Is International Business Machines Corp. IBM stock halal to invest in?

Yes, as of August 2026, International Business Machines Corp. stock (IBM) is classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. International Business Machines Corp. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 97.87%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of International Business Machines Corp. and explore other Shariah compliant stocks in the Tabadulat app.

How often is International Business Machines Corp. IBM reviewed for Shariah compliance?

Tabadulat reviews International Business Machines Corp. IBM for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for International Business Machines Corp. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does International Business Machines Corp. IBM pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, International Business Machines Corp. stock (IBM) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. International Business Machines Corp.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does International Business Machines Corp. IBM pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, International Business Machines Corp. stock (IBM) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). International Business Machines Corp.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does International Business Machines Corp. IBM pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, International Business Machines Corp. stock (IBM) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. International Business Machines Corp.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for International Business Machines Corp. IBM stock?

As of August 2026, the dividend purification factor for International Business Machines Corp. (IBM) is 97.87%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on International Business Machines Corp. dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does International Business Machines Corp. IBM pass the AAOIFI Preference Share screen?

Yes, as of August 2026, International Business Machines Corp. stock (IBM) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. International Business Machines Corp. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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International Business Machines Corp.

NYSE

Shariah-Compliant

Not Shariah

IBM

About

International Business Machines Corp.

IBM

International Business Machines Corporation, commonly known as IBM, is a global technology and consulting company primarily known for its enterprise solutions. IBM operates in various segments including cloud computing, artificial intelligence (AI), blockchain, and quantum computing, providing critical infrastructure to businesses and governments worldwide. A pivotal player in the IT services industry, IBM offers software products like Watson, a powerful AI system, and collaborates on large-scale data management and analytics projects. IBM is also heavily involved in the IT consulting sector, helping organizations modernize operations through digital transformation initiatives. Headquartered in Armonk, New York since its founding in 1911, the company has been instrumental in driving advancements in computing technology. IBM's contributions significantly impact sectors ranging from healthcare to finance, making it an integral entity within the tech industry and global economy.

Sector:

Technology

Industry:

Information Technology Services

Employees:

270300

Website:

https://www.ibm.com

IBM

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International Business Machines Corp.

About

International Business Machines Corp.

IBM

Frequently asked questions

Is International Business Machines Corp. IBM stock halal to invest in?

How often is International Business Machines Corp. IBM reviewed for Shariah compliance?

Does International Business Machines Corp. IBM pass the AAOIFI Non Permissible Income criteria?

Does International Business Machines Corp. IBM pass the AAOIFI Interest Bearing Investments criteria?

Does International Business Machines Corp. IBM pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for International Business Machines Corp. IBM stock?

Does International Business Machines Corp. IBM pass the AAOIFI Preference Share screen?

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