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International Business Machines's Business Segments
International Business Machines's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Segment Data As of Q2 FY2026
Reportable Segments
4
Largest Segment
Software
Total Revenue
$ 17,162
Regions Reported
3
Revenue Share by Reportable Segment - Q2 FY2026
- Software45.2%
- Consulting31%
- Infrastructure22.3%
- Financing1.1%
Revenue by Reportable Segment - Q2 FY2026
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Software | $ 7,761 | 45.2% |
| Consulting | $ 5,327 | 31% |
| Infrastructure | $ 3,835 | 22.3% |
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Revenue Share by Region - Q2 FY2026
- Americas49%
- EMEA32.8%
- Asia Pacific18.1%
Revenue by Geographic Region - Q2 FY2026
| Region | Revenue (Millions) | % of Total |
|---|---|---|
| Americas | $ 8,417 | 49% |
| EMEA | $ 5,633 | 32.8% |
| Asia Pacific | $ 3,112 | 18.1% |
Revenue by Product & Service Category - Q2 FY2026
- Product52.7%
- Technology Service46.2%
- Strategy and Technology17.1%
- Hybrid Infrastructure15%
- Intelligent Operations13.9%
- Transaction Processing11.8%
- Hybrid Cloud11.6%
- Automation11.4%
- Data10.4%
- Infrastructure Support7.4%
- Financial Service1.1%
Revenue by Product & Service Category - Q2 FY2026
| Category | Revenue (Millions) | % of Total |
|---|---|---|
| Product | $ 9,049 | 52.7% |
| Technology Service | $ 7,927 | 46.2% |
| Strategy and Technology | $ 2,933 | 17.1% |
Product and service categories are a supplemental disclosure and are not required to sum to consolidated revenue or to the reportable segments above.
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Description of International Business Machines
International Business Machines Corporation (IBM) is a multinational technology and consulting corporation with its roots tracing back to its founding in 1911. Established as the Computing-Tabulating-Recording Co. (C-T-R), it emerged from the merger of several companies: the Computing Scale Co. of America, the Tabulating Machine Co. and The International Time Recording Co. of New York. These initial operations laid the groundwork for a company focused on data processing and recording mechanisms.
In 1924, C-T-R rebranded itself as International Business Machines Corporation, signaling a broader purpose that encompassed global business practices and innovations. This name change marked IBMs transformation into a major player in the burgeoning field of information technology and management solutions, positioning itself as a leader at the intersection of business needs and technological advancements.
Over the decades, IBM has consistently evolved its business model to adapt to changing technological landscapes. It has pioneered numerous advancements in computing hardware, software, and services. The company is renowned for its contributions to the development of mainframe computers, personal computers, and enterprise solutions. IBMs commitment to research and innovation has led to the creation of many proprietary technologies, including the IBM System/360, the IBM PC, and various software solutions that have become staples in the business ecosystem.
Today, IBM stands as one of the largest information technology companies globally, with a diverse portfolio that includes cloud computing, artificial intelligence, cognitive solutions, data analytics, and cybersecurity. The companys flagship product, IBM Cloud, offers comprehensive cloud services that empower businesses to transform their operations and innovate rapidly.
The company has also made significant strides in artificial intelligence, notably with its Watson platform, which gained fame for its success on the quiz show Jeopardy! Watson exemplifies IBM’s foray into machine learning and natural language processing, showcasing the potential of AI in various sectors, including healthcare, finance, and customer service.
IBMs commitment to consulting services is another cornerstone of its operations. With a vast network of experts, IBM Consulting works closely with organizations to address complex business challenges through integrated technology solutions. This consulting arm has helped establish IBM not only as a technology provider but also as a trusted partner in business strategy and transformation.
In terms of research, IBM is home to one of the largest and most renowned research organizations in the world. The IBM Research division has made significant contributions to various fields, including quantum computing, blockchain technology, and materials science. The companys innovations are often propelled by its robust patent portfolio, reflecting its leadership in technological development.
IBM has also placed a strong emphasis on sustainability and corporate responsibility. The company is dedicated to promoting environmental stewardship, diversity, and inclusion within its workforce. IBM has made pledges to reduce carbon emissions, invest in green technologies, and engage in community development initiatives.
In summary, IBM has a long and storied history characterized by innovation, leadership in technology, and a commitment to business solutions across various sectors. As it continues to navigate and lead in a rapidly changing digital landscape, IBM remains focused on delivering value to its clients worldwide while pushing the boundaries of what technology can achieve.
In 1924, C-T-R rebranded itself as International Business Machines Corporation, signaling a broader purpose that encompassed global business practices and innovations. This name change marked IBMs transformation into a major player in the burgeoning field of information technology and management solutions, positioning itself as a leader at the intersection of business needs and technological advancements.
Over the decades, IBM has consistently evolved its business model to adapt to changing technological landscapes. It has pioneered numerous advancements in computing hardware, software, and services. The company is renowned for its contributions to the development of mainframe computers, personal computers, and enterprise solutions. IBMs commitment to research and innovation has led to the creation of many proprietary technologies, including the IBM System/360, the IBM PC, and various software solutions that have become staples in the business ecosystem.
Today, IBM stands as one of the largest information technology companies globally, with a diverse portfolio that includes cloud computing, artificial intelligence, cognitive solutions, data analytics, and cybersecurity. The companys flagship product, IBM Cloud, offers comprehensive cloud services that empower businesses to transform their operations and innovate rapidly.
The company has also made significant strides in artificial intelligence, notably with its Watson platform, which gained fame for its success on the quiz show Jeopardy! Watson exemplifies IBM’s foray into machine learning and natural language processing, showcasing the potential of AI in various sectors, including healthcare, finance, and customer service.
IBMs commitment to consulting services is another cornerstone of its operations. With a vast network of experts, IBM Consulting works closely with organizations to address complex business challenges through integrated technology solutions. This consulting arm has helped establish IBM not only as a technology provider but also as a trusted partner in business strategy and transformation.
In terms of research, IBM is home to one of the largest and most renowned research organizations in the world. The IBM Research division has made significant contributions to various fields, including quantum computing, blockchain technology, and materials science. The companys innovations are often propelled by its robust patent portfolio, reflecting its leadership in technological development.
IBM has also placed a strong emphasis on sustainability and corporate responsibility. The company is dedicated to promoting environmental stewardship, diversity, and inclusion within its workforce. IBM has made pledges to reduce carbon emissions, invest in green technologies, and engage in community development initiatives.
In summary, IBM has a long and storied history characterized by innovation, leadership in technology, and a commitment to business solutions across various sectors. As it continues to navigate and lead in a rapidly changing digital landscape, IBM remains focused on delivering value to its clients worldwide while pushing the boundaries of what technology can achieve.
International Business Machines Corporation (IBM) is a multinational technology and consulting corporation that has evolved significantly over its more than a century-long history. As of now, IBM operates through five major business segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. Each of these segments represents a diverse array of products, solutions, and services designed to cater to various client needs across industries. Below is an extensive overview of each segment.
1. Global Technology Services (GTS)
Global Technology Services constitutes a critical aspect of IBM’s overall strategy, focusing on IT infrastructure services and business insights that support clients operational efficiency and digital transformation initiatives. GTS is characterized by a predominant annuity-based revenue model, primarily from outsourcing and maintenance contracts.
Core Offerings:
- Strategic Outsourcing Services: IBM provides IT outsourcing services tailored to transform client infrastructures, enhancing quality, flexibility, risk management, and financial performance. Leveraging cloud computing, analytics, and virtualization, these services are imbued with IBM’s long-established service management expertise.
- Global Process Services: Offering a variety of standardized and transformational solutions, this service focuses on optimizing clients’ business processes, applications, and infrastructure to yield enhanced business performance through strategic change.
- Integrated Technology Services: This comprises project-based and managed services aimed at improving IT environments for clients by fostering efficiency and reduction of operational costs. A robust framework of best practices ensures predictable delivery and adherence to security and compliance standards.
- Cloud Services: IBM offers a range of cloud solutions, including private cloud development, customized managed clouds, and hybrid cloud environments that seamlessly integrate public and private workloads.
- Technology Support Services: Providing maintenance and solution support, these services are designed to enhance the availability and performance of clients’ IT infrastructures.
Global Business Services (GBS)
GBS is dedicated to delivering predictable business outcomes through consulting and application management services. Its strategic focus is on leveraging specialist industry knowledge and business process expertise to drive innovations in the realm of big data, mobile computing, and social business.
Core Offerings:
- Consulting Services: IBMs consultation revolves around Strategy and Transformation, Application Innovation, Enterprise Applications, and Smarter Analytics. The consulting team collaborates with clients to realize their objectives within Front Office Digitization and integrating global business processes.
- Application Management Services: This includes management, maintenance, and support for packaged, custom, and legacy applications. GBS employs advanced methodologies, including application testing and modernization, to ensure optimized application performance.
Software
The Software segment is primarily composed of middleware and operating systems, enabling organizations to enhance integration across systems and applications. IBM’s software solutions are rooted in open standards, allowing for better integration among diverse platforms.
Core Offerings:
- WebSphere Software: A platform that allows organizations to run and manage high-performance applications while providing flexibility and responsiveness to market changes.
- Information Management Software: Offering tools for data integration, management, and analysis, this segment facilitates clients’ access to actionable insights through advanced analytics capabilities.
- Watson Solutions: An innovative cognitive computing platform that processes vast amounts of data and interacts in natural language, enabling enterprises to make informed decisions swiftly.
- Tivoli Software: This suite focuses on optimizing visibility and control over technology assets, providing tools for better security and operational efficiency.
- Social Workforce Solutions: This software promotes effective collaboration among workforce members, enhancing productivity through various communication and networking tools.
- Rational Software: Focused on software development, Rational supports the DevOps framework and enhances product development.
- Mobile Solutions: Covering a range of mobile offerings, IBM provides tools for application development, mobile security, and device management, aiming to elevate user engagement and workforce productivity.
Systems and Technology (STG)
STG is responsible for providing advanced computing solutions that bolster storage and processing capabilities. A significant portion of STGs business relies on a partner distribution model.
Core Offerings:
- Systems: IBMs diverse lineup of systems, including System z (mainframe), Power Systems, and System x, serve as the backbone for data centers and are optimized for a multitude of business applications.
- Storage Solutions: These products cater to the management of large volumes of data while providing solutions for optimization, security, retention, and archiving.
- Microelectronics: This division develops semiconductor technology for both internal use and external clients, aiding in innovation within the tech industry.
Global Financing
The Global Financing segment assists clients in acquiring IBM systems, software, and services through various financing solutions. This division is integral to IBMs operations, mitigating risks typically associated with asset procurement.
Core Offerings:
- Client Financing: Providing lease and loan financing options tailored for end users, supporting long-term service contracts and factoring accounts receivable for effective cash management.
- Commercial Financing: Short-term financing solutions for dealers and remarketers of IT products, facilitating efficient cash flow in the supply chain.
- Remanufacturing and Remarketing: Involves refurbishing leased equipment at the conclusion of contracts and reselling or leasing these assets to new clients, supporting sustainability and resource optimization.
In conclusion, IBM operates across diverse sectors, embedding technology in clients operational frameworks for enhanced efficiency and innovation. Each segment of the company offers unique products and services that cater to the evolving demands of the global marketplace, cementing IBMs position as a leader in the technology landscape.
1. Global Technology Services (GTS)
Global Technology Services constitutes a critical aspect of IBM’s overall strategy, focusing on IT infrastructure services and business insights that support clients operational efficiency and digital transformation initiatives. GTS is characterized by a predominant annuity-based revenue model, primarily from outsourcing and maintenance contracts.
Core Offerings:
- Strategic Outsourcing Services: IBM provides IT outsourcing services tailored to transform client infrastructures, enhancing quality, flexibility, risk management, and financial performance. Leveraging cloud computing, analytics, and virtualization, these services are imbued with IBM’s long-established service management expertise.
- Global Process Services: Offering a variety of standardized and transformational solutions, this service focuses on optimizing clients’ business processes, applications, and infrastructure to yield enhanced business performance through strategic change.
- Integrated Technology Services: This comprises project-based and managed services aimed at improving IT environments for clients by fostering efficiency and reduction of operational costs. A robust framework of best practices ensures predictable delivery and adherence to security and compliance standards.
- Cloud Services: IBM offers a range of cloud solutions, including private cloud development, customized managed clouds, and hybrid cloud environments that seamlessly integrate public and private workloads.
- Technology Support Services: Providing maintenance and solution support, these services are designed to enhance the availability and performance of clients’ IT infrastructures.
Global Business Services (GBS)
GBS is dedicated to delivering predictable business outcomes through consulting and application management services. Its strategic focus is on leveraging specialist industry knowledge and business process expertise to drive innovations in the realm of big data, mobile computing, and social business.
Core Offerings:
- Consulting Services: IBMs consultation revolves around Strategy and Transformation, Application Innovation, Enterprise Applications, and Smarter Analytics. The consulting team collaborates with clients to realize their objectives within Front Office Digitization and integrating global business processes.
- Application Management Services: This includes management, maintenance, and support for packaged, custom, and legacy applications. GBS employs advanced methodologies, including application testing and modernization, to ensure optimized application performance.
Software
The Software segment is primarily composed of middleware and operating systems, enabling organizations to enhance integration across systems and applications. IBM’s software solutions are rooted in open standards, allowing for better integration among diverse platforms.
Core Offerings:
- WebSphere Software: A platform that allows organizations to run and manage high-performance applications while providing flexibility and responsiveness to market changes.
- Information Management Software: Offering tools for data integration, management, and analysis, this segment facilitates clients’ access to actionable insights through advanced analytics capabilities.
- Watson Solutions: An innovative cognitive computing platform that processes vast amounts of data and interacts in natural language, enabling enterprises to make informed decisions swiftly.
- Tivoli Software: This suite focuses on optimizing visibility and control over technology assets, providing tools for better security and operational efficiency.
- Social Workforce Solutions: This software promotes effective collaboration among workforce members, enhancing productivity through various communication and networking tools.
- Rational Software: Focused on software development, Rational supports the DevOps framework and enhances product development.
- Mobile Solutions: Covering a range of mobile offerings, IBM provides tools for application development, mobile security, and device management, aiming to elevate user engagement and workforce productivity.
Systems and Technology (STG)
STG is responsible for providing advanced computing solutions that bolster storage and processing capabilities. A significant portion of STGs business relies on a partner distribution model.
Core Offerings:
- Systems: IBMs diverse lineup of systems, including System z (mainframe), Power Systems, and System x, serve as the backbone for data centers and are optimized for a multitude of business applications.
- Storage Solutions: These products cater to the management of large volumes of data while providing solutions for optimization, security, retention, and archiving.
- Microelectronics: This division develops semiconductor technology for both internal use and external clients, aiding in innovation within the tech industry.
Global Financing
The Global Financing segment assists clients in acquiring IBM systems, software, and services through various financing solutions. This division is integral to IBMs operations, mitigating risks typically associated with asset procurement.
Core Offerings:
- Client Financing: Providing lease and loan financing options tailored for end users, supporting long-term service contracts and factoring accounts receivable for effective cash management.
- Commercial Financing: Short-term financing solutions for dealers and remarketers of IT products, facilitating efficient cash flow in the supply chain.
- Remanufacturing and Remarketing: Involves refurbishing leased equipment at the conclusion of contracts and reselling or leasing these assets to new clients, supporting sustainability and resource optimization.
In conclusion, IBM operates across diverse sectors, embedding technology in clients operational frameworks for enhanced efficiency and innovation. Each segment of the company offers unique products and services that cater to the evolving demands of the global marketplace, cementing IBMs position as a leader in the technology landscape.