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International Business Machines Corporation

Enterprise technologyFounded 1911
Reviewed by Swet Parvadiya
Company data updated: October 2026
Independent Editorial Analysis
13 historical events · Editorial analysis

IBM Company Profile: Revenue, Business Model & Strategy

Research depth: 13 milestones · 10 FAQs

IBM reported $67.5 billion in FY2025 revenue and $10.6 billion in net income from continuing operations, with about 264,300 employees under CEO Arvind Krishna. Q2 2026 revenue was $17.16 billion, up 1%.

How IBM makes money: IBM makes money from four segments. Software ($29.96 billion in FY2025, about 44% of revenue) includes Red Hat Enterprise Linux and OpenShift, HashiCorp Terraform and Vault, Confluent data streaming (from March 2026),…

Revenue & employeesCEO historyFoundersBusiness model
Annual Revenue (FY2025)$67.5B
Employees264,300
CEOArvind Krishna
Founded1911
IndustryTechnology
By Editorial TeamLast reviewed:
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Data sources: annual reports, SEC filings, methodology
Industry:Enterprise technology

International Business Machines Corporation key figures

International Business Machines Corporation had revenue of $67.5B for fiscal year 2025, up 7.6% from FY2024. Net income was $10.6B, a net margin of 15.7%.

Source: INTERNATIONAL BUSINESS MACHINES CORP annual report (Form 10-K, SEC EDGAR, filed 2026-02-24) · Last reviewed October 2026

Revenue growth, FY2016 to FY2025
-1.9% a year
Compound annual rate, $79.9B to $67.5B
Peak revenue year
FY2016
$79.9B; the latest reported year is 15.5% below the peak
Revenue per employee
$255,524
FY2025 revenue divided by 264,300 employees; headcount may use another date
Current chief executive
Arvind Krishna
In the role since 2020 (6 years)
Documented transactions
7
Between 1995 and 2026
Founded
1911
115 years ago
Where was IBM founded?
IBM was founded in Endicott, United States in 1911. wikidata.org
When did IBM start?
IBM was founded in 1911.
Who founded IBM?
IBM was founded by Charles Ranlett Flint.
How old is IBM?
IBM is 115 years old as of 2026.
In-Depth Analysis

IBM Company Overview

IBM is a 1911 enterprise technology company built around hybrid cloud, AI, consulting, and mission-critical infrastructure. FY2025 revenue reached $67.535 billion, with Software leading the segment mix.

How IBM Makes Money

IBM earns from software subscriptions and licenses, consulting engagements, infrastructure products and maintenance, and financing. FY2025 segment revenue was led by Software at $29.962 billion.

Why IBM Still Matters

IBM remains important because regulated enterprises often need hybrid systems that connect mainframes, private infrastructure, public cloud, and AI governance rather than a clean public-cloud migration.

Table of Contents

International Business Machines Corporation Key Facts

CompanyInternational Business Machines Corporation
Annual revenue change+7.6% (FY2024–FY2025)
Financials$67.5B (FY2025, last reviewed October 2026)
Market Cap$216.3B
FY2025 net income$10.6B
Last reviewedBy Swet Parvadiya, Founder & Editor - October 2026
Founded1911
Founder(s)Charles Ranlett Flint
CEOArvind Krishna
HeadquartersArmonk, New York
IndustryEnterprise technology
Employees264,300+

IBM Company Profile: Revenue, Business Model & Strategy

"IBM's latest annual report shows $67.5 billion in FY2025 revenue, a 7.6% reported increase, with software alone producing nearly $30 billion. That mix shift explains why investors now judge IBM less like a legacy hardware vendor and more like a hybrid-cloud and enterprise AI platform company."

Why International Business Machines Corporation Wins

IBM wins where enterprise technology has to fit regulated, hybrid, legacy-heavy environments. Banks, governments, insurers, airlines, and large manufacturers often cannot move everything to a public cloud, and IBM's combination of Red Hat, IBM Z, consulting, and enterprise AI gives it a credible integration story.

International Business Machines Corporation operates in a competitive market alongside Microsoft Corporation, Alphabet Inc., Oracle Corporation, Accenture PLC, Amazon.com, Inc.. Analysts frequently compare International Business Machines Corporation and Microsoft Corporation due to their overlapping products, target markets, and strategic positioning.

IBM reported $67.5 billion in FY2025 revenue and $10.6 billion in net income from continuing operations, with about 264,300 employees under CEO Arvind Krishna. Q2 2026 revenue was $17.16 billion, up 1%.

Revenue

$67.5B

Founded

1911

Employees

264K+

Market Cap

$216.3B

Author: Editorial TeamCompany Research

Explore IBM In Depth

Detailed research across every dimension of IBM — history, financials, leadership, and strategy.

Company History

IBM, nicknamed Big Blue, is one of the oldest technology companies still operating at scale. It missed the consumer internet and smartphone eras, sold its PC business to Lenovo in 2005, and spun off its managed…

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Revenue & Financials

IBM had $67.5B in revenue for fiscal year 2025. Data covers 10 fiscal years. Market capitalization stands at approximately $216B.

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Founders

IBM was founded by Charles Ranlett Flint in 1911 in Endicott, United States. Explore each founder's background, motivations, and their role in building the company.

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CEO & Leadership

IBM is currently led by Arvind Krishna. Explore the full CEO history — leadership transitions, tenures, and the strategic decisions of each chief executive.

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Business Model

IBM makes money from four segments. Software ($29.96 billion in FY2025, about 44% of revenue) includes Red Hat Enterprise Linux and OpenShift, HashiCorp Terraform and Vault, Confluent data streaming (from March 2026),…

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Acquisitions

IBM has completed 7 documented acquisitions. Explore the full acquisition history and strategic rationale behind each deal.

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IBM does not try to beat AWS, Microsoft Azure, or Google Cloud at selling public cloud capacity. It sells the software layer that runs across all of them and across on-premises data centers.

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Editorial Team

 Research Profile

Our analysts compile business strategy profiles from public financial filings, press releases, and analyst reports. Each profile is reviewed for accuracy before publication by our editorial desk and updated on a rolling basis.

About the Author →Our Methodology →

Frequently Asked Questions About IBM

What is International Business Machines Corporation (IBM) and what is its core business today?

International Business Machines Corporation (NYSE: IBM) is a global technology and enterprise solutions leader headquartered in Armonk, New York. Founded in 1911, IBM focuses on hybrid cloud computing, enterprise artificial intelligence (watsonx), mission-critical mainframe infrastructure, IT consulting, and quantum computing.

What are IBM's primary operating business segments?

IBM operates across four main business segments: Software (hybrid cloud platform Red Hat, data & AI, automation, and security software), Consulting (business transformation, technology consulting, and cloud application modernization), Infrastructure (zSystems mainframes, Power servers, and storage), and Financing.

How does IBM make money?

IBM earns most of its revenue from enterprise customers. In FY2025, Software brought in $29.96 billion (about 44%), Consulting $21.06 billion (about 31%), Infrastructure such as IBM Z mainframes and storage $15.72 billion (about 23%), and Financing $0.74 billion. Software is mostly recurring subscription and license revenue from Red Hat, automation, data, AI, and security products.

Who owns IBM?

IBM is a publicly traded company listed on the New York Stock Exchange under the ticker IBM, so it is owned by its shareholders. Most shares are held by institutional investors such as index fund managers; no single owner controls the company. Its market capitalization was about $216 billion in mid-September 2026.

Who are IBM's main competitors?

IBM competes with Microsoft, Amazon Web Services, and Google Cloud in cloud and AI; Oracle, Broadcom (VMware), Snowflake, and Databricks in enterprise software and data; and Accenture, Deloitte, Capgemini, and Infosys in consulting. In mainframes it has no direct hardware rival.

What were IBM's latest quarterly results?

In Q2 2026 (reported July 22, 2026), IBM revenue rose 1% to $17.16 billion. Software grew 5% to $7.76 billion, Consulting was flat at $5.33 billion, and Infrastructure fell 7% to $3.84 billion. IBM lowered its 2026 constant-currency revenue growth outlook to 4-5% and kept its goal of about $1 billion more free cash flow than in 2025.

What companies has IBM acquired recently?

IBM completed its roughly $11 billion acquisition of Confluent (real-time data streaming) on March 17, 2026, and its $6.4 billion acquisition of HashiCorp (Terraform, Vault) in February 2025. Earlier deals include Apptio ($4.6 billion, 2023) and Red Hat ($34 billion, 2019).

Who is the Chairman and Chief Executive Officer of IBM?

Arvind Krishna is the Chairman and Chief Executive Officer of IBM. An electrical engineer and long-time IBM leader who joined in 1990, Krishna architected the $34 billion acquisition of Red Hat and has driven IBM's strategic focus on hybrid cloud and generative enterprise AI.

Where is IBM headquartered and what is its global workforce scale?

IBM is headquartered in Armonk, New York, with IBM Research labs in Yorktown Heights (Thomas J. Watson Research Center), Almaden (California), Zurich, Tokyo, Haifa, and Bangalore, among others. At December 31, 2025 it had about 264,300 employees in IBM and wholly owned subsidiaries, or 286,800 including partially owned subsidiaries and temporary workers.

What is watsonx and how does it serve enterprise artificial intelligence needs?

watsonx is IBM's enterprise-grade AI and data platform comprising three core components: watsonx.ai (studio for foundation models and generative AI), watsonx.data (scalable data lakehouse based on open formats), and watsonx.governance (enterprise AI compliance, transparency, and ethics lifecycle management).

Analysis: How International Business Machines Corporation Makes Money

Deep dive into the International Business Machines Corporation business model, revenue streams, and strategic moats in 2026.

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    Semiconductors

    Financial data on this page is sourced from SEC EDGAR filings, official earnings releases, and verified press statements. Revenue figures are reviewed and updated periodically. Read our full data methodology ->

    Primary source: www.sec.gov/Archives/edgar/data/51143/000005114326000027/ibm

    Explore More Brand Histories

    This corporate intelligence report on International Business Machines Corporation compiles data from verified filings. Explore more detailed brand histories and company histories in the global Enterprise technology marketplace.

    Full Company Directory ->

    Editorial Methodology

    Company Research

    We use company filings, annual reports, company statements and press reports, with primary sources preferred where available. Each financial row shows its recorded source. Full-year figures are separated from annualized run-rates, partial periods and forecasts; unaudited figures carry a label. Source detail varies by company, so check the linked material when the reporting basis matters.

    1. Primary Sources

    Public companies may provide filings and annual reports. Private-company figures may come from statements or press coverage. A missing figure stays missing, and a source link should identify where its number came from.

    2. Expert Curation

    We organize company records and review claims for strategic context, source quality and clarity. Pages show a review date where one is recorded.

    3. Multi-Pass Audit

    Technical checks flag inconsistent figures and missing links. Editorial review of the underlying source remains necessary for claims those checks cannot verify.

    Swet Parvadiya
    SEC filings & public records methodology
    Sourced from public financial records

    Explore Related Pages for International Business Machines Corporation

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    Sources & References

    The data and narrative synthesized in this intelligence report were verified against primary sources:

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