Revenue Breakdown
Composition ()
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Revenue Streams
International Business Machines Corp (IBM) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Strategy and Technology , accounting for 17.8% of total sales, equivalent to $2.90B. Other significant revenue streams include Intelligent Operations and Hybrid Infrastructure. Understanding this composition is critical for investors evaluating how IBM navigates market cycles within the IT Services & Consulting industry.
Profitability & Margins
Evaluating the bottom line, International Business Machines Corp maintains a gross margin of 60.59%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 22.97%, while the net margin is 35.80%. These profitability ratios, combined with a Return on Equity (ROE) of 39.14%, provide a clear picture of how effectively IBM converts its operational activities into shareholder value.
Comparative Benchmarking
In the context of the broader market, IBM competes directly with industry leaders such as ACN and NET. With a market capitalization of $225.33B, it holds a leading position in the sector. When comparing efficiency, IBM's gross margin of 60.59% stands against ACN's 33.07% and NET's 73.64%. Such benchmarking helps identify whether International Business Machines Corp is trading at a premium or discount relative to its financial performance.
