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Arphra AIPlain-English read on International Business Machines Corporation’s valuationIncome statement
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Revenue & profit | |||||||||
| Revenue | $57.35B | $60.53B | $61.86B | $62.75B | $67.54B | $71.47B | $74.62B | $78.89B | $79.79B |
| Cost of revenue | $25.87B | $27.84B | $27.56B | $27.2B | $27.35B | $29.93B | $31.68B | $34.11B | $34.61B |
| Gross profit | $31.49B | $32.69B | $34.3B | $35.55B | $40.19B | $40.17B | $41.99B | $46.09B | $44.57B |
| Gross margin | +54.90% | +54.00% | +55.45% | +56.65% | +59.50% | +56.20% | +56.27% | +58.43% | +55.87% |
| Operating | |||||||||
| Research & development | $6.49B | $6.57B | $6.78B | $7.48B | $8.32B | $8.18B | $8.79B | $9.08B | $9.45B |
| Selling, general & administrative | $18.75B | $18.61B | $17.56B | $17.91B | $21.54B | $21.06B | $21.81B | $23.03B | $24.15B |
| Total operating expenses | $24.62B | $24.51B | $24.48B | $25.48B | $29.86B | $30.1B | $30.59B | $33.62B | $33.48B |
| Operating income | $6.87B | $8.17B | $9.82B | $10.07B | $10.33B | $11.14B | $11.6B | $12.17B | $12.66B |
| Operating margin | +11.97% | +13.50% | +15.88% | +16.05% | +15.29% | +15.59% | +15.55% | +15.43% | +15.87% |
| EBITDA | $12.41B | $7.17B | $14.69B | $12.18B | $17.28B | $15.92B | $17.3B | $17.92B | $18.04B |
| EBIT | $5.99B | $2.37B | $10.3B | $7.51B | $12.26B | $10.92B | $11.93B | $12.48B | $12.73B |
| Below the line | |||||||||
| Interest expense | $1.16B | $1.22B | $1.61B | $1.71B | $1.94B | $1.92B | $2.04B | $2.15B | $2.22B |
| Interest income | $52M | $162M | $670M | $747M | $0 | $544.62M | $573.86M | $589.8M | $611.38M |
| Other income / expense | -$2.03B | -$7.02B | -$1.13B | -$4.28B | $3M | — | — | — | — |
| Pre-tax income | $4.84B | $1.16B | $8.69B | $5.8B | $10.33B | $9.41B | $9.34B | $10B | $9.98B |
| Income tax expense | $124M | -$626M | $1.18B | -$218M | -$242M | $233.3M | $241.84M | $257.27M | $260.81M |
| Earnings | |||||||||
| Net income | $5.74B | $1.64B | $7.5B | $6.02B | $10.59B | $8.71B | $9.21B | $9.99B | $10.15B |
| Net income · continuing ops | $4.71B | $1.78B | $7.51B | $6.02B | $10.57B | $8.75B | $9.33B | $9.98B | $10.17B |
| Net margin | +10.01% | +2.71% | +12.13% | +9.60% | +15.69% | +12.18% | +12.34% | +12.67% | +12.72% |
| EPS · basic | $6.41 | $1.82 | $8.23 | $6.53 | $11.36 | $12.43 | $13.70 | $14.88 | $12.30 |
| EPS · diluted | $6.35 | $1.80 | $8.14 | $6.43 | $11.17 | $12.44 | $13.42 | $14.86 | $12.07 |
| EPS · low estimate | — | — | — | — | — | $12.14 | $12.73 | $13.73 | $11.88 |
| EPS · high estimate | — | — | — | — | — | $12.58 | $13.80 | $16.29 | $12.23 |
| Shares · basic | 895.99M | 902.66M | 911.21M | 937.2M | 932.3M | 932.03M | 934.69M | 928.87M | 940.41M |
| Shares · diluted | 904.64M | 912.27M | 922.07M | 937.2M | 948.7M | 956.86M | 944.79M | 951.55M | 948.52M |
| Coverage | |||||||||
| Analysts (revenue) | — | — | — | — | — | 15 | 16 | 12 | 11 |
| Analysts (EPS) | — | — | — | — | — | 12 | 12 | 5 | 1 |
Coverage notes. Historical figures come’s as-reported income statements / balance sheets / cash flows in our data warehouse. Forecast columns (italicised, faint accent tint) carry vendor-supplied numbers where available (revenue + EPS consensus) and ratio-derived values for every other line. Margins / ratios are the trailing-3y average from history applied to the forecast revenue; values are clamped to enforce P&L identity (gross ≥ operating, EBITDA ≥ operating, net ≤ operating) and balance-sheet identity (assets = liabilities + equity by construction). Cash-flow FCF reconciles to OCF + CapEx. USD conversion uses the period-end close of the issuer's reported/USD pair from forex_prices_daily; share counts stay unconverted.
Financials
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