International Business Machines Corp
ibm.comWhat Do They Do?
Sells software and computer systems to business clients, and provides consulting and infrastructure services for application modernization and hybrid cloud projects.
10-K for FY2025, filed Feb 24, 2026International Business Machines Corporation (IBM or the company) was incorporated in the State of New York on June 16, 1911, as the…View ↗
The company’s software offerings include solutions in Hybrid Cloud (Red Hat), Automation, Data, and Transaction Processing reported within…View ↗
The company’s hardware offerings include the sale or lease of solutions such as IBM Z, Power and Storage in Hybrid Infrastructure reported…View ↗
Consulting integrates strategy, experience design, technology and operations expertise by domain across industries to deliver…View ↗
How Do They Make Money?
Clients are invoiced when products transfer or services are performed, with payment generally due within 30 days. IBM sells shipped hardware and one-time perpetual software licenses; services and support earn fees over service periods or by usage, while Financing earns interest on client transactions.
10-K for FY2025, filed Feb 24, 2026The company’s standard billing terms are that payment is due upon receipt of invoice, payable within 30 days. Invoices are generally issued…View ↗
Revenue from hardware sales is recognized when control has transferred to the customer which typically occurs when the hardware has been…View ↗
Revenue from proprietary perpetual (one-time charge) license software is recognized at a point in time at the inception of the arrangement…View ↗
Revenue from time-and-material contracts is recognized on an output basis as labor hours are delivered and/or direct expenses are incurred.…View ↗
Financing interest income reflects the income associated with Financing's external client transactions. Financing interest expense reflects…View ↗
$67.5B
-
10-K for FY2025, filed Feb 24, 2026
$67.5B ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
Services
Mix
10-K for FY2025, filed Feb 24, 2026 |
45%
FY2022: 50%
|
Services, FY2025
$30.7B Sources
|
Mix |
|
Sales
|
53%
FY2022: 49%
|
Sales, FY2025
$36.1B Sources
|
|
|
Financing
|
1.1%
FY2022: 1.1%
|
Financing, FY2025
$737M Sources
|
Who Are Their Customers?
Clients contract with IBM for software, hardware and services; IBM also sells to solution providers, resellers and distributors, and works with partners to deliver combined solutions.
10-K for FY2025, filed Feb 24, 2026The company accounts for a contract with a client when it has written approval, the contract is committed, the rights of the parties…View ↗
The company recognizes revenue on sales to solution providers, resellers and distributors (herein referred to as resellers) when the…View ↗
We proactively partner with a broad variety of companies including hyperscalers, service providers, global system integrators, and software…View ↗
Do Revenues Turn Into Profits?
Yes. It kept 16 cents of every revenue dollar as net income in FY2025 and turned 18 cents into free cash flow.
10-K for FY2025, filed Feb 24, 2026
10-K for FY2025, filed Feb 24, 2026
$10.9BView ↗
10-K for FY2025, filed Feb 24, 2026
$10.6BView ↗
10-K for FY2025, filed Feb 24, 2026
$12.1BView ↗
How Are They Changing?
10-Q for Q3 FY2026, filed Oct 22, 2026
Open tableView ↗
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Jul 22, 2026
IBM updated its full-year revenue-growth outlook
IBM now expects full-year constant-currency revenue growth of four-to-five percent and still expects free cash flow to increase by about $1 billion year over year.
Sources
8-K, filed Jul 22, 2026
“We are confident in IBM's strategy and portfolio, and in our ability to capture growth opportunities ahead. We fundamentally believe that…View ↗
Growing. Revenue grew 18% in 4 years, from $57.4B in FY2021 to $67.5B in FY2025, about 4% a year.
Who Do They Compete With?
Competes with Alphabet (Google), Amazon, BMC, Broadcom, Microsoft, Oracle, Salesforce, SAP, Splunk, Accenture, Capgemini, Dell Technologies, Hewlett-Packard Enterprise, Intel, NetApp, and Pure Storage
10-K for FY2025, filed Feb 24, 2026The depth, breadth, and innovation of our software offerings, coupled with our global reach, deep industry expertise and research…View ↗
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