating Margin FAQ
- What is the operating margin for International Business Machines Corporation (IBM)?
- The operating margin for IBM stock is 16.36%.
- Is International Business Machines Corporation's operating margin high or low?
- International Business Machines Corporation's operating margin of 16.36% is 21% above its 5-year average of 13.52%, near the high end of its 5-year range (8.45%–16.36%).
- What is the TTM average operating margin for International Business Machines Corporation (IBM)?
- The TTM average operating margin for IBM stock is 15.67%.
- What is the 3Y average operating margin for International Business Machines Corporation (IBM)?
- The 3Y average operating margin for IBM stock is 15.18%.
- What is the 5Y average operating margin for International Business Machines Corporation (IBM)?
- The 5Y average operating margin for IBM stock is 13.52%.
- What is the 10Y average operating margin for International Business Machines Corporation (IBM)?
- The 10Y average operating margin for IBM stock is 15.09%.
- What is the 15Y average operating margin for International Business Machines Corporation (IBM)?
- The 15Y average operating margin for IBM stock is 17.04%.
- What is the 20Y average operating margin for International Business Machines Corporation (IBM)?
- The 20Y average operating margin for IBM stock is 16.32%.
International Business Machines Corporation Operating Margin History
| DATE | OPERATING MARGIN |
|---|---|
| 2025-12-31 | 15.29% |
| 2024-12-31 | 16.05% |
| 2023-12-31 | 15.88% |
| 2022-12-31 | 13.50% |
| 2021-12-31 | 11.97% |
| 2020-12-31 | 8.45% |
| 2019-12-31 | 13.06% |
| 2018-12-31 | 16.61% |
| 2017-12-31 | 16.60% |
| 2016-12-31 | 18.36% |
| 2015-12-31 | 20.20% |
| 2014-12-31 | 21.92% |
| 2013-12-31 | 21.86% |
| 2012-12-31 | 22.35% |
| 2011-12-31 | 20.50% |
| 2010-12-31 | 20.01% |
| 2009-12-31 | 17.77% |
| 2008-12-31 | 15.38% |
| 2007-12-31 | 13.68% |
| 2006-12-31 | 13.05% |
| 2005-12-31 | 10.29% |
| 2004-12-31 | 9.99% |
| 2003-12-31 | 9.68% |
| 2002-12-31 | 8.37% |
| 2001-12-31 | 11.86% |
| 2000-12-31 | 13.16% |
| 1999-12-31 | 13.62% |
| 1998-12-31 | 11.22% |
| 1997-12-31 | 11.59% |
| 1996-12-31 | 8.27% |
About International Business Machines Corporation
International Business Machines Corporation (IBM) delivers comprehensive technology solutions and services across the globe. The company's operations are structured into four primary segments: Software, Consulting, Infrastructure, and Financing. The Software division provides hybrid cloud platforms and a range of software offerings, including Red Hat's enterprise open-source solutions. It also develops software for business automation, AIOps and management, integration, and application servers, in addition to data and artificial intelligence tools. This segment further supplies security software and services for threat, data, and identity management, and offers critical transaction processing software that supports essential on-premise workloads for industries such as banking, airlines, and retail. The Consulting arm delivers business transformation services, which encompass strategy development, business process design and operational improvements, data and analytics insights, and system integration. It additionally provides technology consulting and specialized application and cloud platform services. IBM's Infrastructure segment offers both on-premises and cloud-based server and storage solutions, specifically tailored for clients' crucial and regulated operations. It also extends support and solutions for hybrid cloud infrastructure, alongside remanufacturing and remarketing services for used equipment. The Financing segment provides various financial services, such as leasing, installment payment plans, loan financing, and short-term working capital solutions. Originally established in 1911 as the Computing-Tabulating-Recording Co., the company is now known as International Business Machines Corporation and maintains its headquarters in Armonk, New York.
- Sector
- Technology
- Industry
- Information Technology Services
- CEO
- Arvind Krishna