IBM or International Business Machines Corporation (NYSE: IBM) is a multinational information technology and consulting company focused on hybrid cloud and AI solutions. IBM is one of the world’s largest employers with a global workforce of 297,800 (October 2022) and one of only 30 companies that constitute the Dow Jones Industrial Average. In FY2022, the company generated USD 60.5 billion in annual revenue. Following decades of innovation in computing systems and software, IBM spun off its legacy managed infrastructure services business into a new publicly traded company called Kyndryl (NYSE: KD) in November 2021. The move signaled a shift in focus to high-growth areas like cloud computing, data security, AI, and blockchain networks. In 2020, IBM topped the US patent list for the 28th consecutive year with 9,130 patents across the fields of AI, cloud, quantum computing, and cybersecurity, the most of any company.
IBM operates across four broad reporting segments: Software, Consulting, Infrastructure, and Financing. The company is best known for its software for hybrid cloud (which includes Red Hat, Automation, Data & AI, and Security software) and consulting services (which include business transformation, technology consulting, and application operations). Collectively, these two segments account for over 70% of IBM’s annual revenue.
In 2022, the Americas contributed ~51% of IBM’s total revenue and constituted the company’s largest market, followed by Europe, the Middle East, and Africa at ~30%. Moving forward, IBM remains focused on addressing a USD 1 trillion hybrid cloud and AI opportunity through a platform-centric approach and has prioritized investments and acquisitions in offerings aligned to its strategy, including IBM Software like Red Hat OpenShift and Red Hat Enterprise Linux (RHEL), IBM Cloud Paks, related IBM Consulting practices, and IBM Infrastructure. IBM expects to maintain mid-single-digit revenue growth (~USD 3 billion new revenue per year) and high single-digit free cash flow growth over 2022–2024. IBM targets to reach net-zero emissions by 2030.