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v3.25.2

Revenue Recognition (Tables) | 6 Months Ended
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Jun. 30, 2025
Revenue from Contract with Customer [Abstract] |
Schedule of disaggregation of revenue | The following tables provide details of revenue by major products/service offerings and revenue by geography. Revenue by Major Products/Service Offerings
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(Dollars in millions) |  | 2025 |  | 2024 (1) |  | 2025 |  | 2024 (1)
Hybrid Cloud |  | $ | 1,796 |  |  | $ | 1,547 |  |  | $ | 3,483 |  |  | $ | 3,057 |
Automation |  | 1,883 |  |  | 1,620 |  |  | 3,467 |  |  | 3,012 |
Data |  | 1,499 |  |  | 1,378 |  |  | 2,736 |  |  | 2,550 |
Transaction Processing |  | 2,208 |  |  | 2,194 |  |  | 4,037 |  |  | 4,019 |
Total Software |  | $ | 7,387 |  |  | $ | 6,739 |  |  | $ | 13,722 |  |  | $ | 12,637 |
Strategy and Technology |  | 2,920 |  |  | 2,895 |  |  | 5,702 |  |  | 5,757 |
Intelligent Operations |  | 2,395 |  |  | 2,284 |  |  | 4,680 |  |  | 4,608 |
Total Consulting |  | $ | 5,314 |  |  | $ | 5,179 |  |  | $ | 10,382 |  |  | $ | 10,365 |
Hybrid Infrastructure |  | 2,866 |  |  | 2,360 |  |  | 4,512 |  |  | 4,163 |
Infrastructure Support |  | 1,275 |  |  | 1,285 |  |  | 2,515 |  |  | 2,558 |
Total Infrastructure |  | $ | 4,142 |  |  | $ | 3,645 |  |  | $ | 7,027 |  |  | $ | 6,721 |
Financing (2) |  | 166 |  |  | 169 |  |  | 357 |  |  | 362 |
Other (3) |  | (31) |  |  | 38 |  |  | 30 |  |  | 146 |
Total revenue |  | $ | 16,977 |  |  | $ | 15,770 |  |  | $ | 31,519 |  |  | $ | 30,231 |
(1)Prior-year amounts recast to reflect January 2025 changes to the reported revenue categories within Software and Consulting segments. (2)Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers. (3)Includes reductions in revenue for estimated residual value less related unearned income on sales-type leases, which reflects the new z17 launch in June 2025. Refer to note A, "Significant Accounting Policies," in the company's 2024 Annual Report for additional information.
Schedule of disaggregation of revenue by geography |
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(Dollars in millions) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Americas |  | $ | 8,462 |  |  | $ | 7,979 |  |  | $ | 15,668 |  |  | $ | 15,275 |
Europe/Middle East/Africa |  | 5,413 |  |  | 4,722 |  |  | 9,965 |  |  | 9,035 |
Asia Pacific |  | 3,103 |  |  | 3,069 |  |  | 5,886 |  |  | 5,922 |
Total |  | $ | 16,977 |  |  | $ | 15,770 |  |  | $ | 31,519 |  |  | $ | 30,231 |
Schedule of reconciliation of contract balances | The following table provides information about notes and accounts receivable — trade, contract assets and deferred income balances.
(Dollars in millions) |  | At June 30, 2025 |  | At December 31, 2024
Notes and accounts receivable — trade (net of allowances of $109 in 2025 and $114 in 2024) |  | $ | 5,974 |  |  | $ | 6,804 |
Contract assets (1) |  | $ | 495 |  |  | $ | 433 |
Deferred income (current) |  | $ | 15,022 |  |  | $ | 13,907 |
Deferred income (noncurrent) |  | $ | 3,913 |  |  | $ | 3,622 |
(1)Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
Schedule of notes and accounts receivable - trade allowance for credit losses | The following table provides roll forwards of the notes and accounts receivable–trade allowance for expected credit losses for the six months ended June 30, 2025 and the year ended December 31, 2024.
(Dollars in millions) |  |  |  |  |  |  |  |
January 1, 2025 |  | Additions / (Releases) |  | Write-offs (1) |  | Foreign currency and other |  | June 30, 2025
$114 |  | $(2) |  | $(14) |  | $11 |  | $109
January 1, 2024 |  | Additions / (Releases) |  | Write-offs (1) |  | Foreign currency and other |  | December 31, 2024
$192 |  | $(2) |  | $(78) |  | $2 |  | $114
(1)The majority of the write-offs during the period related to receivables which had been previously reserved.

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