Income StatementBalance SheetCash FlowSegments
International Business Machines logo

International Business Machines Business Segments

Business, geographic, and product segment breakdowns

International Business Machines generates $68.9B in annual revenue across 4 key segments: Consulting ($20.4B), Financing ($738.0M), Infrastructure ($14.5B), and Software ($25.1B). Based on the Q1 2026 filing.

Consulting (TTM)$20.4BFinancing (TTM)$738.0MInfrastructure (TTM)$14.5BSoftware (TTM)$25.1B
Latest FilingQ1 2026
Report Date2026-04-23
Market Cap$238.58B
P/E Ratio22.19
ROE35.93%

Products & Services

Cost

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Financing—$104.0M———$124.0M

Revenue

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Sales—$7.1B———$8.0B
Services—$7.3B———$7.7B
Financing—$191.0M———$220.0M

Geographic

Additions/(releases)

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Europe/Middle East/Africa—$2.5M$2.5M$2.5M$2.5M-$8.0M
Americas—$2.5M$2.5M$2.5M$2.5M$1.0M
Asia Pacific—$500.0K$500.0K$500.0K$500.0K$0.0

Amortized cost

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Americas————$7.3B$6.8B
Europe/Middle East/Africa————$4.4B$4.0B
Asia Pacific————$1.6B$1.6B

Financing Receivable And Net Investment In Lease Allowance For Credit Losses

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Americas$69.0M———$69.0M$66.0M
Europe/Middle East/Africa$45.0M———$60.0M$51.0M
Asia Pacific$9.0M———$7.0M$7.0M

Financing Receivable And Net Investment In Lease Allowance For Credit Losses Write Offs

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Americas—$4.0M$4.0M$4.0M$4.0M$5.0M
Asia Pacific—$1.3M$1.3M$1.3M$1.3M$0.0
Europe/Middle East/Africa—$250.0K$250.0K$250.0K$250.0K$0.0

Originated Five or More Years before Latest Fiscal Year

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Americas————$49.0M$49.0M
Europe/Middle East/Africa————$41.0M$44.0M
Asia Pacific————$5.0M$20.0M

Originated Four Years before Latest Fiscal Year

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Americas————$73.0M$151.0M
Asia Pacific————$25.0M$112.0M
Europe/Middle East/Africa————$42.0M$72.0M

Originated in Current Fiscal Year

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Americas————$4.0B$646.0M
Asia Pacific————$777.0M$270.0M
Europe/Middle East/Africa————$2.2B$194.0M

Originated in Fiscal Year before Latest Fiscal Year

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Americas————$1.1B$3.4B
Europe/Middle East/Africa————$715.0M$1.9B
Asia Pacific————$330.0M$560.0M

Originated Three Years before Latest Fiscal Year

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Americas————$237.0M$524.0M
Europe/Middle East/Africa————$118.0M$194.0M
Asia Pacific————$126.0M$146.0M

Originated Two Years before Latest Fiscal Year

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Americas————$708.0M$974.0M
Europe/Middle East/Africa————$262.0M$565.0M
Asia Pacific————$177.0M$282.0M

Other

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Europe/Middle East/Africa—$1.5M$1.5M$1.5M$1.5M-$1.0M
Americas—$1.8M$1.8M$1.8M$1.8M$0.0
Asia Pacific—$0.0$0.0$0.0$0.0$0.0

Recoveries

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Americas—$0.0$0.0$0.0$0.0$0.0
Asia Pacific—$0.0$0.0$0.0$0.0$0.0
Europe/Middle East/Africa—$0.0$0.0$0.0$0.0$0.0

Revenue

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Americas—$7.2B———$7.9B
Europe/Middle East/Africa—$4.6B———$5.2B
Asia Pacific—$2.8B———$2.8B

Business Segments

Cost

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Consulting—$3.7B———$3.8B
Infrastructure—$1.4B———$1.4B
Software—$1.0B———$1.2B

Depreciation/amortization of intangibles

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Infrastructure—$266.0M———$278.0M
Software—$121.0M———$134.0M
Consulting—$21.0M———$21.0M
Financing—$1.0M———$1.0M

Foreign Currency Translation and Other Adjustments

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software—$213.8M$213.8M$213.8M$213.8M-$175.0M
Consulting—$54.3M$54.3M$54.3M$54.3M-$36.0M
Infrastructure—$6.5M$6.5M$6.5M$6.5M-$6.0M
Other—$0.0$0.0$0.0$0.0$0.0

Goodwill

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software$47.1B———$53.0B$60.0B
Consulting$9.2B———$10.3B$10.4B
Infrastructure$4.4B———$4.4B$4.4B
Other$0.0———$0.0$0.0

Goodwill Additions

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software—$1.3B$1.3B$1.3B$1.3B$7.1B
Consulting—$227.0M$227.0M$227.0M$227.0M$89.0M
Infrastructure—$0.0$0.0$0.0$0.0$0.0
Other—$0.0$0.0$0.0$0.0$0.0

Goodwill, Written off Related to Sale of Business Unit

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Consulting—$0.0$0.0$0.0$0.0$0.0
Infrastructure—$0.0$0.0$0.0$0.0$0.0
Other—$0.0$0.0$0.0$0.0$0.0
Software—$0.0$0.0$0.0$0.0$0.0

Interest Expense

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Financing—$90.0M———$111.0M
Consulting—$0.0———$0.0
Infrastructure—$0.0———$0.0
Software—$0.0———$0.0

Interest Income

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Financing—$176.0M———$205.0M
Consulting—$0.0———$0.0
Infrastructure—$0.0———$0.0
Software—$0.0———$0.0

Other expense and (income)

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software—$3.4B———$3.7B
Infrastructure—$1.3B———$1.4B
Consulting—$823.0M———$891.0M
Financing—$19.0M———-$23.0M

Pre-tax income margin (as a percent)

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Financing—35.8%———53.8%
Software—29.1%———29.8%
Infrastructure—8.6%———15.8%
Consulting—11.0%———10.6%

Pre-tax income year-to-year change (as a percent)

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Infrastructure—————111.7%
Financing—————72.6%
Software—————13.7%
Consulting—————-0.1%

Purchase Price Adjustments

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Consulting—$2.5M$2.5M$2.5M$2.5M-$18.0M
Infrastructure—$0.0$0.0$0.0$0.0$1.0M
Software—-$2.0M-$2.0M-$2.0M-$2.0M$1.0M
Other—$0.0$0.0$0.0$0.0$0.0

Revenue

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software—$6.3B———$7.1B
Consulting—$5.1B———$5.3B
Infrastructure—$2.9B———$3.3B
Financing—$191.0M———$220.0M

Revenue year-to-year change (as a percent)

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Infrastructure—————15.3%
Financing—————14.8%
Software—————11.3%
Consulting—————4.0%

Segment profit

SegmentQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Software—$1.8B———$2.1B
Consulting—$558.0M———$558.0M
Infrastructure—$248.0M———$524.0M
Financing—$69.0M———$118.0M