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Is International Business Machines (IBM) Halal?

Shariah Compliance Analysis for IBM Stock

Not Halal

As of May 2026, no, International Business Machines (IBM) stock is not halal to invest in. Based on AAOIFI Shariah screening standards, International Business Machines does not meet Islamic investment criteria due to non-compliant business activities or financial ratios.

About International Business Machines (IBM)

Symbol
IBM
Company
International Business Machines

IBM Shariah Compliance Status

Current Status
Haram (Not Shariah-Compliant)
Last Review
May 4, 2026
Screening Standard
AAOIFI
Review Frequency
Quarterly

How We Determine if IBM Is Halal

Our Shariah compliance screening indicates that International Business Machines does not currently meet Islamic investment criteria under AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standards. Here's how we evaluate IBM:

  1. Business Activity Screening: International Business Machines is evaluated to ensure its primary revenue comes from halal (permissible) activities. Companies involved in alcohol, gambling, tobacco, conventional banking, adult entertainment, or weapons manufacturing are excluded.
  2. Financial Ratio Screening: The company's debt-to-market-cap ratio must be below 30%. Interest-bearing income and impure income must each remain below 5% of total revenue.
  3. Ongoing Monitoring: International Business Machines is reviewed at minimum once per quarter. The most recent review was completed on May 4, 2026. If the company's operations, acquisitions, or financial structure change significantly, an immediate review is conducted.

Frequently Asked Questions About IBM

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

As of May 2026, no, IBM stock is not halal to invest in. International Business Machines doesn't pass the AAOIFI financial screening, typically due to too much debt or interest income. This is reviewed quarterly, so it could change.

Are dividends from International Business Machines (IBM) stock halal?

No, dividends from IBM are not considered halal because the stock is currently not Shariah-compliant. Any dividends you receive should be donated to charity in full as purification (tatheer).

How often is International Business Machines stock reviewed for Shariah compliance?

International Business Machines is reviewed at minimum once per quarter. The most recent review was completed on May 4, 2026. If there are any significant changes in the company's operations, acquisitions, or financial structure, an immediate review is conducted. On Amal Invest, compliance is monitored round the clock and non-compliant stocks are automatically removed from your portfolio.

Can I invest in IBM through halal investment platforms?

Since IBM is not currently Shariah-compliant, it would not be included in halal investment platforms that screen for Islamic compliance. If you're looking for halal alternatives, the Amal Invest app can help you discover Shariah-compliant stocks with similar characteristics.

Do I need to pay Zakat on IBM stock?

If you hold IBM stock (for example, through an employer stock plan), you should prioritize selling the shares within a reasonable timeframe since the stock is not Shariah-compliant. In the meantime, Zakat may still be due on the market value of your holdings. Consult a qualified Islamic scholar for guidance. Any profits from the non-compliant period should be purified by donating them to charity. Learn more in our guide to Zakat on stocks.

How can I stay updated on International Business Machines's compliance status?

Shariah compliance can change due to shifts in a company's financial ratios, business activities, or corporate structure. With Amal Invest, compliance ratings are monitored round the clock for all stocks you're invested in. Non-compliant ones are automatically removed for you. You can also check back on this page, which is updated quarterly.

What are halal alternatives to International Business Machines (IBM)?

Amal Invest screens thousands of stocks and lets you filter by sector, market cap, and compliance status. It's the easiest way to find compliant alternatives to IBM.

Disclaimer: The information provided here is for educational purposes only and should not be considered as investment advice. Shariah compliance can change over time based on a company's business activities and financial structure. Always consult with qualified financial and religious advisors before making investment decisions.