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Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition:
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,
($ in millions)2026202520262025
Hybrid Cloud$1,998 $1,796 $3,903 $3,483 
Automation
1,951 1,883 3,692 3,467 
Data
1,782 1,499 3,256 2,736 
Transaction Processing
2,030 2,208 3,963 4,037 
Total Software$7,761 $7,387 $14,813 $13,722 
Strategy and Technology
2,933 2,920 5,829 5,702 
Intelligent Operations
2,394 2,395 4,770 4,680 
Total Consulting$5,327 $5,314 $10,599 $10,382 
Hybrid Infrastructure2,570 2,866 4,678 4,512 
Infrastructure Support1,265 1,275 2,483 2,515 
Total Infrastructure$3,835 $4,142 $7,161 $7,027 
Financing (1)
186 166 406 357 
Other (2)
52 (31)100 30 
Total revenue$17,162 $16,977 $33,079 $31,519 
(1)Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers.
(2)Includes reductions in revenue for estimated residual value less related unearned income on sales-type leases, which reflects the z17 launch in June 2025. Refer to note A, "Significant Accounting Policies," in the company's 2025 Annual Report for additional information.
Revenue by Geography
Three Months Ended June 30,Six Months Ended June 30,
($ in millions)20262025 20262025
Americas$8,417 $8,462 $16,278 $15,668 
Europe/Middle East/Africa5,633 5,413 10,876 9,965 
Asia Pacific3,112 3,103 5,925 5,886 
Total$17,162 $16,977 $33,079 $31,519 
Remaining Performance Obligations
The remaining performance obligation (RPO) disclosure provides the aggregate amount of the transaction price yet to be recognized as of the end of the reporting period and an explanation as to when the company expects to recognize these amounts in revenue. It is intended to be a statement of overall work under contract that has not yet been performed and does not include contracts in which the customer is not committed, such as certain as-a-service, governmental, term software license and services offerings. The customer is not considered committed when they are able to terminate for convenience without payment of a substantive penalty. The disclosure includes estimates of variable consideration, except when the variable consideration is a sales-based or usage-based royalty promised in exchange for a license of intellectual property. Additionally, as a practical expedient, the company does not include contracts that have an original duration of one year or less. RPO estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustment for revenue that has not materialized and adjustments for currency.
At June 30, 2026, the aggregate amount of the transaction price allocated to RPO related to customer contracts that are unsatisfied or partially unsatisfied was approximately $68 billion. Approximately 69 percent of the amount is expected to be recognized as revenue in the subsequent two years, approximately 28 percent in the subsequent three to five years and the balance thereafter.
Revenue Recognized for Performance Obligations Satisfied (or Partially Satisfied) in Prior Periods
For the three and six months ended June 30, 2026, revenue recognized for performance obligations satisfied or partially satisfied in prior periods was not material.
Reconciliation of Contract Balances
The following table provides information about notes and accounts receivable — trade, contract assets and deferred income balances.
($ in millions)
At June 30, 2026At December 31, 2025
Notes and accounts receivable — trade (net of allowances of $107 in 2026 and $99 in 2025)
$6,044 $8,112 
Contract assets (1)
$559 $482 
Deferred income (current)$16,160 $16,101 
Deferred income (noncurrent)$4,272 $4,271 
(1)Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
The amount of revenue recognized during the six months ended June 30, 2026 that was included within the deferred income balance at December 31, 2025 was $8.7 billion and was primarily related to software and services.
The following table provides roll forwards of the notes and accounts receivable — trade allowance for expected credit losses for the six months ended June 30, 2026 and the year ended December 31, 2025.
($ in millions)
    
January 1, 2026Additions / (Releases)
Write-offs (1)
Foreign currency and otherJune 30, 2026
$99$16$(12)$4$107
January 1, 2025Additions / (Releases)
Write-offs (1)
Foreign currency and otherDecember 31, 2025
$114$5$(31)$10$99
(1)The majority of the write-offs during the period related to receivables which had been previously reserved.
The contract assets allowance for expected credit losses was not material in any of the periods presented.