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International Business Machines (CHIX:IBMd) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
International Business Machines had a gross margin of 57.73% for the quarter that ended in Jun. 2026 => Durable competitive advantage
International Business Machines Gross Profit Related Terms
International Business Machines Gross Profit Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
International Business Machines Gross Profit Chart
CHIX:IBMD vs ACN, FISV, CTSH: Gross Profit Comparison
For the Information Technology Services subindustry, International Business Machines's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
International Business Machines Gross Profit vs Software Industry
For the Software industry and Technology sector, International Business Machines's Gross Profit distribution charts can be found below:
* The bar in red indicates where International Business Machines's Gross Profit falls into.
Gross Profit for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €34,502 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
International Business Machines (CHIX:IBMD) has a Gross Profit of €34,502 Mil as of Jun. 2026. Gross Profit equals net sales less total cost of goods sold. View historical data on International Business Machines and its competitors.
Is International Business Machines' Gross Profit too high?
International Business Machines' current Gross Profit is €34,502 Mil. Overall, International Business Machines has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' Gross Profit compare to ACN and FISV?
International Business Machines' Gross Profit of €34,502 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Profit for a Software company?
A good Gross Profit depends on the Software industry context. However, Gross Profit should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Profit mean?
A high Gross Profit can signal that a stock is expensive relative to its fundamentals. Gross Profit equals net sales less total cost of goods sold. View historical data on International Business Machines and its competitors. International Business Machines's current Gross Profit is €34,502 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is International Business Machines stock overvalued right now?
Based on GuruFocus' analysis, International Business Machines (CHIX:IBMD) is currently considered Modestly Undervalued. The stock's GF Value™ is €212.78, compared to a current price of €190.42 — trading 10.5% below its estimated fair value. The current Gross Profit is €34,502 Mil. International Business Machines' overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Profit calculated?
Gross Profit is calculated from a company's financial statements. For International Business Machines (CHIX:IBMD), the current Gross Profit is €34,502 Mil as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is International Business Machines (CHIX:IBMD) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be undervalued.
The current stock price of €190.42 is trading 10.5% below its estimated GF Value™ of €212.78.
GuruFocus considers International Business Machines to be Modestly Undervalued.
Key valuation signals for CHIX:IBMD:
Gross Profit: €34,502 Mil
GF Value™: €212.78 vs. price of €190.42 (10.5% below fair value)
No single metric tells the full story. See the CHIX:IBMD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
International Business Machines Business Description
Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which includes 95% of all Fortune 500 companies. IBM's products, including Red Hat, watsonx, and mainframes, handle some of the world's most important data workloads in areas like finance and retail.
80GF Score
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Gross Profit is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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