---
title: "Is International Business Machines Stock Halal?"
canonical: https://www.halalwallet.ca/is-it-halal/international-business-machines-stock
publisher: HalalWallet
license: CC BY 4.0
verdict: halal
verdict_label: Halal
entity_type: stock
ticker: IBM
exchange: NYSE
last_reviewed: 2026-06-14
data_as_of: 2026-03-31
standards_disagree: true
authorities_with_position: 4
authority_agreement: split
---
# Is International Business Machines Stock Halal?

**Authority consensus:** Halal screening authorities disagree on International Business Machines Corporation: halal (HalalWallet (AAOIFI), Wahed (HLAL ETF), SP Funds (SPUS ETF)); not halal (Musaffa).

**Verdict: Halal** (Generally permissible)

International Business Machines Corporation (IBM) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 25.9% of market cap and cash plus interest-bearing securities 4.6% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.

> HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.

## How we read the evidence

International Business Machines Corporation (IBM) delivers comprehensive technology solutions and services across the globe. The screening question on this name turns on its revenue mix — review the latest 10-K segment disclosure to confirm.

On AAOIFI financial ratios as of 2026-03-31: interest-bearing debt is 25.9% of market cap, cash plus interest-bearing securities 4.6%, and filing-verified impermissible income — (Net other income $3M on $67.5B revenue (FY2025) — immaterial; interest income not separately material. (IBM FY2025 10-K.…) — against 30%/30%/5% limits on our screen.

Zoya's public page did not return a clear status when we checked (checked 2026-06-15). Musaffa lists it NOT HALAL. U.S. Shariah ETFs SPUS and HLAL publish holdings on their own schedules — absence from a top-holdings list is not the same as a failed screen; verify current ETF holdings if index validation matters to you.

Practical takeaway: business activity passes on our reading, ratios pass on dated figures above, and major retail screeners lean compliant — still re-check after each 10-K, purify incidental interest income from dividends, and avoid margin or options on the position.

## Business activity screen

Result: Pass

International Business Machines Corporation (IBM) delivers comprehensive technology solutions and services across the globe. The company's operations are structured into four primary segments: Software, Consulting, Infrastructure, and Financing. The Software division provides hybrid cloud platforms and a range of software offerings, including Red Hat's enterprise open-source solutions. It also develops software for business automation, AIOps and management, integration, and application servers, 

Net other income $3M on $67.5B revenue (FY2025) — immaterial; interest income not separately material. (IBM FY2025 10-K.)

## Financial ratio screen (AAOIFI)

Data as of: 2026-03-31

| Screen | Value | Limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 25.9% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 4.6% | < 30% | Pass |
| Impermissible income / total revenue | — | < 5% | Pass |

Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology

## How it screens across Shariah standards

These standards disagree on this company — it passes some and fails others, which is why different apps can show different answers. The headline label follows AAOIFI (the strictest mainstream standard).

| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 25.9% | 4.6% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah threshold | 25.9% | 4.6% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basis | 42.5% | 7.5% | < 33.33% of total assets | Fail |

HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded); the < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen.

## Scholars' and screeners' positions

- **Musaffa**: Public page classifies the stock NOT HALAL (checked 2026-06-15). ([source](https://musaffa.com/stock/IBM/))
- **SP Funds S&P 500 Sharia ETF (SPUS)**: Held in SPUS as of 2026-06-15 — passed the S&P 500 Shariah screen applied by the fund. ([source](https://www.sp-funds.com/spus/))
- **Wahed FTSE USA Shariah ETF (HLAL)**: Held in HLAL as of 2026-06-15 — passed the FTSE USA Shariah screen applied by the fund. ([source](https://funds.wahedinvest.com/))
- **HalalWallet AAOIFI screen**: Rates International Business Machines Corporation (IBM) Shariah-compliant under AAOIFI: the core business is permissible and every financial ratio is within limits — interest-bearing debt 25.9% of market cap (limit 30%), cash plus interest-bearing securities 4.6% (limit 30%) on 2026-03-31 figures. ([source](/halal-stock-screening-methodology))

## Purification

Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.

## Sources

- IBM latest quarterly filing (balance sheet 2026-03-31) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=International%20Business%20Machines%20Corporation&type=10-Q)
- AAOIFI Shariah Standards (https://aaoifi.com)
- International Business Machines Corporation SEC EDGAR filings (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=International%20Business%20Machines%20Corporation&type=10-K)
- Zoya — IBM Shariah compliance (https://zoya.finance/stocks/ibm)
- Musaffa — IBM (https://musaffa.com/stock/IBM/)
- SPUS Schedule of Investments reference (2026-02-28) (https://www.sec.gov/Archives/edgar/data/1742912/000200032426001717/spus-soi_022826.htm)
- HLAL holdings reference (2026-06-05) (https://stockanalysis.com/etf/hlal/holdings/)

## Frequently asked questions

### Is International Business Machines Corporation (IBM) stock halal?

Yes, under our AAOIFI-based methodology International Business Machines Corporation passes the business-activity and financial-ratio screens as shown on this page (data as of 2026-03-31). Check the dated ratio table before investing; ratios move with the share price.

### Does International Business Machines Corporation pass the AAOIFI financial ratio screen?

As of 2026-03-31: interest-bearing debt is 25.9% of market cap (limit < 30%); cash plus interest-bearing securities is 4.6% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page.

### Is International Business Machines Corporation held in halal ETFs like SPUS or HLAL?

Check the scholar/screener positions and sources on this page for current SPUS, HLAL, Zoya, and Musaffa statuses.

### Do I need to purify dividends from International Business Machines Corporation?

Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash; donate the proportional share of dividends attributable to that income.

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---

Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30).

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