What does software — segment profit mean?

The operating income generated by the software segment after deducting direct costs and allocated operating expenses. It serves as the primary measure of the segment's contribution to the company's overall bottom line.

International Business Machines (IBM) Software — Segment profit

Screener

Other segment segments

Consulting

$558M0.0%

Infrastructure

$524M+111%

Financing

$69M—

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COHRIndustrial — Segment profit

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SJMOther — Segment profit

$72M+16.9%

HCSGDietary — Segment profit

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APPSAGP — Segment profit

$45.07M+50.1%

Other financials

Income statement

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Revenue$15.9B+9.5%

Gross profit$9.9B-0.7%

Net income$1.2B+15.3%

EPS (diluted)$2.27-1.7%

Balance sheet

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Cash & equivalents$10.9B-2.7%

Total debt$77.4B+4.9%

Total equity$33.0B+22.7%

Total assets$156.23B+7.3%

Cash flow

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Operating cash flow$2.6B+52.7%

CapEx-$975.0M-564%

Free cash flow$1.6B+8.8%

Valuation

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Market cap$222.27B-5.4%

Enterprise value$288.76B+0.3%

Profitability

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Gross margin58.4%+1.3pp

Net margin15.6%+6.9pp

FCF margin18.7%-1.3pp

Returns & leverage

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Return on equity35.9%+14.1pp

Debt / equity2.3×-0.4×

Current ratio0.8×-0.2×

Where this comes from

Reported directly by International Business Machines in its filing.

Tagged under the XBRL concept us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest.

The source filing: International Business Machines’s 10-Q, filed April 23, 2026.

Filed: Apr 23, 2026, 6:22 AM EDT
Fiscal quarter: Q1 FY2026
Calendar quarter: Q1 2026
Accession: 0000051143-26-000038

($ in millions) / For the three months ended March 31, 2026:	Software	Consulting	Infrastructure	Financing	Total Segments
Revenue	$7,052	$5,272	$3,326	$220	$15,870
Segment cost	1,216	3,822	1,435	124	6,598
Other expenses and (income) (1)	3,737	891	1,366	(23)	5,971
Segment profit	$2,099	$558	$524	$118	$3,300
Revenue year-to-year change	11.3%	4.0%	15.3%	14.8%	9.6%
Segment profit year-to-year change	13.7%	(0.1)%	111.7%	72.6%	21.3%
Segment profit margin	29.8%	10.6%	15.8%	53.8%	20.8%
For the three months ended March 31, 2025:

Item 1. Consolidated Financial Statements (Unaudited)

FAQ

What is International Business Machines's software — segment profit?: International Business Machines (IBM) reported software — segment profit of $2.1B in Q1 2026.
How has International Business Machines's software — segment profit changed year-over-year?: International Business Machines's software — segment profit increased by 13.6% year-over-year, from $1.85B to $2.1B.
What does software — segment profit mean?: The operating income generated by the software segment after deducting direct costs and allocated operating expenses. It serves as the primary measure of the segment's contribution to the company's overall bottom line.