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Segments (Tables) | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Revenue and pre-tax income by segment | The following tables reflect the results of continuing operations of the company’s segments consistent with the management and measurement system utilized within the company. Performance measurement is based on segment profit. The chief operating decision maker (CODM) considers budget-to-actual results of segment profit, both when evaluating the performance of and allocating resources to each of the segments as well as in developing certain compensation recommendations. The CODM reviews segment revenue, cost and profit information related to each segment, which is included in the tables below, but does not regularly review total assets by segment and therefore, such information is not presented. Management System Segment View
(Dollars in millions) |  | Software |  | Consulting |  | Infrastructure |  | Financing |  | Total Segments
For the three months ended March 31, 2025: |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 6,336 |  |  | $ | 5,068 |  |  | $ | 2,886 |  |  | $ | 191 |  |  | $ | 14,480 |
Segment cost |  | 1,042 |  |  | 3,686 |  |  | 1,363 |  |  | 104 |  |  | 6,195 |
Other expenses and (income) (1) |  | 3,447 |  |  | 823 |  |  | 1,275 |  |  | 19 |  |  | 5,564 |
Segment profit |  | $ | 1,847 |  |  | $ | 558 |  |  | $ | 248 |  |  | $ | 69 |  |  | $ | 2,721 |
Revenue year-to-year change |  | 7.4 | % |  | (2.3) | % |  | (6.2) | % |  | (0.8) | % |  | 0.9 | %
Segment profit year-to-year change |  | 23.2 | % |  | 31.6 | % |  | (20.3) | % |  | (25.5) | % |  | 17.0 | %
Segment profit margin |  | 29.1 | % |  | 11.0 | % |  | 8.6 | % |  | 35.8 | % |  | 18.8 | %
For the three months ended March 31, 2024: |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 5,899 |  |  | $ | 5,186 |  |  | $ | 3,076 |  |  | $ | 193 |  |  | $ | 14,354 |
Segment cost |  | 1,039 |  |  | 3,872 |  |  | 1,410 |  |  | 99 |  |  | 6,421 |
Other expenses and (income) (1) |  | 3,360 |  |  | 889 |  |  | 1,355 |  |  | 2 |  |  | 5,606 |
Segment profit |  | $ | 1,500 |  |  | $ | 424 |  |  | $ | 311 |  |  | $ | 92 |  |  | $ | 2,327 |
Segment profit margin |  | 25.4 | % |  | 8.2 | % |  | 10.1 | % |  | 47.7 | % |  | 16.2 | %
(1)Other expenses and (income) by segment primarily includes: Software – Selling, general and administrative (SG&A) expense, Research and development (R&D) expense Consulting – SG&A expense Infrastructure – R&D expense, SG&A expense, Intellectual property and custom development income Financing – SG&A expense, Intercompany financing net other income
Reconciliation of segment revenue and profit to IBM as reported |
(Dollars in millions) |  |  |  |
For the three months ended March 31: |  | 2025 |  | 2024
Revenue: |  |  |  |
Total reportable segments |  | $ | 14,480 |  |  | $ | 14,354 |
Other‒divested businesses |  | 0 |  |  | 35 |
Other revenue |  | 61 |  |  | 73 |
Total revenue from continuing operations |  | $ | 14,541 |  |  | $ | 14,462 |
Pre-tax income from continuing operations: |  |  |  |
Total reportable segment profit |  | $ | 2,721 |  |  | $ | 2,327 |
Amortization of acquired intangible assets |  | (495) |  |  | (428) |
Acquisition-related charges |  | (63) |  |  | (60) |
Non-operating retirement-related (costs)/income |  | (23) |  |  | (96) |
Stock-based compensation |  | (401) |  |  | (320) |
Net interest excluding the Financing segment |  | (265) |  |  | (223) |
Workforce rebalancing charges |  | (316) |  |  | (374) |
Other‒divested businesses (1) |  | (7) |  |  | 239 |
Unallocated corporate amounts and other |  | 5 |  |  | 9 |
Total pre-tax income from continuing operations |  | $ | 1,158 |  |  | $ | 1,074 |
(1)2024 includes a gain from the divestiture of The Weather Company assets.
Other reportable segment items |
(Dollars in millions) |  | Software |  | Consulting |  | Infrastructure |  | Financing |  | Total Segments
For the three months ended March 31, 2025: |  |  |  |  |  |  |  |  |  |
Depreciation (1) /amortization of non-acquired intangibles |  | $ | 121 |  |  | $ | 21 |  |  | $ | 266 |  |  | $ | 1 |  |  | $ | 409 |
Interest Income |  | — |  |  | — |  |  | — |  |  | 176 |  |  | 176 |
Interest Expense |  | — |  |  | — |  |  | — |  |  | 90 |  |  | 90 |
For the three months ended March 31, 2024: |  |  |  |  |  |  |  |  |  |
Depreciation (1) /amortization of non-acquired intangibles |  | $ | 128 |  |  | $ | 27 |  |  | $ | 267 |  |  | $ | 2 |  |  | $ | 424 |
Interest Income |  | — |  |  | — |  |  | — |  |  | 180 |  |  | 180 |
Interest Expense |  | — |  |  | — |  |  | — |  |  | 102 |  |  | 102 |
(1)Where several segments share the use of leased or owned assets, a landlord's ownership of these assets is assigned to one segment. While depreciation expense is allocated to each user segment, it is presented consistently with the landlord's ownership; therefore, there will not be a precise correlation between segment profit and the segment depreciation reported above.

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- Definition Tabular disclosure of the reconciliation of total revenues and profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References No definition available. + Details
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- Definition This table represents the disclosure of the assets, depreciation/amortization of intangibles, capital expenditures/investments in intangibles, interest income and interest expense for each reportable segment, along with a reconciliation of assets from reportable segments to total consolidated assets. + References No definition available. + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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