International Business Machines Corporation (IBM) Gross Margin: 58.97%
Is International Business Machines Corporation’s gross margin high or low?
International Business Machines Corporation's gross margin of 58.97% is in line with its 5-year average of 56.07%, near the high end of its 5-year range (54.00%–59.50%).
As of Thursday, June 11, 2026. 1.54% above its 12-month average of 58.08%.
IBM Gross Margin Chart
IBM Average Gross Margin Chart
IBM Current vs Average Gross Margin Chart
IBM Gross Margin Metrics
GROSS MARGIN
58.97%
GROSS MARGIN AVG TTM
58.08%
GROSS MARGIN AVG 3Y
56.40%
GROSS MARGIN AVG 5Y
56.07%
GROSS MARGIN AVG 10Y
52.92%
GROSS MARGIN AVG 15Y
51.47%
GROSS MARGIN AVG 20Y
49.41%
CURRENT VS TTM AVG
+1.54%
CURRENT VS 3Y AVG
+4.56%
CURRENT VS 5Y AVG
+5.17%
CURRENT VS 10Y AVG
+11.43%
CURRENT VS 15Y AVG
+14.57%
CURRENT VS 20Y AVG
+19.36%
IBM Competitors' Gross Margin
| NAME | MARKET CAP | GROSS MARGIN | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| International Business Machines Corporation (IBM) | $253.21B | 58.97% | 58.08% | 56.40% | 56.07% |
| Texas Instruments Incorporated (TXN) | $260.63B | 57.32% | 57.58% | 61.71% | 63.06% |
| Marvell Technology, Inc. (MRVL) | $231.37B | 50.64% | 46.17% | 46.11% | 46.80% |
| Palantir Technologies Inc. (PLTR) | $297.94B | 84.07% | 81.31% | 80.45% | 77.92% |
| QUALCOMM Incorporated (QCOM) | $204.28B | 54.80% | 55.82% | 56.30% | 57.23% |
| KLA Corporation (KLAC) | $302.37B | 61.75% | 61.14% | 60.77% | 60.14% |
| Analog Devices, Inc. (ADI) | $195.95B | 64.49% | 59.27% | 60.85% | 62.78% |
| Arista Networks, Inc. (ANET) | $191.09B | 63.54% | 64.09% | 62.80% | 63.16% |
| Palo Alto Networks, Inc. (PANW) | $185.38B | 71.94% | 73.88% | 72.20% | 71.59% |
| Amphenol Corporation (APH) | $183.21B | 37.35% | 35.32% | 33.77% | 32.89% |
Gross Margin Analysis
Gross Margin
59.0%
(Revenue - COGS) / Revenue
International Business Machines Corporation Gross Margin Formula & Definition
Gross Margin = Gross Profit / Revenue
Gross margin is the percentage of revenue remaining after the cost of goods sold, reflecting core product profitability.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
International Business Machines Corporation Gross Margin FAQ
- What is the gross margin for International Business Machines Corporation (IBM)?
- The gross margin for IBM stock is 58.97%.
- Is International Business Machines Corporation's gross margin high or low?
- International Business Machines Corporation's gross margin of 58.97% is in line with its 5-year average of 56.07%, near the high end of its 5-year range (54.00%–59.50%).
- What is the TTM average gross margin for International Business Machines Corporation (IBM)?
- The TTM average gross margin for IBM stock is 58.08%.
- What is the 3Y average gross margin for International Business Machines Corporation (IBM)?
- The 3Y average gross margin for IBM stock is 56.40%.
- What is the 5Y average gross margin for International Business Machines Corporation (IBM)?
- The 5Y average gross margin for IBM stock is 56.07%.
- What is the 10Y average gross margin for International Business Machines Corporation (IBM)?
- The 10Y average gross margin for IBM stock is 52.92%.
- What is the 15Y average gross margin for International Business Machines Corporation (IBM)?
- The 15Y average gross margin for IBM stock is 51.47%.
- What is the 20Y average gross margin for International Business Machines Corporation (IBM)?
- The 20Y average gross margin for IBM stock is 49.41%.
International Business Machines Corporation Gross Margin History
| DATE | GROSS MARGIN |
|---|---|
| 2025-12-31 | 59.50% |
| 2024-12-31 | 56.65% |
| 2023-12-31 | 55.45% |
| 2022-12-31 | 54.00% |
| 2021-12-31 | 54.90% |
| 2020-12-31 | 55.94% |
| 2019-12-31 | 54.64% |
| 2018-12-31 | 46.41% |
| 2017-12-31 | 46.68% |
| 2016-12-31 | 48.19% |
| 2015-12-31 | 49.77% |
| 2014-12-31 | 50.01% |
| 2013-12-31 | 49.49% |
| 2012-12-31 | 48.95% |
| 2011-12-31 | 46.89% |
| 2010-12-31 | 46.07% |
| 2009-12-31 | 45.72% |
| 2008-12-31 | 44.06% |
| 2007-12-31 | 42.24% |
| 2006-12-31 | 41.89% |
| 2005-12-31 | 40.09% |
| 2004-12-31 | 36.94% |
| 2003-12-31 | 36.52% |
| 2002-12-31 | 37.30% |
| 2001-12-31 | 38.39% |
| 2000-12-31 | 36.68% |
| 1999-12-31 | 36.47% |
| 1998-12-31 | 37.80% |
| 1997-12-31 | 38.99% |
| 1996-12-31 | 38.16% |
Related Metrics
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