Here are a few brief analogies to describe IBM:

• Like Accenture meets Microsoft's enterprise cloud (Azure).
• The Oracle of hybrid cloud, AI, and business transformation for large enterprises.

• IBM Z Mainframes: High-performance, secure servers designed for large-scale transaction processing and mission-critical workloads.
• IBM Power Systems: Servers optimized for data-intensive applications, AI, and hybrid cloud environments.
• IBM Storage Systems: Enterprise solutions for data management, backup, and disaster recovery, including flash, disk, and tape.
• Red Hat Enterprise Linux & OpenShift: Industry-leading enterprise Linux operating system and a Kubernetes platform for containerized application deployment.
• IBM Db2: A family of relational database management systems for various operating systems and workloads.
• IBM Watson (AI Software): A suite of enterprise AI products for natural language processing, machine learning, and automation.
• IBM Cloud Paks: Containerized software solutions, built on Red Hat OpenShift, for data, AI, automation, security, and integration.
• IBM Security Software: Solutions for identity, access, data, and threat management to protect enterprise assets.
• IBM Consulting (Professional Services): Provides expertise in business transformation, technology strategy, digital experience, and cloud adoption.
• Managed Infrastructure Services (Managed Services): Manages clients' IT infrastructure, including cloud and data center operations, to optimize performance and reduce costs.
• Technology Support Services (Support Services): Offers technical support, maintenance, and repair for IBM and multi-vendor hardware and software products.
• IBM Cloud Platform (Cloud Platform Services): Offers a comprehensive suite of cloud computing services including infrastructure, platform, and software as a service for application development and deployment.

International Business Machines (IBM) primarily sells its technology, software, and consulting services to other businesses (B2B), governments, and large organizations worldwide, rather than directly to individual consumers.

Due to the highly diversified nature of its client base across numerous industries and geographies, IBM does not typically have "major customers" in the traditional sense, where a significant portion of its total revenue comes from a single customer or a small group of customers. Its Annual Reports consistently indicate that no single client accounts for a material percentage (e.g., more than 10%) of its total revenue.

However, IBM serves a vast array of global enterprises. The following are examples of prominent public companies and sectors that are known to leverage IBM's offerings for their critical operations, digital transformation, and hybrid cloud strategies. These examples illustrate the types of large organizations that are IBM clients, rather than representing exclusive or concentrated revenue sources:

• Financial Services: Large banks, insurance companies, and investment firms often rely on IBM's zSystems mainframes for secure transaction processing, data management, and compliance, as well as its software and consulting services.
  • Example: JPMorgan Chase & Co. (JPM)
  • Example: Bank of America Corp. (BAC)
  • Example: Citigroup Inc. (C)
• Telecommunications: Global telecommunication providers utilize IBM's hybrid cloud, AI, and automation solutions to manage complex networks, enhance customer experiences, and develop new services.
  • Example: AT&T Inc. (T)
  • Example: Verizon Communications Inc. (VZ)
• Government & Public Sector: Various governmental agencies, defense organizations, and public institutions worldwide use IBM for large-scale IT infrastructure, data management, security, and digital transformation initiatives. (Note: These are typically not public companies with stock symbols).
• Retail & Consumer Goods: Major retailers and consumer product companies deploy IBM solutions for supply chain optimization, customer engagement platforms, and analytics to drive efficiency and innovation.
  • Example: Walmart Inc. (WMT)
  • Example: The Coca-Cola Company (KO)
• Healthcare & Life Sciences: Pharmaceutical companies, hospitals, and research institutions leverage IBM's expertise in data analytics, cloud, and AI for drug discovery, patient care, and operational improvements.
  • Example: Pfizer Inc. (PFE)
  • Example: Merck & Co., Inc. (MRK)

• GlobalFoundries (GFS)
• Intel (INTC)
• Micron Technology (MU)
• Western Digital (WDC)

Arvind Krishna, Chairman and Chief Executive Officer

Arvind Krishna has served as the Chairman and CEO of IBM since January 2021 and April 2020, respectively. He has been with IBM since 1990, starting at the Thomas J. Watson Research Center. Krishna was the chief architect of IBM's largest acquisition, the $34 billion Red Hat deal, which closed in July 2019. He has been instrumental in advancing IBM's focus on hybrid cloud and AI technologies, leading the expansion of new markets in artificial intelligence, cloud, quantum computing, and blockchain technology. Prior to his CEO role, he held leadership positions including Senior Vice President of Cloud and Cognitive Software and Director of IBM Research.

James J. Kavanaugh, Senior Vice President and Chief Financial Officer

James J. Kavanaugh is the Senior Vice President and Chief Financial Officer of IBM, a position he has held since January 2018. In this role, he oversees IBM's worldwide financial operations, including accounting, treasury, investor relations, and corporate strategy. He also continues to oversee Transformation & Operations, including the Chief Information Office and Global Chief Data Office. Kavanaugh joined IBM in 1996. Before joining IBM, he served as the Chief Financial Officer of Americas Global Services at AT&T Corporation. His career at IBM has included roles such as Vice President of Finance for IBM's Sales and Distribution worldwide and Controller.

Rob Thomas, Senior Vice President, Software and Chief Commercial Officer

Rob Thomas oversees IBM's software business, including global product, development, business, and revenue. He also serves as the Chief Commercial Officer, responsible for all go-to-market activities across IBM's portfolio. Thomas has been a driving force behind IBM's transition to AI and analytics and directed major acquisitions totaling over $12 billion to strengthen IBM's software capabilities. He has a 20-year tenure at IBM, with leadership roles in consulting, microelectronics, and software.

Jonathan H. Adashek, Senior Vice President, Marketing and Communications

Jonathan H. Adashek leads IBM's global Marketing, Communications, and Corporate Social Responsibility efforts. He is responsible for aligning the company's brand and managing federal client business development, as well as overseeing strategic communication initiatives worldwide.

Mohamad Ali, Senior Vice President, IBM Consulting

Mohamad Ali leads IBM Consulting, directing global business transformation and technology services through industry expertise and strategic partnerships. He is responsible for driving client solutions and expanding the company's consulting footprint by leveraging IBM technology and AI. Prior to joining IBM, Mohamad Ali served as CEO of IDG and Carbonite, and was Chief Strategy Officer at Hewlett Packard.

• Intensified competition from hyperscale cloud providers (Amazon AWS, Microsoft Azure, Google Cloud Platform) as they increasingly expand beyond infrastructure and platform services to offer comprehensive enterprise consulting, managed services, and industry-specific solutions, directly encroaching on IBM's traditional strengths in enterprise software and professional services.
• The rapid advancement and widespread availability of highly capable generative AI and large language models (LLMs) from specialized AI companies and hyperscale cloud providers. This trend can commoditize aspects of enterprise AI development and reduce reliance on proprietary AI platforms, potentially challenging IBM's Watsonx offerings and AI consulting business.

IBM operates across several significant and growing addressable markets, primarily focusing on software, consulting, and infrastructure solutions, with a strong emphasis on hybrid cloud and artificial intelligence (AI).

Software

IBM's software portfolio, which includes Hybrid Cloud Platform & Solutions (such as Red Hat OpenShift), Automation, Data & AI, and Transaction Processing, addresses the broader enterprise software market. The global enterprise software market was valued at approximately $280.49 billion in 2025 and is projected to reach around $761.73 billion by 2034, growing at a CAGR of 11.74% from 2025 to 2034. Another estimate places the global enterprise software market at $316.69 billion in 2025, expected to grow to $403.90 billion by 2030, excluding administrative software, office suites, and collaboration tools. Using a broader definition that includes infrastructure, security software, and databases, the market was estimated at $899.9 billion in 2024. IBM's annual recurring revenue (ARR) for its hybrid platform and solutions within its software segment stood at $14.9 billion, marking an 11% year-over-year increase.

Consulting

IBM Consulting, formerly IBM Global Business Services, provides a range of professional services, including strategy and management consulting, experience design, technology and systems integration, and operations, with a focus on digital transformation, hybrid cloud architectures, and AI services. The global IT consulting services market is substantial. It was valued at an estimated $78.03 billion in 2025 and is forecasted to reach $93.73 billion by 2033, expanding at a CAGR of 6.5% during that period. Other estimates indicate the global IT consulting services market could reach $117.1 billion by the end of 2025 and grow to $278.779 billion by 2033. Another source valued the global IT consulting services market at $561.8 billion in 2024, projected to reach $906.47 billion by 2032.

Infrastructure

IBM's infrastructure offerings encompass hardware (such as IBM z series mainframes, Power Systems, and storage solutions), as well as Infrastructure as a Service (IaaS) and hybrid infrastructure. The global Infrastructure as a Service (IaaS) market was valued at $142.35 billion in 2024 and is projected to grow from $158.89 billion in 2025 to $396.01 billion by 2032, exhibiting a CAGR of 13.9% during the forecast period. The global hybrid cloud market is also a significant addressable market for IBM, estimated at $172.77 billion in 2025 and projected to grow to $311.75 billion by 2030. Furthermore, the global Infrastructure Services market is projected to be $159.8 billion in 2025, expanding to $810.55 billion by 2033. For IBM-specific server and storage products through VARs, the global IBM Server VARs market size is estimated at $11.75 billion in 2025, projected to reach $22.07 billion by 2033. The global IBM Storage VARs market is expected to be $5.98 billion in 2025, growing to $9.62 billion by 2033.

Artificial Intelligence (AI)

IBM's AI capabilities, notably through its Watsonx platform, target a rapidly expanding market for AI solutions and services. The global IBM Watson services market was valued at $5.50 billion in 2023 and is projected to reach $76.47 billion by 2033, demonstrating an impressive CAGR of 30.1% from 2023 to 2033. IBM's generative AI business has shown strong momentum, with bookings exceeding $6 billion since its inception. Approximately three-quarters of this generative AI business has been through consulting engagements, with the remaining quarter from software.

International Business Machines (IBM) - Expected Drivers of Future Revenue Growth

Share Repurchases

• IBM suspended its share repurchase program in 2019 following the Red Hat acquisition to prioritize debt reduction.
• As of December 31, 2024, IBM retained approximately $2.008 billion in authorized funds for common stock repurchases.
• No significant stock buybacks have been resumed by IBM through 2023 and into 2024.

Share Issuance

• IBM issued 12,253,153 shares in 2024, 9,794,240 shares in 2023, and 8,539,072 shares in 2022 as part of its stock-based compensation plans and employee stock purchase plan.
• The dollar amount of stock issued for the trailing twelve months ended June 2025 was $401 million.

Outbound Investments

• IBM has actively pursued acquisitions to bolster its hybrid cloud and AI strategy, completing 11 acquisitions in 2024 with a total investment of $3.3 billion. Notable acquisitions in 2024 include HashiCorp for an enterprise value of $6.4 billion.
• In 2023, IBM acquired 3 companies, including Manta Software Inc., and announced its intent to acquire Software AG's StreamSets and webMethods platforms for €2.13 billion ($2.33 billion).
• During 2022, IBM acquired 8 companies, investing over $2 billion, focusing on areas like cloud consulting, data quality management, and digital transformation services.

Capital Expenditures

• IBM's capital expenditures have shown a decreasing trend, with values of $2.618 billion in 2020, $2.062 billion in 2021, $1.346 billion in 2022, $1.245 billion in 2023, and $1.048 billion in 2024.
• The latest twelve months capital expenditures, ending September 30, 2025, amounted to $1.012 billion.
• IBM announced a plan in April 2025 to invest $150 billion in America over the next five years, including over $30 billion in research and development for American manufacturing of mainframe and quantum computers.