INTERNATIONAL BUSINESS MACHINES CORP

International Business Machines Corporation is a global technology company that develops enterprise software (notably hybrid‑cloud and AI platforms), delivers consulting and systems integration services, and sells high‑performance servers and mainframe systems. It generates revenue from software subscriptions and licenses, professional and managed services, hardware sales, and financing arrangements, leveraging a large installed base and global client relationships.^[1]

Business Segments

• Software — hybrid‑cloud platforms, AI and data tools (largest single segment; roughly ~43% of revenue).^[2]
• Consulting — technology and business transformation services, systems integration and managed services (about ~32% of revenue).^[2]
• Infrastructure — mainframes, Power servers, storage and related lifecycle services (about ~24% of revenue).^[2]
• Financing and other — equipment financing and smaller product lines (around ~1% of revenue).^[2]

Competitive Position

• Enterprise focus and hybrid‑cloud specialization give IBM deep relationships with regulated, large‑enterprise clients that value on‑premises/hybrid deployments and data control.^[3]
• Strong brand, long product incumbency (notably mainframes) and extensive R&D/patent portfolio create meaningful switching costs and technical differentiation versus many cloud-native vendors.^[4]

Investment Considerations

• Opportunity: recurring software and subscription mix (hybrid‑cloud and AI platforms) can lift margin profile and create steady, high‑value revenue streams.^[2]
• Opportunity: consulting and systems‑integration services monetize enterprise AI/cloud projects, providing cross‑sell and implementation revenue.^[5]
• Risk: exposure to competitive pressure from hyperscale cloud and SaaS providers, and to shifts in enterprise IT spending patterns, which could compress growth if new offerings don’t scale.^[6]
• Risk: legacy hardware cycles, geopolitical/regulatory and cybersecurity risks are identified company risks that can affect revenue timing and margins.^[6]