IBM

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 FY2023, the company generated USD 61.9 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. IBM ranked fourth in the number of US patents granted in 2023, with more than 3,650 patents, down from nearly 4,400 in 2022, when it ranked second and lost its top patent ranking after 29 consecutive years of being first.

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 74% of IBM’s annual revenue.

In 2023, the Americas contributed ~51.2% of IBM’s total revenue and constituted the company’s largest market, followed by Europe, the Middle East, and Africa at ~29.9%. Moving forward, IBM remains focused on addressing a USD 1.5 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.