President Obama made the remarks on Monday after a meeting with the military brass, saying the current strategy is effective.
"Altogether, ISIL has lost more than a quarter of the populated areas that it had seized in Iraq. And in Syria, ISIL lost Kobani. It recent endured losses across northern Syria, including the key city of Talabia, denying ISIL of vital supply route to Raqqah, its base of operations in Syria."
He stressed that the United States is working with 60 countries and more local forces are joining the efforts. He pledged that the U.S. will continue to provide training and equipment to local forces, including to Kurdish and tribal forces.
The President also cautioned that the United States and other countries must remain vigilant against "lone wolves" who might be inspired by the Islamic State to launch terrorist attacks on US soil.
"This broad challenge of countering violent extremism is not simply a military effort. Ideologies are not defeated with guns. They are defeated by better ideas, more attractive and more compelling vision."
President Obama also called for diplomatic and economic efforts that include efforts to cut off terrorists' money.
He also ruled out the possibility of sending more U.S. troops to the region.
The U.S.-led war against the Islamic State began last August and continues with almost daily air strikes. However, many are critical of the results, calling for a more robust U.S. response against IS.
Defense Secretary Ash Carter and Army Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, are scheduled to testify on Tuesday before the Armed Services Committee of the Senate on the Pentagon's strategy against the Islamic State militants.
