XML 42 R31.htm IDEA: XBRL DOCUMENT v3.25.3
Revenue Recognition (Tables)
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
(Dollars in millions)2025
2024 (1)
2025
2024 (1)
Hybrid Cloud$1,886 $1,659 $5,369 $4,716 
Automation
1,934 1,563 5,401 4,574 
Data
1,459 1,352 4,194 3,902 
Transaction Processing
1,930 1,951 5,967 5,970 
Total Software$7,209 $6,524 $20,932 $19,162 
Strategy and Technology
2,905 2,856 8,607 8,613 
Intelligent Operations
2,419 2,297 7,100 6,904 
Total Consulting$5,324 $5,152 $15,706 $15,517 
Hybrid Infrastructure2,263 1,765 6,775 5,928 
Infrastructure Support1,296 1,277 3,811 3,835 
Total Infrastructure$3,559 $3,042 $10,586 $9,764 
Financing (2)
200 181 557 543 
Other (3)
38 68 68 214 
Total revenue$16,331 $14,968 $47,849 $45,199 
(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 September 30,Nine Months Ended September 30,
(Dollars in millions)20252024 20252024
Americas$8,143 $7,453 $23,811 $22,727 
Europe/Middle East/Africa5,251 4,584 15,216 13,619 
Asia Pacific2,936 2,932 8,822 8,853 
Total$16,331 $14,968 $47,849 $45,199 
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 September 30, 2025At December 31, 2024
Notes and accounts receivable — trade (net of allowances of $116 in 2025 and $114 in 2024)
$5,532 $6,804 
Contract assets (1)
$533 $433 
Deferred income (current)$13,878 $13,907 
Deferred income (noncurrent)$3,863 $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 nine months ended September 30, 2025 and the year ended December 31, 2024.
(Dollars in millions)    
January 1, 2025Additions / (Releases)
Write-offs (1)
Foreign currency and otherSeptember 30, 2025
$114$8$(19)$13$116
January 1, 2024Additions / (Releases)
Write-offs (1)
Foreign currency and otherDecember 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.