Segments (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Segment Reporting [Abstract] |
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| Segment revenue and profit |
The following tables reflect the results of continuing operations of the company’s segments consistent with the management and measurement system utilized within the company. Performance measurement is based on segment profit. The chief operating decision maker (CODM) considers budget-to-actual results of segment profit, both when evaluating the performance of and allocating resources to each of the segments as well as in developing certain compensation recommendations. The CODM reviews segment revenue, cost, and profit information related to each segment, which is included in the tables below, but does not regularly review assets by segment and therefore, such information is not presented. Management System Segment View | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | | | | | For the year ended December 31: | | Software | | Consulting | | Infrastructure | | Financing (1) | | Segments | | 2025 | | | | | | | | | | | | Revenue | | $ | 29,962 | | | $ | 21,055 | | | $ | 15,718 | | | $ | 737 | | | $ | 67,472 | | | Segment cost | | 4,951 | | | 15,134 | | | 6,502 | | | 403 | | | 26,990 | | Other expense and (income) (2) | | 15,091 | | | 3,457 | | | 5,757 | | | (187) | | | 24,118 | | | Segment profit | | 9,920 | | | 2,464 | | | 3,458 | | | 521 | | | 16,364 | | | Revenue year-to-year change | | 10.6 | % | | 1.8 | % | | 12.1 | % | | 3.3 | % | | 7.9 | % | | Segment profit year-to-year change | | 14.2 | % | | 20.0 | % | | 41.2 | % | | 49.6 | % | | 20.9 | % | | Segment profit margin | | 33.1 | % | | 11.7 | % | | 22.0 | % | | 70.7 | % | | 24.3 | % | | 2024 | | | | | | | | | | | | Revenue | | $ | 27,085 | | | $ | 20,692 | | | $ | 14,020 | | | $ | 713 | | | $ | 62,510 | | | Segment cost | | 4,428 | | | 15,103 | | | 6,201 | | | 372 | | | 26,103 | | Other expense and (income) (2) | | 13,974 | | | 3,535 | | | 5,369 | | | (6) | | | 22,872 | | | Segment profit | | 8,684 | | | 2,054 | | | 2,450 | | | 348 | | | 13,535 | | | Revenue year-to-year change | | 8.3 | % | | (0.9) | % | | (3.9) | % | | (3.7) | % | | 2.1 | % | | Segment profit year-to-year change | | 15.8 | % | | (3.6) | % | | (13.4) | % | | (6.6) | % | | 5.5 | % | | Segment profit margin | | 32.1 | % | | 9.9 | % | | 17.5 | % | | 48.8 | % | | 21.7 | % | | 2023 | | | | | | | | | | | | Revenue | | $ | 25,011 | | | $ | 20,884 | | | $ | 14,593 | | | $ | 741 | | | $ | 61,229 | | | Segment cost | | 4,289 | | | 15,297 | | | 6,406 | | | 384 | | | 26,376 | | Other expense and (income) (2) | | 13,222 | | | 3,458 | | | 5,359 | | | (16) | | | 22,023 | | | Segment profit | | 7,499 | | | 2,130 | | | 2,828 | | | 373 | | | 12,829 | |
(1)Refer to “Other Reportable Segment Items” section below for additional information on financing interest income and expense. (2)Other expense and (income) by segment primarily includes: Software - SG&A expense, R&D expense Consulting - SG&A expense Infrastructure - R&D expense, SG&A expense, Other expense, IP and custom development income Financing - Intercompany financing net other income which reflects IBM Z product cycle dynamics, SG&A expense
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| Reconciliation of segment revenue and profit to IBM as reported |
| | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | For the year ended December 31: | | 2025 | | 2024 | | 2023 | | Revenue | | | | | | | | Total reportable segments | | $ | 67,472 | | | $ | 62,510 | | | $ | 61,229 | | | Other—divested businesses | | (2) | | | 35 | | | 397 | | Other revenue (1) | | 65 | | | 207 | | | 235 | | | Total revenue | | $ | 67,535 | | | $ | 62,753 | | | $ | 61,860 | |
| | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | For the year ended December 31: | | 2025 | | 2024 | | 2023 | | Pre-tax income from continuing operations | | | | | | | | Total reportable segment profit | | $ | 16,364 | | | $ | 13,535 | | | $ | 12,829 | | | Amortization of acquired intangible assets | | (2,166) | | | (1,830) | | | (1,627) | | | Acquisition-related charges | | (154) | | | (122) | | | (33) | | Non-operating retirement-related (costs)/income (2) | | (65) | | | (3,457) | | | 39 | | Stock-based compensation (3) | | (1,685) | | | (1,311) | | | (1,133) | | | Net interest excluding the Financing segment | | (1,312) | | | (984) | | | (973) | | Workforce rebalancing charges (3) | | (653) | | | (692) | | | (435) | | Other—divested businesses (4) | | (33) | | | 234 | | | 83 | | Unallocated corporate amounts and other (5) | | 31 | | | 425 | | | (59) | | | Total pre-tax income from continuing operations | | $ | 10,328 | | | $ | 5,797 | | | $ | 8,690 | |
(1)Includes reduction in revenue for the estimated residual value less related unearned income on sales-type leases, which reflects the z17 launch in June 2025. Refer to note A, "Significant Accounting Policies," for additional information. (2)2024 includes the impact of pension settlement charges of $3.1 billion. Refer to note U, “Retirement-Related Benefits,” for additional information. (3)Excludes certain acquisition-related charges. (4)2024 includes a gain from the divestiture of The Weather Company assets. Refer to note E, “Acquisitions & Divestitures,” for additional information. (5)2024 includes a gain from the sale of certain QRadar SaaS assets. Refer to note E, “Acquisitions & Divestitures,” for additional information.
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| Assets and other items by segment |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | | | | | For the year ended December 31: | | Software | | Consulting | | Infrastructure | | Financing | | Total
Segments | | 2025 | | | | | | | | | | | | Depreciation/amortization of non-acquired intangibles | | $ | 532 | | | $ | 78 | | | $ | 1,130 | | | $ | 3 | | | $ | 1,743 | | | Interest Income | | — | | | — | | | — | | | 705 | | | 705 | | | Interest Expense | | — | | | — | | | — | | | 365 | | | 365 | | | 2024 | | | | | | | | | | | | Depreciation/amortization of non-acquired intangibles | | $ | 495 | | | $ | 100 | | | $ | 1,103 | | | $ | 9 | | | $ | 1,708 | | | Interest Income | | — | | | — | | | — | | | 681 | | | 681 | | | Interest Expense | | — | | | — | | | — | | | 369 | | | 369 | | | 2023 | | | | | | | | | | | | Depreciation/amortization of non-acquired intangibles | | $ | 510 | | | $ | 109 | | | $ | 1,018 | | | $ | 8 | | | $ | 1,646 | | | Interest Income | | — | | | — | | | — | | | 680 | | | 680 | | | Interest Expense | | — | | | — | | | — | | | 298 | | | 298 | |
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| Geographic information |
The following tables provide information for those countries that are 10 percent or more of the specific category. Revenue (1) | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | For the year ended December 31: | | 2025 | | 2024 | | 2023 | | United States | | $ | 26,892 | | | $ | 25,144 | | | $ | 25,309 | | | | | | | | | | Other countries | | 40,643 | | | 37,609 | | | 36,551 | | | Total revenue | | $ | 67,535 | | | $ | 62,753 | | | $ | 61,860 | |
(1)Revenues are attributed to countries based on the location of the client. Plant and Other Property–Net (1) | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | At December 31: | | 2025 | | 2024 | | 2023 | | United States | | $ | 4,097 | | | $ | 4,009 | | | $ | 3,466 | | | Other countries | | 1,797 | | | 1,717 | | | 2,027 | | | Total | | $ | 5,894 | | | $ | 5,726 | | | $ | 5,492 | |
(1)Excludes rental machines. Operating Right-of-Use Assets–Net | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | At December 31: | | 2025 | | 2024 | | 2023 | | United States | | $ | 1,016 | | | $ | 1,154 | | | $ | 1,249 | | | India | | 428 | | | 365 | | | 218 | | | Japan | | 258 | | | 324 | | | 340 | | | Other countries | | 1,426 | | | 1,355 | | | 1,413 | | | Total | | $ | 3,129 | | | $ | 3,197 | | | $ | 3,220 | |
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| Revenue by classes of similar products or services |
The following table presents external revenue for similar classes of products or services within the company’s reportable segments. Client solutions often include IBM software and systems and other suppliers’ products if the client solution requires it. For each of the segments that include services, SaaS, consulting, education, training and other product-related services are included as services. For each of these segments, software includes product license charges and ongoing subscriptions. | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | For the year ended December 31: | | 2025 | | 2024 | | 2023 | | Software | | | | | | | | Software | | $ | 26,493 | | | $ | 24,055 | | | $ | 22,409 | | | Services | | 3,444 | | | 3,002 | | | 2,562 | | | Systems | | 25 | | | 29 | | | 40 | | | Consulting | | | | | | | | Services | | $ | 20,801 | | | $ | 20,277 | | | $ | 20,515 | | | Software | | 169 | | | 324 | | | 272 | | | Systems | | 85 | | | 91 | | | 98 | | | Infrastructure | | | | | | | | Servers | | $ | 5,410 | | | $ | 3,693 | | | $ | 4,253 | | | Maintenance | | 3,926 | | | 3,951 | | | 4,138 | | | Storage | | 2,371 | | | 2,360 | | | 2,081 | | | Services | | 2,216 | | | 2,262 | | | 2,463 | | | Software | | 1,795 | | | 1,753 | | | 1,658 | | | Financing | | | | | | | | Financing | | $ | 705 | | | $ | 681 | | | $ | 680 | | | Used equipment sales | | 32 | | | 32 | | | 60 | |
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