Business Segments · Pre-tax income margin (as a percent)
Software — Pre-tax income margin (as a percent)
International Business Machines Software — Pre-tax income margin (as a percent) increased by 2.4% to 29.8% in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 2.4%, from 29.1% to 29.8%. This is a positive signal — higher values indicate stronger performance for this metric.
Analysis
StatementSegment
CategoryProfitability
SignalHigher is better
VolatilityStable
First reportedQ1 2023
Last reportedQ1 2026Apr 23, 2026
How to read this metric
A higher margin indicates strong pricing power, efficient cost management, or high-margin software product mix.
Detailed definition
The ratio of pre-tax income to revenue for the software segment, expressed as a percentage. This metric indicates the se...
Peer comparison
Comparable to 'Segment Operating Margin' or 'Segment Pre-tax Margin' in peer financial reporting.
Metric ID:
ibm_segment_software_pre_tax_income_margin_as_a_percentHistorical Data
8 periods
| Q1 '23 | Q2 '23 | Q3 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q1 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|
| Value | 24.7% | 27.8% | 29% | 25.4% | 31.3% | 30.2% | 29.1% | 29.8% |
| QoQ Change | — | +12.6% | +4.3% | -12.4% | +23.2% | -3.5% | -3.6% | +2.4% |
| YoY Change | — | — | — | +2.8% | +12.6% | +4.1% | +14.6% | +2.4% |
Range24.7% – 31.3%
CAGR+11.3%
Avg YoY Growth+7.3%
Median YoY Growth+4.1%
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Frequently Asked Questions
- What is International Business Machines's software — pre-tax income margin (as a percent)?
- International Business Machines (IBM) reported software — pre-tax income margin (as a percent) of 29.8% in Q1 2026.
- How has International Business Machines's software — pre-tax income margin (as a percent) changed year-over-year?
- International Business Machines's software — pre-tax income margin (as a percent) increased by 2.4% year-over-year, from 29.1% to 29.8%.
- What does software — pre-tax income margin (as a percent) mean?
- The percentage of software revenue that remains as profit before taxes are paid.