Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 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

(Dollars in millions)
For the three months ended March 31:	2025		2024 (1)
Hybrid Cloud	$	1,687	$	1,510
Automation	1,584		1,391
Data	1,236		1,173
Transaction Processing	1,828		1,824
Total Software	$	6,336	$	5,899
Strategy and Technology	2,782		2,863
Intelligent Operations	2,286		2,323
Total Consulting	$	5,068	$	5,186
Hybrid Infrastructure	1,646		1,803
Infrastructure Support	1,240		1,273
Total Infrastructure	$	2,886	$	3,076
Financing (2)	191		193
Other	61		108
Total revenue	$	14,541	$	14,462

(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.

Schedule of disaggregation of revenue by geography

(Dollars in millions)
For the three months ended March 31:	2025		2024
Americas	$	7,206	$	7,296
Europe/Middle East/Africa	4,552		4,313
Asia Pacific	2,783		2,853
Total	$	14,541	$	14,462

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 March 31, 2025		At December 31, 2024
Notes and accounts receivable — trade (net of allowances of $102 in 2025 and $114 in 2024)	$	5,857	$	6,804
Contract assets (1)	$	465	$	433
Deferred income (current)	$	15,057	$	13,907
Deferred income (noncurrent)	$	3,844	$	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 three months ended March 31, 2025 and the year ended December 31, 2024.

(Dollars in millions)
January 1, 2025	Additions / (Releases)	Write-offs (1)	Foreign currency and other	March 31, 2025
$114	$(10)	$(8)	$6	$102

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.