Business Segments · Cost

Software — Cost

International Business Machines Software — Cost increased by 16.7% to $1.22B in Q1 2026 compared to the prior quarter. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementSegment
CategoryEfficiency
SignalLower is better
VolatilityStable
First reportedQ1 2025
Last reportedQ1 2026
Rolls up toTotal Cost of Revenue

How to read this metric

An increase relative to revenue may signal rising development costs or inefficiencies, while a decrease suggests improved operational leverage.

Detailed definition

The direct costs associated with developing, maintaining, and delivering software products and services, including perso...

Peer comparison

Commonly reported as 'Cost of Software Revenue' or 'Cost of Goods Sold' for software segments.

Metric ID: ibm_segment_software_cost

Historical Data

2 periods
 Q1 '25Q1 '26
Value$1.04B$1.22B
QoQ Change—+16.7%
YoY Change—+16.7%
Range$1.04B – $1.22B
Avg YoY Growth+16.7%
Median YoY Growth+16.7%

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Frequently Asked Questions

What is International Business Machines's software — cost?
International Business Machines (IBM) reported software — cost of $1.22B in Q1 2026.
What does software — cost mean?
The direct expenses incurred to produce and deliver software products.