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Segments (Tables)
 6 Months Ended
Jun. 30, 2026
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
($ in millions)
SoftwareConsultingInfrastructureFinancingTotal
Segments
For the three months ended June 30, 2026:
     
Revenue$7,761 $5,327 $3,835 $186 $17,110 
Segment cost1,350 3,789 1,596 107 6,841 
Other expenses and (income) (1)
3,910 892 1,404 (29)6,176 
Segment profit
$2,502 $647 $835 $108 $4,092 
Revenue year-to-year change5.1 %0.2 %(7.4)%12.2 %0.6 %
Segment profit year-to-year change8.9 %15.1 %(13.4)%(39.7)%2.2 %
Segment profit margin32.2 %12.1 %21.8 %58.0 %23.9 %
For the three months ended June 30, 2025:
     
Revenue$7,387 $5,314 $4,142 $166 $17,009 
Segment cost1,190 3,854 1,593 90 6,727 
Other expenses and (income) (1)
3,900 898 1,583 (103)6,278 
Segment profit
$2,296 $562 $965 $179 $4,003 
Segment profit margin31.1 %10.6 %23.3 %107.9 %23.5 %
($ in millions)
SoftwareConsultingInfrastructureFinancingTotal
Segments
For the six months ended June 30, 2026:     
Revenue$14,813 $10,599 $7,161 $406 $32,979 
Segment cost2,566 7,611 3,031 232 13,440 
Other expenses and (income) (1)
7,646 1,783 2,770 (52)12,148 
Segment profit
$4,601 $1,205 $1,360 $226 $7,392 
Revenue year-to-year change7.9 %2.1 %1.9 %13.6 %4.7 %
Segment profit year-to-year change11.1 %7.5 %12.1 %(8.6)%9.9 %
Segment profit margin31.1 %11.4 %19.0 %55.8 %22.4 %
For the six months ended June 30, 2025:     
Revenue$13,722 $10,382 $7,027 $357 $31,489 
Segment cost2,232 7,540 2,957 194 12,923 
Other expenses and (income) (1)
7,347 1,721 2,858 (84)11,842 
Segment profit
$4,143 $1,121 $1,213 $248 $6,725 
Segment profit margin30.2 %10.8 %17.3 %69.3 %21.4 %
(1)Other expenses and (income) by segment primarily includes:
Software – Selling, general and administrative (SG&A) expense, Research and development (R&D) expense
Consulting – SG&A expense
Infrastructure – R&D expense, SG&A expense, Other expense, Intellectual property and custom development income
Financing – Intercompany financing net other income which reflects IBM Z product cycle dynamics, SG&A expense
Reconciliation of segment revenue and profit to IBM as reported
Reconciliations to IBM as Reported:
($ in millions)
  
For the three months ended June 30:20262025
Revenue:  
Total reportable segments$17,110 $17,009 
Other revenue (1)
52 (31)
Total revenue from continuing operations$17,162 $16,977 
Pre-tax income from continuing operations:  
Total reportable segment profit
$4,092 $4,003 
Amortization of acquired intangible assets(664)(549)
Acquisition-related charges(52)(26)
Non-operating retirement-related (costs)/income
(96)(25)
Stock-based compensation (2)
(483)(424)
Net interest excluding the Financing segment (413)(343)
Workforce rebalancing charges (2)
(30)(17)
Other‒divested businesses
(3)(20)
Unallocated corporate amounts and other
127 (2)
Total pre-tax income from continuing operations
$2,479 $2,597 
($ in millions)
  
For the six months ended June 30:20262025
Revenue:  
Total reportable segments$32,979 $31,489 
Other revenue (1)
100 30 
Total revenue from continuing operations$33,079 $31,519 
Pre-tax income from continuing operations:
Total reportable segment profit
$7,392 $6,725 
Amortization of acquired intangible assets(1,234)(1,044)
Acquisition-related charges
(128)(88)
Non-operating retirement-related (costs)/income(192)(48)
Stock-based compensation (2)
(987)(825)
Net interest excluding the Financing segment (751)(608)
Workforce rebalancing charges (2)
(366)(333)
Other‒divested businesses
(5)(28)
Unallocated corporate amounts and other136 3 
Total pre-tax income from continuing operations
$3,866 $3,755 
(1)Includes reductions in revenue for the estimated residual value less related unearned income on sales-type leases, which reflects the z17 launch in June 2025. Refer to note A, "Significant Accounting Policies," in the company's 2025 Annual Report for additional information.
(2)Excludes certain acquisition-related charges.
Other reportable segment items
($ in millions)
SoftwareConsultingInfrastructureFinancingTotal
Segments
For the three months ended June 30, 2026:
Depreciation (1) /amortization of non-acquired intangibles
$137 $9 $279 $1 $425 
Interest Income— — — 183 183 
Interest Expense— — — 105 105 
For the three months ended June 30, 2025:
Depreciation (1) /amortization of non-acquired intangibles
$134 $20 $278 $0 $433 
Interest Income— — — 162 162 
Interest Expense— — — 84 84 
($ in millions)
SoftwareConsultingInfrastructureFinancingTotal
Segments
For the six months ended June 30, 2026:
Depreciation (1) /amortization of non-acquired intangibles
$271 $30 $556 $1 $858 
Interest Income— — — 388 388 
Interest Expense— — — 216 216 
For the six months ended June 30, 2025:
Depreciation (1) /amortization of non-acquired intangibles
$255 $40 $544 $2 $842 
Interest Income— — — 338 338 
Interest Expense— — — 173 173 
(1)Where several segments share leased or owned assets, landlord ownership of these assets is assigned to one segment. Depreciation expense in this table is presented consistently with this ownership view. However, from a segment profit perspective, depreciation expense is allocated to each user segment. Therefore, there is no precise correlation between the depreciation expense presented above and segment profit.