Is International Business Machines (IBM) stock halal?
Screened against AAOIFI Shari’ah Standard 21
Yes. International Business Machines (IBM) passes the AAOIFI Shari’ah Standard 21 screen. Interest-bearing debt is 28.6% of its 36-month average market value (limit: under 30%), and prohibited income is 2.0% of revenue (limit: 5%). Last checked 15 September 2026.
International Business Machines is compliant under Halal / Islamic guidelines
AAOIFI Shari’ah Standard 21 Financial Audit
Figures from the latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance) and a 36-month average market value.
| Test | Standard Limit | Actual Figure | Status |
|---|---|---|---|
| Main business | — | — | Pass |
| Interest-bearing debt | 30% | 28.63% | Pass |
| Cash and interest-bearing investments | 30% | 6.61% | Pass |
| Prohibited income | 5% | 2.05% | Pass |
| Not just cash and debts | 90% | 14.29% | Pass |
Key Findings & Observations
- 1.1% of revenue comes from conventional banking, lending or insurance (its ‘Financing’ division, annual report for the year ending 31 Dec 2025).Source: Business check
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Frequently Asked Questions about International Business Machines Corporation (IBM)
Is International Business Machines (IBM) stock halal?▾
Yes. International Business Machines (IBM) passes the AAOIFI Shari’ah Standard 21 screen. Interest-bearing debt is 28.6% of its 36-month average market value (limit: under 30%), and prohibited income is 2.0% of revenue (limit: 5%). Last checked 15 September 2026.
What is International Business Machines's debt ratio under Islamic finance standards?▾
Under AAOIFI Shari’ah Standard 21, interest-bearing debt must stay under 30% of a company's 36-month average market value. International Business Machines's ratio is about 28.6%.
How much dividend purification is required for International Business Machines (IBM) stock?▾
Under AAOIFI Shari’ah Standard 21, shareholders should give away the part of their income that comes from prohibited sources: $1.47 per share for the latest financial year. The amount goes to charity, without counting it as one's own donation.
Does International Business Machines operate in prohibited business activities?▾
AAOIFI Shari’ah Standard 21 excludes companies whose main business is prohibited, such as alcohol, pork, gambling, conventional interest-based finance and adult entertainment. International Business Machines's main business is checked against these. For companies that file with the US SEC, revenue by division is also read from the filing, so a division in a prohibited business is counted. Where the check cannot be settled, the result is shown as Needs Review rather than guessed.
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