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International Business Machines (IBM)
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Revenue Analysis
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($ in millions)
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Legend: Blue=Input/Company Provided; Orange=Driver
FYFYFYFYFYFYFYFY
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Black=Formula; Green=Link to Another Sheet
2021202220232024Mar-25Jun-25Sep-25Dec-252025Mar-26Jun-26Sep-26EDec-26E2026EMar-27EJun-27ESep-27EDec-27E2027EMar-28EJun-28ESep-28EDec-28E2028E
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Total Build
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Revenue Build
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Software 23,426 23,629 25,011 27,086 6,336 7,387 7,209 9,031 29,963 7,052 7,761 7,569 9,573 31,955 7,546 8,537 8,326 10,626 35,035 8,262 9,348 9,117 11,635 38,363
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Consulting 17,843 20,058 20,884 20,692 5,068 5,314 5,324 5,349 21,055 5,272 5,327 5,377 5,402 21,379 5,377 5,434 5,512 5,565 21,887 5,539 5,597 5,677 5,732 22,544
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Infrastructure 14,188 15,289 14,592 14,019 2,886 4,142 3,559 5,132 15,719 3,326 3,835 3,523 5,543 16,227 3,426 3,912 3,523 5,487 16,348 3,460 3,951 3,559 5,542 16,512
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Financing 773 646 742 713 191 166 200 179 736 220 186 190 170 766 222 188 192 172 774 224 190 194 173 781
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Other 1,118 910 633 243 60 (32) 38 (5) 61 48 52 2525 150 25252525 100 25252525 100
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Total Revenue 57,348 60,532 61,862 62,753 14,541 16,977 16,330 19,686 67,534 15,918 17,161 16,685 20,713 70,477 16,596 18,095 17,578 21,874 74,144 17,511 19,110 18,572 23,107 78,300
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Y/Y Growth5.6%2.2%1.4%0.5%7.7%9.1%12.1%7.6%9.5%1.1%2.2%5.2%4.4%4.3%5.4%5.4%5.6%5.2%5.5%5.6%5.7%5.6%5.6%
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FX Impact-6.4%-0.8%-1.6%-1.5%2.7%2.1%3.1%1.4%3.5%0.1%-2.0%-2.5%-0.5%-1.9%-1.0%-0.4%0.0%-0.8%-0.2%0.0%0.0%0.0%-0.1%
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CC y/y Growth12.0%3.0%3.0%2.0%5.0%7.0%9.0%6.3%6.0%1.0%4.2%7.7%4.9%6.2%6.4%5.7%5.6%6.0%5.7%5.6%5.7%5.6%5.7%
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Q/Q Growth-17.2%16.8%-3.8%20.6%-19.1%7.8%-2.8%24.1%-19.9%9.0%-2.9%24.4%-19.9%9.1%-2.8%24.4%
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GAAP Gross Profit
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Software 18,648 19,482 20,717 22,658 5,296.9 6,197.7 5,990.7 7,531.9 25,017 5,839.1 6,410.6 6,328.1 8,031.6 26,609 6,266.7 7,073.0 6,981.7 8,941.7 29,263 6,882.6 7,768.3 7,667.7 9,820.2 32,139
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Consulting 4,989 5,179 5,592 5,586 1,383.6 1,461.4 1,559.9 1,519.1 5,924 1,449.8 1,539.5 1,602.4 1,561.3 6,153 1,494.9 1,586.6 1,659.0 1,624.9 6,365 1,556.4 1,651.0 1,725.8 1,690.8 6,624
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Infrastructure 7,848 8,075 8,187 7,821 1,523.8 2,547.3 2,035.7 3,110.0 9,217 1,892.5 2,239.6 2,024.2 3,372.6 9,529 1,957.8 2,294.2 2,033.0 3,352.6 9,638 1,986.1 2,327.0 2,062.2 3,400.0 9,775
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Financing 245 248 357 341 87.5 75.9 91.2 78.9 333 95.5 79.1 86.6 75.0 336 96.4 79.8 87.5 75.7 340 97.4 80.6 88.4 76.5 343
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Other (245) (296) (554) (856) (261) (305) (318) (312) (1,195) (327) (362)-200.0-200.0 (1,089)-150.0-200.0-200.0-200.0 (750)-300.0-250.0-250.0-250.0 (1,050)
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Total Gross Profit 31,485 32,687 34,300 35,551 8,031 9,977 9,360 11,928 39,296 8,950 9,907 9,841 12,841 41,539 9,666 10,834 10,561 13,795 44,856 10,222 11,577 11,294 14,738 47,831
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Total Gross Profit Margin54.9%54.0%55.4%56.7%55.2%58.8%57.3%60.6%58.2%56.2%57.7%59.0%62.0%58.9%58.2%59.9%60.1%63.1%60.5%58.4%60.6%60.8%63.8%61.1%
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33
Pre-Tax Income
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Non-GAAP Pre-Tax Income from Model
 1,738 3,196 3,034 4,746 2,129 3,290 3,153 5,361 2,248 3,786 3,354 5,942 2,626 3,979 3,798 6,238
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Bottoms Up Pre-Tax Income 2,722 4,002 3,827 5,812 3,299 4,092 4,022 6,246 3,593 4,505 4,423 6,814 3,966 4,946 4,864 7,424
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Difference (883) (2,072) (2,519) (2,329) (984) (806) (793) (1,066) (3,649) (1,170) (802) (869) (885) (3,726) (1,345) (719) (1,069) (873) (4,006) (1,340) (968) (1,065) (1,186) (4,559)
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Non-GAAP Pre-Tax Income margin from Model
12.0%18.8%18.6%24.1%13.4%19.2%18.9%25.9%13.5%20.9%19.1%27.2%15.0%20.8%20.5%27.0%
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Pre-Tax Income margin from segments bottoms up
18.7%23.6%23.4%29.5%20.7%23.8%24.1%30.2%21.7%24.9%25.2%31.2%22.7%25.9%26.2%32.1%
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Difference-6.8%-4.7%-4.9%-5.4%-7.4%-4.7%-5.2%-4.3%-8.1%-4.0%-6.1%-4.0%-7.7%-5.1%-5.7%-5.1%
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Revenue Segements
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Software Build
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Software Revenue 23,426 23,629 25,011 27,086 6,336 7,387 7,209 9,031 29,963 7,052 7,761 7,569 9,573 31,955 7,546 8,537 8,326 10,626 35,035 8,262 9,348 9,117 11,635 38,363
LT Target
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Y/Y Growth0.9%5.8%8.3%7.4%9.6%10.5%14.0%10.6%11.3%5.1%5.0%6.0%6.6%7.0%10.0%10.0%11.0%9.6%9.5%9.5%9.5%9.5%9.5%
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FX Impact-11.0%-0.2%-0.7%-1.6%2.0%1.5%3.0%1.4%3.4%0.5%-2.0%-2.5%-0.5%-1.9%-1.0%-0.4%0.0%-0.8%-0.2%0.0%0.0%0.0%-0.1%
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CC y/y Growth11.9%6.0%9.0%9.0%7.6%9.0%11.0%9.3%7.9%4.6%7.0%8.5%7.1%8.9%11.0%10.4%11.0%10.4%9.7%9.5%9.5%9.5%9.6%
Software ~10%
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Q/Q Growth-20.0%1.2%-2.4%25.3%-21.9%1.2%-2.5%26.5%-21.2%13.1%-2.5%27.6%-22.2%13.1%-2.5%27.6%
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% of Total Revenue39.0%40.4%43.2%43.6%43.5%44.1%45.9%44.4%44.3%45.2%45.4%46.2%45.3%45.5%47.2%47.4%48.6%47.3%47.2%48.9%49.1%50.4%49.0%
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Deferred Revenue Contribution 1,372 34 (1,194) 2,631 857 (797)
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Deferred Revenue Contribution % of Revenue
21.7%0.5%-16.6%29.1%12.2%-10.3%
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Organic Contribution 24,861 26,586 6,148 7,011 6,957 8,761 28,877 6,790 7,432 7,224 9,212 30,657 7,238
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Y/Y Organic Growth6.3%4.2%4.0%6.6%10.6%6.6%7.2%0.6%0.2%2.0%2.3%2.6%
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Y/Y Inorganic Growth Contribution2.0%3.2%5.6%3.9%3.4%4.0%4.1%4.4%4.8%4.0%4.3%4.4%
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Y/Y Growth8.3%7.4%9.6%10.5%14.0%10.6%11.3%5.1%5.0%6.0%6.6%7.0%
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Inorganic Contribution 500 187.9 376.2 252.2 269.9 1,086 262.4 328.7 345.6 361.2 1,298 307.8 - - - - - - -
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Hybrid Cloud5,031 5,671 5,827 6,490 1,687 1,796 1,886 1,958 7,327 1,905 2,000 2,075 2,173 8,153 2,096 2,230 2,324 2,434 9,083 2,357 2,509 2,614 2,738 10,219
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Y/Y Growth12.7%2.8%11.4%11.7%16.1%13.7%10.4%12.9%12.9%11.4%10.0%11.0%11.3%10.0%11.5%12.0%12.0%11.4%12.5%12.5%12.5%12.5%12.5%
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CC Y/Y Growth17.5%9.0%12.0%13.0%14.0%12.0%8.0%11.5%10.0%11.0%12.0%13.5%11.8%11.9%12.5%12.4%12.0%12.2%12.7%12.5%12.5%12.5%12.6%
Mid-teens
80
Y/Y Organic Growth11.4%11.7%16.1%13.7%10.4%12.9%12.9%11.4%10.0%11.0%11.3%10.0%11.5%12.0%12.0%11.4%12.5%12.5%12.5%12.5%12.5%
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Y/Y Inorganic Growth Contribution0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
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% of Software21.5%24.0%23.3%24.0%26.6%24.3%26.2%21.7%24.5%27.0%25.8%27.4%22.7%25.5%27.8%26.1%27.9%22.9%25.9%28.5%26.8%28.7%23.5%26.6%
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Automation4,064 4,159 6,009 6,558 1,584 1,883 1,934 2,332 7,733 1,741 2,000 1,992 2,449 8,182 1,837 2,160 2,181 2,681 8,859 2,011 2,365 2,388 2,936 9,701
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Y/Y Growth2.3%9.1%13.9%16.2%23.7%17.5%17.9%9.9%6.2%3.0%5.0%5.8%5.5%8.0%9.5%9.5%8.3%9.5%9.5%9.5%9.5%9.5%
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CC Y/Y Growth6.6%10.0%15.0%14.0%22.0%14.0%16.6%7.0%3.0%5.0%7.5%6.3%7.4%9.0%9.9%9.5%9.0%9.7%9.5%9.5%9.5%9.6%
Low-double digits
87
Y/Y Organic Growth2.9%4.9%0.7%11.6%7.1%6.1%1.2%6.2%3.0%5.0%4.0%5.5%8.0%9.5%9.5%8.3%9.5%9.5%9.5%9.5%9.5%
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Y/Y Inorganic Growth Contribution6.2%9.0%15.5%12.1%10.5%11.8%8.7%0.0%0.0%0.0%1.8%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
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% of Software17.3%17.6%24.0%24.2%25.0%25.5%26.8%25.8%25.8%24.7%25.8%26.3%25.6%25.6%24.3%25.3%26.2%25.2%25.3%24.3%25.3%26.2%25.2%25.3%
90
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Data5,128 5,198 5,462 5,631 1,236 1,499 1,459 2,105 6,299 1,474 1,800 1,722 2,505 7,501 1,754 2,016 1,885 2,743 8,398 1,921 2,208 2,064 3,003 9,196
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Y/Y Growth1.4%3.1%5.4%8.8%7.9%21.8%11.9%19.3%20.1%18.0%19.0%19.1%19.0%12.0%9.5%9.5%12.0%9.5%9.5%9.5%9.5%9.5%
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CC Y/Y Growth5.5%4.0%7.0%7.0%7.0%19.0%10.5%16.0%18.0%20.0%21.5%19.6%20.9%13.0%9.9%9.5%12.7%9.7%9.5%9.5%9.5%9.6%
Mid-to high single digits
94
Y/Y Organic Growth0.8%0.0%-0.3%3.3%18.2%6.3%9.2%-1.8%-5.7%1.8%0.7%-1.9%12.0%9.5%9.5%12.0%9.5%9.5%9.5%9.5%9.5%
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Y/Y Inorganic Growth Contribution2.3%5.3%9.1%4.6%3.6%5.5%10.0%21.9%23.7%17.2%18.4%20.9%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
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% of Software21.9%22.0%21.8%20.8%19.5%20.3%20.2%23.3%21.0%20.9%23.2%22.7%26.2%23.5%23.2%23.6%22.6%25.8%24.0%23.2%23.6%22.6%25.8%24.0%
102
103
Transaction Processing6,390 7,171 7,713 8,407 1,829 2,209 1,930 2,636 8,604 1,932 1,961 1,781 2,446 8,120 1,859 2,131 1,936 2,768 8,694 1,973 2,267 2,051 2,957 9,248
104
Y/Y Growth12.2%9.0%0.2%0.7%-1.0%8.1%2.3%5.6%-11.2%-7.7%-7.2%-5.6%-3.8%8.7%8.7%13.1%7.1%6.1%6.4%5.9%6.9%6.4%
105
CC Y/Y Growth18.7%10.0%2.0%-2.0%-3.0%4.0%1.0%2.0%-9.0%-5.7%-4.7%-5.1%-1.8%9.7%9.1%13.2%7.8%6.3%6.4%5.9%6.9%6.4%
Between low & Mid-single digits
106
Y/Y Organic Growth9.0%0.2%0.7%-1.0%8.1%2.3%5.6%-11.2%-7.7%-7.2%-5.6%-3.8%8.7%8.7%13.1%7.1%6.1%6.4%5.9%6.9%6.4%
107
Y/Y Inorganic Growth Contribution0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
108
% of Software27.3%30.3%30.8%31.0%28.9%29.9%26.8%29.2%28.7%27.4%25.3%23.5%25.6%25.4%24.6%25.0%23.3%26.0%24.8%23.9%24.2%22.5%25.4%24.1%
109
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Software COGS 4,778 4,147 4,294 4,428 1,039 1,189 1,218 1,499 4,946 1,213 1,350 1,241 1,541 5,346 1,279 1,464 1,345 1,684 5,772 1,380 1,580 1,450 1,815 6,224
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Software Gross Profit 18,648 19,482 20,717 22,658 5,297 6,198 5,991 7,532 25,017 5,839 6,411 6,328 8,032 26,609 6,267 7,073 6,982 8,942 29,263 6,883 7,768 7,668 9,820 32,139
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Software Gross Margin79.6%82.4%82.8%83.7%83.6%83.9%83.1%83.4%83.5%82.8%82.6%83.6%83.9%83.3%83.1%82.9%83.9%84.2%83.5%83.3%83.1%84.1%84.4%83.8%
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115
Segment Profit 4,849 7,011 7,499 8,684 1,847 2,296 2,374 3,403 9,920 2,099 2,502 2,531 3,655 10,787 2,321 2,838 2,867 4,163 12,189 2,625 3,201 3,230 4,675 13,731
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Segment Profit Margin20.7%29.7%30.0%32.1%29.2%31.1%32.9%37.7%33.1%29.8%32.2%33.4%38.2%33.8%30.8%33.2%34.4%39.2%34.8%31.8%34.2%35.4%40.2%35.8%
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ARR 21,700 22,700 23,200 23,600 24,600 24,600
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Y/Y Growth
120
CC y/y Growth11.0%10.0%9.0%7.0%10.0%8.0%
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Net New ARR 6,400 1,000 500 400 1,000 -
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Consulting Build
124
Consulting 17,843 20,058 20,884 20,692 5,068 5,314 5,324 5,349 21,055 5,272 5,327 5,377 5,402 21,379 5,377 5,434 5,512 5,565 21,887 5,539 5,597 5,677 5,732 22,544
LT Target
125
Y/Y Growth12.4%4.1%-0.9%-2.3%2.6%3.3%3.4%1.8%4.0%0.2%1.0%1.0%1.5%2.0%2.0%2.5%3.0%2.4%3.0%3.0%3.0%3.0%3.0%
126
FX Impact-2.3%2.9%1.3%2.4%1.4%3.1%-0.9%-2.0%-2.5%-0.5%-1.9%-1.0%-0.4%0.0%-0.8%-0.2%0.0%0.0%0.0%-0.1%
127
CC y/y Growth14.9%6.0%0.6%0.0%-0.3%2.0%1.0%0.4%0.9%1.1%3.0%3.5%2.0%3.9%3.0%2.9%3.0%3.1%3.2%3.0%3.0%3.0%3.1%Market +
128
Q/Q Growth0.0%4.9%0.2%0.5%0.0%1.0%0.9%0.5%-0.5%1.0%1.4%1.0%-0.5%1.0%1.4%1.0%