Is IBM halal?
International Business Machines
Halal
International Business Machines passed every check under AAOIFI Shariah standard No. 21: no prohibited business activity, and all three financial ratios are within limits.
Checked: 14 October 2026
Exchange
NYSE
Price
234.12
Day
+2.74%
Market cap
$217.84B
Industry
Information Technology Services
Sector
Technology
What the company does
IBM sells enterprise IT: cloud and AI software (Red Hat, watsonx), IT consulting and mainframe servers (z Systems). Revenue comes from software subscriptions, consulting contracts and hardware; it has serviced banks' and governments' core systems for decades.
What was checked
The AAOIFI standard has four steps: business activity first, then three financial ratios. Fail one and the stock is not halal.
Business activity
No prohibited activity
Interest-bearing debt / market cap
limit 30%
Interest-bearing debt $61.99B ÷ 36-month average market cap $221.04B = 28.0%
28.0%
Pass
Cash & investments / market cap
limit 30%
Cash + interest-bearing securities $8.13B ÷ 36-month average market cap $221.04B = 3.7%
3.7%
Pass
Non-compliant income / total revenue
limit 5%
Interest income $645.00M ÷ annual revenue $67.54B (2025) = 1.0%
1.0%
Pass
Figures from the company's filings (2026-06-30), USD. Market cap is a 36-month average (the S&P Shariah index approach), so a one-day price move does not flip the verdict. Today's market cap: $217.84B.
For information (AAOIFI 3/1 note): cash + receivables are 14.0% of total assets (2026-06-30). AAOIFI recommends tangible assets of at least one third — this figure does not affect the verdict, and other major screeners do not apply it either.
In the lists
- In the S&P 500
- 0.32% weight · #52 of 503
- Among halal stocks
- 0.32% · #45 of 1455
- Held by funds
- SPUS 0.54% · SPTE 0.53%
- Dividend
- 2.96% · purify 1.0% · net 2.94%
Superinvestors
SEC 13F, 2026 Q3. Up to 45 days delayed.Held by 4 superinvestors · Average reported price: $281.21
- Arnold Van Den BergCentury Management$11.2M2.4%
- Kahn Brothers Group$345K0.1%
- Dodge & Cox Funds$12.9M0.0%
- Mairs & Power Funds$1.0M0.0%
Exited this quarter: David Katz
All superinvestor portfoliosHalal stocks in the same industry
The largest halal stocks in Information Technology Services — for comparison.
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Halal is the first question. The second: when to enter?
Our scanner watches 1454 halal stocks around the clock and fires a signal with entry, TP and SL when a technical setup completes. The full signal history — with outcomes — is public.
This is neither investment advice nor a fatwa. Screening is based on public financial statements and AAOIFI standard No. 21; data may lag. For a personal decision consult your own scholar.