International Business Machines Corporation Revenue & Financials

$62.8 billion in FY2024 revenue, up from $61.9 billion in FY2023 and $60.5 billion in FY2022. The growth is consistent but not dramatic — a company executing a multi-year portfolio transition rather than riding a cyclical wave. The Kyndryl separation in 2021 removed approximately $19 billion in lower-margin managed infrastructure revenue, which is why the comparison to pre-2021 revenue figures is not straightforward. The software segment operates at gross margins around 80%. Consulting gross margins sit at 27-29% — lower, but strategically essential because consulting engagements drive software adoption. A client engagement that starts with a consulting project typically ends with multi-year software licensing agreements. The revenue mix between these two segments determines the blended margin profile. Market capitalization of $230 billion against $62.8 billion in revenue implies a 3.7x price-to-sales multiple — above the historical range for IBM, reflecting the market's willingness to price the Red Hat hybrid cloud thesis more generously than it priced the traditional services model. The Apptio acquisition in 2023 for an undisclosed price added IT financial management software that complements the Red Hat infrastructure layer. The quantum computing investment is the longest-horizon bet in the portfolio. IBM has been the most consistent commercial investor in quantum computing of any major technology company. The timeline to commercially relevant quantum advantage remains uncertain, but the intellectual property position being built is real and could represent significant value in a post-2030 computing environment.