The historical rank and industry rank for International Business Machines's Net Margin % or its related term are showing as below:
XTER:IBM'
s Net Margin % Range Over the Past 10 Years
Min: 2.71 Med: 10.55 Max: 16.34
Current: 15.61
XTER:IBM's Net Margin % is ranked better than 85.27% of 2825
companies
in the Software industry
Industry Median: 2.54
vs XTER:IBM: 15.61
International Business Machines (XTER:IBM) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
International Business Machines Net Margin % Related Terms
International Business Machines Net Margin % 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 Net Margin % Chart
XTER:IBM vs ACN, FISV, CTSH: Net Margin % Comparison
For the Information Technology Services subindustry, International Business Machines's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, International Business Machines's Net Margin % distribution charts can be found below:
* The bar in red indicates where International Business Machines's Net Margin % falls into.
* 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 (XTER:IBM) has a Net Margin % of 7.64% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on International Business Machines and its competitors. This is 28% below median its historical median of 10.55. Over the past decade, International Business Machines' Net Margin % has ranged from 2.71 to 16.34. According to the industry distribution chart, International Business Machines ranks #416 out of 2825 companies in the Software industry, placing it in the top 14.7%.
Is International Business Machines' Net Margin % too high?
International Business Machines' current Net Margin % of 7.64% is 28% below median its 10-year median of 10.55. Over the past 10 years, this metric has ranged from a low of 2.71 to a high of 16.34. The Software industry median Net Margin % is 2.54. International Business Machines' value of 7.64% is 200.8% above this industry median. Based on the distribution chart, International Business Machines ranks #416 out of 2825 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, International Business Machines has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' Net Margin % compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #416 out of 2825 companies for Net Margin %. This places International Business Machines in the top 15% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. International Business Machines' value of 7.64% is 200.8% above this benchmark. Historically, International Business Machines' own Net Margin % has ranged from 2.71 to 16.34 over the past decade. While the company's 10-year median is 10.55 vs. the industry median of 2.54, International Business Machines has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current Net Margin % of 7.64% is 200.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on International Business Machines and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current Net Margin % is 7.64%, which is 28% below median its own 10-year median of 10.55. 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 (XTER:IBM) is currently considered Modestly Overvalued. The stock's GF Value™ is €209.60, compared to a current price of €232.50 — trading 10.9% above its estimated fair value. The current Net Margin % is 7.64%, which is 28% below median its 10-year median of 10.55 and 200.8% above the Software industry median of 2.54. International Business Machines' overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For International Business Machines (XTER:IBM), the current Net Margin % is 7.64% as of Mar. 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 (XTER:IBM) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be overvalued.
The current stock price of €232.50 is trading 10.9% above its estimated GF Value™ of €209.60.
GuruFocus considers International Business Machines to be Modestly Overvalued.
Key valuation signals for XTER:IBM:
Net Margin %: 7.64% (28% below median its 10-year median of 10.55)
GF Value™: €209.60 vs. price of €232.50 (10.9% above fair value)
Industry Position: 200.8% above the Software median (#416 of 2825)
No single metric tells the full story. See the XTER:IBM 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.
69GF Score
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