v3.25.4
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of disaggregation of revenue
The following tables provide details of revenue by major products/service offerings and revenue by geography.
Revenue by Major Products/Service Offerings
($ in millions)
For the year ended December 31:2025
2024 (1)
2023 (1)
Hybrid Cloud$7,327 $6,490 $5,827 
Automation7,733 6,558 6,008 
Data6,299 5,629 5,461 
Transaction Processing8,603 8,408 7,714 
Total Software$29,962 $27,085 $25,011 
Strategy and Technology$11,537 $11,488 $11,430 
Intelligent Operations9,518 9,204 9,455 
Total Consulting$21,055 $20,692 $20,884 
Hybrid Infrastructure$10,618 $8,913 $9,215 
Infrastructure Support5,100 5,107 5,377 
Total Infrastructure$15,718 $14,020 $14,593 
Financing (2)
$737 $713 $741 
Other (3)
$63 $243 $632 
Total Revenue$67,535 $62,753 $61,860 
(1)Recast to reflect January 2025 changes to the reported revenue categories within Software and Consulting segments.
(2)Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers.
(3)Includes reductions in revenue for estimated residual value less related unearned income on sales-type leases, which reflects the new z17 launch in June 2025. Refer to note A, "Significant Accounting Policies," for additional information. 2024 and 2023 include The Weather Company divested business which closed on January 31, 2024. Refer to note E, "Acquisitions & Divestitures," for additional information.
Schedule of disaggregation of revenue by geography
($ in millions)
For the year ended December 31:202520242023
Americas$33,342 $31,266 $31,666 
Europe/Middle East/Africa22,189 19,429 18,492 
Asia Pacific12,004 12,058 11,702 
Total$67,535 $62,753 $61,860 
Schedule of reconciliation of contract balances
The following table provides information about notes and accounts receivable—trade, contract assets and deferred income balances.
($ in millions)
At December 31:20252024
Notes and accounts receivable—trade (net of allowances of $99 in 2025 and $114 in 2024)
$8,112 $6,804 
Contract assets (1)
482 433 
Deferred income (current)16,101 13,907 
Deferred income (noncurrent)4,271 3,622 
(1)Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
Schedule of notes and accounts receivable - trade allowance for credit losses
The following table provides roll forwards of the notes and accounts receivable—trade allowance for expected credit losses for the years ended December 31, 2025 and 2024.
($ in millions)
January 1, 2025Additions/(Releases)
Write-offs (1)
Foreign currency and OtherDecember 31, 2025
$114$5$(31)$10$99
January 1, 2024Additions/(Releases)
Write-offs (1)
Foreign currency and OtherDecember 31, 2024
$192$(2)$(78)$2$114
(1)The majority of the write-offs during the period related to receivables which had been previously reserved.
Schedule of deferred contract costs
($ in millions)
At December 31:20252024
Capitalized costs to obtain a contract$966 $794 
Deferred costs to fulfill a contract
Deferred setup costs294 326 
Other deferred fulfillment costs649 628 
Total deferred costs (1)
$1,909 $1,748 
(1)Of the total deferred costs, $1,084 million was current and $825 million was noncurrent at December 31, 2025 and $959 million was current and $788 million was noncurrent at December 31, 2024.