Does International Business Machines Corporation pass AAOIFI screening?

International Business Machines Corporation (IBM) partially passes with caution AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (IBM: 26.6%), (3) interest-bearing deposits below 30% (IBM: 6.6%), and (4) prohibited income below 5% (IBM: 1.3%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for International Business Machines Corporation stock?

International Business Machines Corporation (IBM) has a non-permissible income ratio of 1.31%. Muslim investors should purify this percentage of any dividends received and capital gains realized from IBM shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen International Business Machines Corporation for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for International Business Machines Corporation (IBM) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about IBM's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

IBM: Is International Business Machines Corporation Halal?

International Business Machines Corporation

NYSETechnologyUS

$212.67

+3.72%

Market Cap: 199.9B

Compliance Status

Doubtful

Screened on Jul 17, 2026 · AAOIFI Standard 21

Acceptable

66Score

Is International Business Machines Corporation (IBM) halal? Doubtful. Based on AAOIFI screening, International Business Machines Corporation passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 66/100 (Grade: B).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Close to the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

26.6% of 30.0% limit

What this means for you

You may own IBM, with caution

Its numbers sit close to AAOIFI limits. Cautious investors may prefer alternatives or ask a scholar first.

Purify 1.3% of your income from IBM

That is about $1.30 of every $100 you earn from it. Donate this share to charity.

Calculate my exact amount

About International Business Machines Corporation

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, in addition to data and artificial intelligence tools. This segment further supplies security software and services for threat, data, and identity management, and offers critical transaction processing software that supports essential on-premise workloads for industries such as banking, airlines, and retail. The Consulting arm delivers business transformation services, which encompass strategy development, business process design and operational improvements, data and analytics insights, and system integration. It additionally provides technology consulting and specialized application and cloud platform services. IBM's Infrastructure segment offers both on-premises and cloud-based server and storage solutions, specifically tailored for clients' crucial and regulated operations. It also extends support and solutions for hybrid cloud infrastructure, alongside remanufacturing and remarketing services for used equipment. The Financing segment provides various financial services, such as leasing, installment payment plans, loan financing, and short-term working capital solutions. Originally established in 1911 as the Computing-Tabulating-Recording Co., the company is now known as International Business Machines Corporation and maintains its headquarters in Armonk, New York.

Sector: Technology · Industry: Information Technology Services

Why This Stock Is Doubtful

Debt is 26.6% of market cap, only 3.4 points below the 30% AAOIFI limit

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 17, 2026

Compliance History

Doubtfulnow
since Jul 2026
Halal
until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR

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Frequently Asked Questions

Is International Business Machines Corporation (IBM) halal to invest in?

International Business Machines Corporation (IBM) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.

Why did International Business Machines Corporation get a B compliance rating?

International Business Machines Corporation (IBM) received a grade of B (Acceptable) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 26.6% (limit 30%); interest-bearing deposits of 6.6% (limit 30%); prohibited income of 1.31% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change International Business Machines Corporation's Shariah verdict?

International Business Machines Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is International Business Machines Corporation re-screened for Shariah compliance?

International Business Machines Corporation (IBM) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 17, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.