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Revenue Recognition
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
($ in millions)2026202520262025
Hybrid Cloud$2,086 $1,886 $5,988 $5,369 
Automation
1,870 1,934 5,562 5,401 
Data
1,738 1,459 4,994 4,194 
Transaction Processing
2,111 1,930 6,073 5,967 
Total Software$7,804 $7,209 $22,617 $20,932 
Strategy and Technology
2,965 2,905 8,794 8,607 
Intelligent Operations
2,370 2,419 7,140 7,100 
Total Consulting$5,335 $5,324 $15,934 $15,706 
Hybrid Infrastructure2,452 2,263 7,130 6,775 
Infrastructure Support1,255 1,296 3,738 3,811 
Total Infrastructure$3,707 $3,559 $10,868 $10,586 
Financing (1)
192 200 598 557 
Other (2)
66 38 165 68 
Total revenue$17,103 $16,331 $50,182 $47,849 
(1)Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers.
(2)Includes reductions in revenue for estimated residual value less related unearned income on sales-type leases, which reflects the z17 launch in June 2025. Refer to note A, "Significant Accounting Policies," in the company's 2025 Annual Report for additional information.
Revenue by Geography
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions)2026202520262025
Americas$8,576 $8,143 $24,854 $23,811 
Europe/Middle East/Africa5,426 5,251 16,302 15,216 
Asia Pacific3,101 2,936 9,027 8,822 
Total$17,103 $16,331 $50,182 $47,849 
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 September 30, 2026, the aggregate amount of the transaction price allocated to RPO related to customer contracts that are unsatisfied or partially unsatisfied was approximately $69 billion. Approximately 70 percent of the amount is expected to be recognized as revenue in the subsequent two years, approximately 27 percent in the subsequent three to five years and the balance thereafter.
Revenue Recognized for Performance Obligations Satisfied (or Partially Satisfied) in Prior Periods
For the three and nine months ended September 30, 2026, revenue recognized for performance obligations satisfied or partially satisfied in prior periods was not material.
Reconciliation of Contract Balances
The following table provides information about notes and accounts receivable — trade, contract assets and deferred income balances.
($ in millions)
At September 30, 2026At December 31, 2025
Notes and accounts receivable — trade (net of allowances of $115 in 2026 and $99 in 2025)
$5,794 $8,112 
Contract assets (1)
$667 $482 
Deferred income (current)$15,164 $16,101 
Deferred income (noncurrent)$4,318 $4,271 
(1)Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
The amount of revenue recognized during the nine months ended September 30, 2026 that was included within the deferred income balance at December 31, 2025 was $11.4 billion and was primarily related to software and services.
The following table provides roll forwards of the notes and accounts receivable — trade allowance for expected credit losses for the nine months ended September 30, 2026 and the year ended December 31, 2025.
($ in millions)
January 1, 2026Additions / (Releases)
Write-offs (1)
Foreign currency and otherSeptember 30, 2026
$99$25$(17)$9$115
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.