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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: July 24, 2024
(Date of earliest event reported)
INTERNATIONAL BUSINESS MACHINES CORPORATION
(Exact name of registrant as specified in its charter)
New York 1-236013-0871985
(State of Incorporation)(Commission File Number)(IRS employer Identification No.)
One New Orchard Road
Armonk, New York
10504
(Address of principal executive offices)(Zip Code)
914-499-1900
(Registrant’s telephone number)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Capital stock, par value $.20 per shareIBMNew York Stock Exchange
NYSE Chicago
1.125% Notes due 2024IBM 24ANew York Stock Exchange
2.875% Notes due 2025IBM 25ANew York Stock Exchange
0.950% Notes due 2025IBM 25BNew York Stock Exchange
0.875% Notes due 2025IBM 25CNew York Stock Exchange
0.300% Notes due 2026IBM 26BNew York Stock Exchange
1.250% Notes due 2027IBM 27BNew York Stock Exchange
3.375% Notes due 2027IBM 27FNew York Stock Exchange
0.300% Notes due 2028IBM 28BNew York Stock Exchange
1.750% Notes due 2028IBM 28ANew York Stock Exchange
1.500% Notes due 2029IBM 29New York Stock Exchange
0.875% Notes due 2030IBM 30ANew York Stock Exchange
1.750% Notes due 2031IBM 31New York Stock Exchange
3.625% Notes due 2031IBM 31BNew York Stock Exchange
0.650% Notes due 2032IBM 32ANew York Stock Exchange
1.250% Notes due 2034IBM 34New York Stock Exchange
3.750% Notes due 2035IBM 35New York Stock Exchange
4.875% Notes due 2038IBM 38New York Stock Exchange
1.200% Notes due 2040IBM 40New York Stock Exchange
4.000% Notes due 2043IBM 43New York Stock Exchange
7.00% Debentures due 2025IBM 25New York Stock Exchange
6.22% Debentures due 2027IBM 27New York Stock Exchange
6.50% Debentures due 2028IBM 28New York Stock Exchange
5.875% Debentures due 2032IBM 32DNew York Stock Exchange
7.00% Debentures due 2045IBM 45New York Stock Exchange
7.125% Debentures due 2096IBM 96New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 7.01. Regulation FD Disclosure.
Exhibit 99.1 of this Form 8-K contains the prepared remarks for IBM's Chairman and Chief Executive Officer Arvind Krishna and Chief Financial Officer Jim Kavanaugh's second-quarter 2024 earnings presentation to investors on July 24, 2024.
The slides for IBM's Chairman and Chief Executive Officer Arvind Krishna and Chief Financial Officer Jim Kavanaugh's second-quarter 2024 earnings presentation on July 24, 2024, are Exhibit 99.2 to this Form 8-K.
Reconciliations of non-GAAP financial measures discussed in the earnings presentation to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in Exhibit 99.2 to this Form 8-K.
The information in this Item 7.01, including the corresponding Exhibits 99.1 and 99.2, is being furnished with the Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
The following exhibits are being furnished as part of this report:

The following exhibit is being filed as part of this report:
Exhibit No.Description of Exhibit
104Cover Page Interactive Data File (embedded within the Inline XBRL Document)

IBM’s web site (www.ibm.com) contains a significant amount of information about IBM, including financial and other information for investors (www.ibm.com/investor/). IBM encourages investors to visit its various web sites from time to time, as information is updated and new information is posted.
2


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
Date: July 25, 2024
By:/s/ Nicolás A. Fehring
Nicolás A. Fehring
Vice President and Controller
3
1 Introduction Thank you. I’d like to welcome you to IBM’s second quarter 2024 earnings presentation. I’m Olympia McNerney, and I’m here today with Arvind Krishna, IBM’s Chairman and Chief Executive Officer, and Jim Kavanaugh, IBM’s Senior Vice President and Chief Financial Officer. We’ll post today’s prepared remarks on the IBM investor website within a couple of hours, and a replay will be available by this time tomorrow. To provide additional information to our investors, our presentation includes certain non-GAAP measures. For example, all of our references to revenue and signings growth are at constant currency. We’ve provided reconciliation charts for these and other non-GAAP financial measures at the end of the presentation, which is posted to our investor website. Finally, some comments made in this presentation may be considered forward looking under the Private Securities Litigation Reform Act of 1995. These statements involve factors that could cause our actual results to differ materially. Additional information about these factors is included in the company’s SEC filings. So with that, I’ll turn the call over to Arvind. Exhibit 99.1 IBM 2Q24 Earnings Prepared Remarks


 
IBM 2Q24 Earnings Prepared Remarks 2 CEO Perspective Thank you for joining us today to discuss IBM's second-quarter earnings. We delivered a strong quarter, exceeding our expectations, driven by solid revenue growth, profitability and cash flow generation. We had strong performance in Software and Infrastructure, above our model, as investment in innovation is yielding organic growth, while Consulting remained below model. Our results underscore the continued success of our hybrid cloud and AI strategy and the strength of our diversified business. Let me start with a few comments on the macroeconomic environment. Technology spending remains robust as it continues to serve as a key competitive advantage allowing businesses to scale, drive efficiencies and fuel growth. As we stated last quarter, factors such as interest rates and inflation impacted timing of decision making and discretionary spend in Consulting. Overall, we remain confident in the positive macro-outlook for technology spending but acknowledge this impact. It has been a year since we introduced watsonx and our generative AI strategy to the market. We have infused AI across the business. From the tools clients use to manage and optimize their hybrid cloud environments, to our platform products across .ai, .data and .gov, to Infrastructure and Consulting, you can find AI innovation in all of our segments. For example, in Software, our broad suite of automation products like Apptio and watsonx Orchestrate are leveraging AI and we expect to do the same with HashiCorp, once the acquisition is complete. Red Hat is bringing AI to OpenShift AI and RHEL AI. In Transaction Processing we’re seeing early momentum in watsonx Code Assistant for Z. In Infrastructure, IBM Z is


 
IBM 2Q24 Earnings Prepared Remarks 3 equipped with real time AI inferencing capabilities. And in Consulting, our experts are helping clients design and implement AI strategies. Our enterprise AI strategy is resonating as we evolve to meet client needs. Let me start by discussing IBM models. Choosing the right AI model is crucial for success in scaling AI. While large general-purpose models are great for starting on AI use cases, clients are finding that smaller models are essential for cost effective AI strategies. Smaller models are also much easier to customize and tune. IBM's Granite models, ranging from three billion to 34 billion parameters and trained on 116 programming languages, consistently achieve top performance for a variety of coding tasks. To put cost in perspective, these fit-for-purpose models can be approximately 90% less expensive than large models. Hybrid cloud remains a top priority for clients as flexibility of deployment of AI models across multiple environments and data sovereignty remain a key focus. We believe in the power of open innovation, and recently announced at IBM Think, that we open-sourced IBM’s Granite family of models, now available under Apache 2.0 licenses on both Hugging Face and GitHub. We see parallels to Linux becoming dominant in the enterprise server space thanks to the speed and innovation offered by open source. We are confident that the same dynamic will play out with AI as we benefit from developer mindshare and community innovation. We also recently launched InstructLab, a tool for more rapid model tuning through synthetic data generation, allowing our clients to more efficiently customize models using their own data and expertise. The last 12 months of AI pilots has made it clear that sustained value from AI requires truly leveraging enterprise data. In summary, our AI strategy is a comprehensive platform play. RHEL AI and OpenShift AI are the foundation of our Enterprise AI platform. They


 
IBM 2Q24 Earnings Prepared Remarks 4 combine open-source IBM Granite LLMs and InstructLab model alignment tools with full-stack optimization, enterprise grade security and support, and model indemnification. On top of that we have an Enterprise AI middleware platform with watsonx and an embed strategy with our AI assistants infused throughout our software portfolio and those of our ecosystem partners. In addition, our Consulting services are critical in helping clients build their AI strategies from the ground up. We also continue to see our Infrastructure segment play a larger role as clients leverage their hardware investments in their AI strategies. Our book of business related to generative AI now stands at greater than $2 billion inception to date. The mix is roughly one-quarter software and three-quarters consulting signings. We believe these strong results highlight our momentum and traction with clients. Our early leadership positions us for long-term success and this transformational technology, which is still in the initial stages of adoption. As clients build out AI strategies, the IT landscape is becoming increasingly complex. Labor demographic shifts further emphasize the importance of optimizing IT spend and automating business processes. We continue to innovate and invest and have created a leading automation portfolio to capture this opportunity which you can see in our results. This includes Apptio for cost management, capabilities for observability and resource management, and with the announced acquisition of HashiCorp, the automation of cloud infrastructure. The powerful combination of Red Hat's Ansible and Terraform will simplify provisioning and configuration of applications across hybrid cloud environments. The latest addition to this portfolio is IBM Concert – also announced at Think – a GenAI powered tool which helps clients get end-to-end visibility across business applications. We also recently completed the acquisition of the StreamSets and webMethods assets from Software AG. This acquisition


 
IBM 2Q24 Earnings Prepared Remarks 5 brings together leading capabilities in integration, API management and data ingestion. Let me now spend a minute on the continued strength we are seeing in Infrastructure. IBM Z, our mainframe solution, is an integral part of our clients' hybrid cloud environments, driving their most secure and mission critical workloads. Our latest cycle z16 is uniquely tailored to offer clients security, scalability and resiliency, which help clients address both cybersecurity threats and complex regulatory requirements. z16's Telum processor is a unique differentiator, driving real time, in-line AI inferencing at unprecedented speed and scale for applications like real time fraud detection. Our storage offerings are also benefitting from generative AI as clients address data readiness and need high-speed access to massive volumes of unstructured data. We continue to invest in innovation and make great progress in emerging technology like quantum computing. This quarter, we expanded Qiskit, IBM’s quantum computing software, into a comprehensive stack aimed at optimizing performance on utility-scale quantum hardware. These updates aim to enhance the stability, efficiency, and usability of Qiskit, supporting advanced quantum algorithm development and fostering broader adoption across various industries. This strong momentum and innovation across the portfolio manifests itself in client adoption. In virtually all industries and geographies, clients leverage IBM solutions to help them transform their operations and create better experiences for end-users. Names like Virgin Money, Crédit Mutuel and Panasonic all turned to IBM in the quarter. We also continue to strengthen our ecosystem. At our Think event, we announced a series of new AI partnerships with industry leaders like Adobe, AWS, Microsoft, Meta, Mistral, Salesforce and SAP. In May, IBM and Palo Alto Networks


 
IBM 2Q24 Earnings Prepared Remarks 6 announced a partnership to deliver AI-powered security solutions using watsonx. As part of this, Palo Alto is acquiring IBM's QRadar SaaS assets, and we are partnering to offer seamless migration for QRadar customers to XSIAM. IBM will also train over 1,000 security consultants on Palo Alto Network products to drive a significant book of business with them. In summary, we are excited to continue delivering strong results. Given our first half performance, we are raising our expectations for free cash flow to greater than $12 billion for the year. I will now hand over to Jim to walk you through the details of the quarter. Jim, over to you.


 
IBM 2Q24 Earnings Prepared Remarks 7 Financial Highlights Thanks Arvind. In the second quarter, we delivered $15.8 billion in revenue, $2.8 billion of operating pre-tax income and $2.43 operating diluted earnings per share. Our 4% revenue growth at constant currency combined with greater than 200 basis points of operating pre-tax margin expansion drove 17% operating pre-tax income growth and 11% operating diluted earnings per share growth, highlighting our strong execution. And through the first half, we generated $4.5 billion of free cash flow. Our free cash flow generation is the strongest first half level we have reported in many years. We are pleased with these results, exceeding our expectations for revenue, profitability, free cash flow and earnings per share. Revenue growth was led by Software and Infrastructure. It is clear that our investments in innovation are yielding results and driving strong organic growth across these segments. Software grew by 8%, with solid growth across Hybrid Platform & Solutions and Transaction Processing, and strong transactional performance. Infrastructure had great performance, up 3%, delivering growth across IBM Z and Distributed Infrastructure. Consulting was up 2% and continued to be impacted by a pullback in discretionary spending. Looking at our profit metrics, we expanded operating gross margin by 190 basis points and operating pre-tax margin by 220 basis points over last year, inclusive of about a 30-basis point currency headwind to pre-tax margin. Margin expansion was driven by our operating leverage, product mix and ongoing productivity initiatives. Driving productivity is core to our operating and financial model. This includes enabling a higher value workforce through automation and AI, streamlining our supply chain,


 
IBM 2Q24 Earnings Prepared Remarks 8 aligning our teams by workflow and reducing our real estate footprint. These actions allowed for continued investments in innovation, with R&D up 9% in the first half. This includes investments in both AI and hybrid cloud, as well as Infrastructure ahead of our next Z program in 2025, which we expect to accelerate our organic growth profile over time. Our results this quarter reflect broad-based growth and the strength in the fundamentals of our business, with revenue up about $300 million, operating pre-tax income up about $400 million, Adjusted EBITDA up more than $350 million and free cash flow up about $500 million. For the first half, we generated $4.5 billion of free cash flow, up $1.1 billion year over year. The largest driver of this first half growth comes from Adjusted EBITDA, up about $550 million year over year, and timing of capex. We are a few points ahead of our two-year average attainment levels through the first half. In terms of cash uses, we returned $3.1 billion to shareholders in the first half in the form of dividends. From a balance sheet perspective, we have a very strong liquidity position with cash of $16 billion, up $2.5 billion since year end 2023. Our debt balance at the end of the second quarter was flat with year-end 2023 at $56.5 billion, including $11.1 billion from our financing business. Putting this all together, our business fundamentals remain solid with continued revenue growth, margin expansion, cash generation and a strong balance sheet with financial flexibility to support our business.


 
IBM 2Q24 Earnings Prepared Remarks 9 Software Turning to the segments, Software revenue growth accelerated to 8% this quarter. Both Hybrid Platform & Solutions and Transaction Processing grew, as clients leverage the capabilities of our AI and hybrid cloud platforms. This performance reflects the investments we’ve been making in Software, both organically, which drove more than six points of the growth, as well as acquisitions. As mentioned in January, the Software revenue growth drivers for the year include Red Hat growth, the combination of innovation, recurring revenue and Transaction Processing, as well as acquisitions. Let me spend a minute on each of these elements. In Red Hat, annual bookings growth accelerated to over 20% this quarter. Within that performance, OpenShift annual bookings were up over 40% and RHEL and Ansible growth was double-digit. This strength reflects the demand for our hybrid cloud solutions, including app modernization, management automation, generative AI and virtualization. In a subscription-based business, the majority of revenue is under contract for the next two quarters – think of it as our cRPO for the next six months. This metric is growing in the mid-teens and accelerated more than five points versus the first half of the year. We continue to bring new innovation to our portfolio and it’s contributing nicely to our software performance. Our new innovation includes generative AI offerings like watsonx, our AI middleware, watsonx assistants, the recently announced IBM Concert and others, which contributed about half-a-billion dollars to our AI book of business inception to date. And we delivered good growth across our recurring revenue base, which is about 80% of annual software revenue. This is


 
IBM 2Q24 Earnings Prepared Remarks 10 evident in Hybrid Platform & Solutions where our ARR is now $14.1 billion, and up 9% since last year. Transaction Processing delivered 13% revenue growth. This performance demonstrates the innovation and value of our mission critical hardware stack across IBM Z, Power and Storage. The combination of growing demand for capacity, good client renewals and strong large deal performance fueled our results. And, notably, our new generative AI portfolio innovation, watsonx Code Assistant for Z, is resonating well with clients. Together, these dynamics contributed to both recurring and transactional software revenue growth again this quarter. Revenue performance this quarter also benefitted from our focused M&A strategy, including synergies realized across the portfolio. This included the recent Apptio acquisition. Less than 12 months since closing, we have accelerated annual bookings and are seeing an uptick in ARR growth, already in the mid-teens. The synergy between Apptio's FinOps offerings and our broader automation portfolio helps clients manage, optimize and automate technology spending decisions. Earlier this month, we completed the acquisition of StreamSets and webMethods from Software AG and expect the HashiCorp acquisition to close by year end. Looking at Software profit, gross profit margin expanded, and segment profit was up over 350 basis points year to year, with the latter reflecting operating leverage driven by our revenue scale and mix this quarter.


 
IBM 2Q24 Earnings Prepared Remarks 11 Consulting Our Consulting revenue was up 2%, consistent with last quarter and largely reflecting organic growth. In April, we discussed that we were seeing solid demand for our large transformational offerings as clients continue to prioritize driving productivity with AI and analytics. At the same time, we saw a pull back on discretionary projects as clients prioritized their spending. The second quarter buying behavior played out much in the same way. Signings for the quarter were $5.7 billion, driven by solid demand for large engagements across finance and supply chain transformation, cloud modernization and application development. This contributed to backlog growth of 5% year over year and our trailing twelve-month book-to-bill remaining over 1.15. Meanwhile, continued discretionary spending constraints impacted our small engagement performance and backlog realization in the quarter. As Arvind mentioned, our book of business in generative AI inception to date is greater than $2 billion, and about three-quarters of it represents consulting signings, with strong quarter over quarter momentum. Our extensive industry and domain expertise has placed us in an early leadership role, which is crucial at the onset of a technology shift. IBM has both technology and consulting, which is a unique and powerful combination to help clients navigate this technology transition. Similar to previous technology shifts, such as the advent of the internet, globalization, and cloud computing, generative AI is driving the next wave of growth. In a human capital-based business, signings represent clients re-prioritizing spend on this technology transition while there is some potential for lift as the total addressable market expands.


 
IBM 2Q24 Earnings Prepared Remarks 12 We are delivering value in two ways. First, partnering with our clients to design and scale AI solutions, whether that be leveraging AI capabilities of IBM, our partners, or a combination. Second, we are developing new ways of working, driving productivity and improving delivery, all with our Consulting Advantage platform. In summary, GenAI is acting as a catalyst for companies to grow revenues, cut costs and change the ways they work, creating a significant opportunity for us. We are seeing this already as IBM is the strategic partner of choice for clients using this technology including WPP, Elevance Health and the UK’s Department of Work and Pensions. Turning to our lines of business, Business Transformation revenue grew 6% led by finance and supply chain transformations. Data transformation also contributed to growth. In Technology Consulting, revenue was up 1%. Growth was driven by application modernization services. Application Operations revenue declined reflecting weakness in on-prem custom application management, partially offset by strength in cloud-based application management offerings. Looking at Consulting profit, we expanded gross profit margin by 40 basis points driven by productivity and pricing actions we have taken. Segment profit margin was modestly down reflecting continued labor inflation and currency.


 
IBM 2Q24 Earnings Prepared Remarks 13 Infrastructure Moving to Infrastructure, revenue was up 3%. We’re capitalizing on the strong and broad-based demand for our hardware platforms, especially IBM Z. Within Hybrid Infrastructure, IBM Z revenue was up 8% this quarter. We’re now more than two years into the z16 cycle and the revenue performance continues to outperform prior cycles. Our clients are facing increasing demands for workloads given rapid business expansion, the complex regulatory environment, and increasing cybersecurity threats and attacks. IBM Z addresses these needs with the combination of cloud- native development for hybrid cloud, embedded AI at scale, quantum-safe security, energy efficiency and strong reliability and scalability. Increasing workloads translates to more Z capacity or MIPS, which are up about three-fold over the last few cycles. IBM Z remains an enduring platform for mission critical workloads, driving both hardware and related software, storage and services adoption. In Distributed Infrastructure, revenue grew 5% driven by strength in both Power and Storage. Power growth was fueled by demand for data intensive workloads on Power 10 led by SAP Hana. Storage delivered growth again this quarter, including growth in high-end storage tied to the z16 cycle and solutions tailored to protect, manage and access data for scaling generative AI. Looking at Infrastructure profit, we delivered solid gross profit margin expansion and segment profit accelerated quarter-to-quarter to the high teens. Segment profit margin was down 230 basis points in the quarter, reflecting key investments we’re making in the business across areas like AI, hybrid cloud and quantum, and almost a point of impact due to currency.


 
IBM 2Q24 Earnings Prepared Remarks 14 Summary Now, let me bring it back to the IBM level to wrap up. We feel good about our performance in the first half with revenue growth reflecting the investments we’ve been making, both organically, as well as acquisitions. Our focus on execution and the strength in the fundamentals of our business resulted in strong performance in the quarter across revenue, margin expansion, and growth in profitability and earnings. Looking to the full year 2024, we are holding our view of revenue. We see full year constant currency revenue growth in line with our mid-single digit model, still prudently at the low end. For free cash flow, given the strength in our performance in the first half, we feel confident in raising our expectations to greater than $12 billion, driven primarily by growth in Adjusted EBITDA. This also includes a modest contribution resulting from the Palo Alto QRadar transaction, largely offset by related structural actions to address stranded costs. We continue to expect the QRadar transaction to close by the end of the third quarter. On the Segments, in Software, we had a solid first half performance, up more than 7%. This performance reflects strength in our recurring revenue base and early traction in GenAI. With this performance, we are raising our view of growth in Software to high-single digits for the year. And given ongoing productivity initiatives and operating leverage, we now expect Software segment profit margin to expand by over a point. In Consulting, given the continued pressure we have seen on spending related to discretionary projects, we now expect low single digit growth for the year and segment profit margin to expand by about half a point. And given the strength in Infrastructure in the first half, we now expect it to be about neutral for the year with segment profit margin in the mid to high teens.


 
IBM 2Q24 Earnings Prepared Remarks 15 With these segment dynamics, we are raising our expectations of operating pre-tax margin expansion to over half a point year to year. And we are maintaining our view of operating tax rate in the mid-teens range, consistent with last year. On currency, given the strengthening of the dollar, we now expect a 100 to 200 basis point impact to revenue growth for the year. For the third quarter, we see revenue growth consistent with the full year. For profit, we expect our net income skew through the third quarter to remain a couple points ahead of the prior year, driven by the strength of our business. And again, we expect the gain from the Palo Alto QRadar transaction will be offset by related structural actions to address stranded costs. In closing, we are pleased with our performance this quarter and for the first half, driving confidence in our updated expectations. We are positioned to grow revenue, expand operating profit and grow free cash flow for the year. Arvind and I are now happy to take your questions. Olympia, let’s get started.


 
IBM 2Q24 Earnings Prepared Remarks 16 Closing Thank you, Jim. Before we begin the Q&A, I’d like to mention a couple of items. First, supplemental information is provided at the end of the presentation. And then second, as always, I’d ask you to refrain from multi-part questions. Operator, let’s please open it up for questions.


 
July 24, 2024 ibm.com/investor 2Q 2024 Earnings Exhibit 99.2


 
Forward-looking statements and non-GAAP information Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on the company’s current assumptions regarding future business and financial performance. Those statements by their nature address matters that are uncertain to different degrees. Those statements involve a number of factors that could cause actual results to differ materially. Additional information concerning these factors is contained in the Company’s filings with the SEC. Copies are available from the SEC, from the IBM website, or from IBM Investor Relations. Any forward-looking statement made during this presentation speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements except as required by law; these charts and the associated remarks and comments are integrally related and are intended to be presented and understood together. In an effort to provide additional and useful information regarding the company’s financial results and other financial information as determined by generally accepted accounting principles (GAAP), the company also discusses, in its earnings press release and presentation materials, certain non-GAAP information including operating earnings and other “operating” financial measures, free cash flow, net cash from operating activities excluding IBM Financing receivables, adjusted EBITDA and adjustments for currency. The rationale for management’s use of this non-GAAP information is included as Exhibit 99.2 to the company’s Form 8-K submitted to the SEC on July 24, 2024. The reconciliation of non-GAAP information to GAAP is included in the press release within Exhibit 99.1 to the company’s Form 8-K submitted to the SEC on July 24, 2024, as well as on the slides entitled “Non-GAAP supplemental materials” in this presentation. To provide better transparency, the company also discusses management performance metrics including annual recurring revenue, annual bookings, signings, and book-to-bill. The metrics are used to monitor the performance of the business and are viewed as useful decision-making information for management and stakeholders. The rationale for management’s use of these performance metrics and their calculation, as well as other information including the definition of book of business, are included in Exhibit 99.2 to the company’s Form 8-K submitted to the SEC on July 24, 2024, or in the Management Discussion section of the company’s 2023 Annual Report, which is Exhibit 13 to the Form 10-K submitted with the SEC on February 26, 2024. For other related information please visit the Company’s investor relations website at: https://www.ibm.com/investor/events/earnings-2Q24 2


 
3 Arvind Krishna Chairman and Chief Executive Officer James Kavanaugh SVP, Finance & Operations and Chief Financial Officer


 
“We had a strong second quarter, exceeding our expectations, driven by growth in both revenue and free cash flow. We continue to see that clients turn to IBM for our technology and our expertise in enterprise AI, and our book of business for generative AI has grown to more than two billion dollars since the launch of watsonx one year ago. Given our first-half results, we are raising our full-year view of free cash flow, which we now expect to be more than $12 billion.” Arvind Krishna IBM Chairman and CEO 4 2Q24 Performance Investments, innovation and clients Generative AI CEO perspective


 
Financial highlights 5Revenue growth rates @CC $15.8B Revenue $4.5B Free cash flow ytd 2Q24 “In the quarter, we accelerated our revenue growth as we continue to execute well on our strategy. Our business fundamentals, operating leverage, product mix and productivity initiatives all contributed to significant margin expansion and increased profit and free cash flow. Our strong cash generation enables us to continue investing in innovation and expertise across the portfolio, while returning value to shareholders through dividends.” James Kavanaugh IBM SVP & CFO $1.1B Free cash flow ytd yr/yr 220bps Pre-tax margin expansion (operating) 11% Diluted EPS growth (operating) 4% Revenue growth 190bps Gross margin expansion (operating) 17% Pre-tax income growth (operating)


 
6 Revenue categories Red Hat +8% Automation +16% Data & AI (2%) Security +3% Software 2Q24 results; revenue growth rates @CC *Annual recurring revenue for Hybrid Platform & Solutions, growth rate @CC Transaction Processing +13% yr/yr Hybrid Platform & Solutions +6% yr/yr Strong revenue growth including 6+ points of organic contribution Accelerated Red Hat annual bookings growth and 6-month revenue under contract up mid-teens Solid and growing recurring revenue base; ARR* of $14.1 billion, +9% yr/yr Gross and segment profit margin expansion $6.7B Revenue +8% Revenue growth


 
7 Technology Consulting +1% yr/yr Consulting 2Q24 results; revenue growth rates @CC Revenue categories Application Operations (2%) yr/yr Business Transformation +6% yr/yr Growth driven by large transformational offerings Book-to-bill ratio of >1.15 for the last year Strong momentum in generative AI bookings Discretionary spend constraints continued to impact revenue realization $5.2B Revenue +2% Revenue growth


 
8 Infrastructure 2Q24 results; revenue growth rates @CC Revenue categories IBM Z +8% Distributed Infrastructure +5% Infrastructure Support (3%) yr/yr Hybrid Infrastructure +6% yr/yr IBM Z delivered growth, with z16 significantly ahead of prior cycles Installed MIPS capacity up ~3x over the last few cycles Distributed Infrastructure performance reflects strength in Power and storage Continued investment in innovation $3.6B Revenue +3% Revenue growth


 
9 Summary 2024 Expectations Revenue growth @CC in line with mid-single digit model Raising operating pre-tax margin expansion to over half a point Raising free cash flow to over $12 billion 2Q24 Summary Exceeded our expectations for key metrics Investments in innovation driving strong organic growth Generative AI continues to gain traction; book of business greater than $2 billion inception to date Operating leverage and productivity initiatives reflected in margin performance Strong first half free cash flow generation, +$1.1 billion ytd yr/yr


 
ibm.com/investor


 
Supplemental material 11Some columns and rows in these materials, including the supplemental exhibits, may not add due to rounding Revenue and P&L highlights Adjusted EBITDA performance Cash flow and balance sheet highlights Currency impact on revenue growth Software & Infrastructure segment details Consulting segment details Expense summary Balance sheet summary Cash flow summary Cash flow (ASC 230) Software segment categories Consulting segment categories Infrastructure segment categories Non-GAAP supplemental materials


 
Revenue and P&L highlights 12Revenue growth rates @CC, $ in billions Revenue highlights 2Q24 B/(W) Yr/Yr Revenue $15.8 4% Americas $8.0 (1%) Europe/ME/Africa $4.7 3% Asia Pacific $3.1 17% Operating P&L highlights $ 2Q24 B/(W) Yr/Yr Gross profit $9.1 5% Expense $6.3 (1%) Pre-tax income $2.8 17% Net income $2.3 14% Earnings per share $2.43 11% Adjusted EBITDA $4.0 10% Operating P&L highlights % 2Q24 B/(W) Yr/Yr Gross profit margin 57.8% 1.9 pts Expense E/R 40.1% 0.3 pts Pre-tax income margin 17.7% 2.2 pts Net income margin 14.4% 1.5 pts Tax rate 18.5% (2.1 pts)


 
Adjusted EBITDA performance 13 $ in billions *Corporate (gains) and charges primarily consists of unique corporate actions such as gains on divestitures QTD YTD 2Q24 Yr/Yr 2Q24 Yr/Yr Operating (non-GAAP) pre-tax income from continuing operations $2.8 $0.4 $4.4 $0.6 Net interest expense $0.2 ($0.0) $0.4 $0.0 Depreciation/Amortization of non-acquired intangible assets $0.7 $0.0 $1.4 $0.0 Stock-based compensation $0.3 $0.0 $0.6 $0.1 Workforce rebalancing charges $0.0 ($0.1) $0.4 $0.0 Corporate (gains) and charges* ($0.0) $0.0 ($0.2) ($0.2) Adjusted EBITDA $4.0 $0.4 $7.1 $0.5


 
Cash flow and balance sheet highlights 14 $ in billions *Non-GAAP financial measure; excludes Financing receivables **Non-GAAP financial measure; adjusts for Financing receivables and net capital expenditures Balance sheet Jun 24 Dec 23 Jun 23 Cash & marketable securities $16.0 $13.5 $16.3 Total debt $56.5 $56.5 $57.5 Select debt measures Jun 24 Dec 23 Jun 23 IBM Financing debt $11.1 $11.9 $10.6 Core (non-IBM Financing) debt $45.4 $44.7 $46.9 Cash flow 2Q24 YTD Yr/Yr Net cash from operations* $5.3 $0.9 Free cash flow** $4.5 $1.1 Select uses of cash 2Q24 YTD Yr/Yr Net capital expenditures $0.8 ($0.2) Acquisitions $0.2 ($0.1) Dividends $3.1 $0.1


 
Currency impact on revenue growth 15 Quarterly averages per US $ 1Q24 Yr/Yr 2Q24 Yr/Yr Spot 3Q24 4Q24 FY24 assumed Euro 0.92 1% 0.93 (1%) 0.92 0% 1% 0% Pound 0.79 4% 0.79 1% 0.77 2% 4% 3% Yen 148 (12%) 156 (14%) 156 (8%) (6%) (10%) Revenue impact, future @assumed Spot (2 pts) ~(1.5 pts) ~(1 pts) (1-2 pts) Prior view ~(2.5 pts) (1.5-2 pts) (1-1.5 pts) (1.5-2 pts) US $B Yr/Yr Revenue as reported $15.8 1.9% Currency impact ($0.3) (2 pts) Revenue @CC 3.8%


 
Software & Infrastructure segment details 16 Revenue growth rates @CC, $ in billions *Annual recurring revenue for Hybrid Platform & Solutions, growth rate @CC Software segment 2Q24 B/(W) Yr/Yr Revenue $6.7 8% Hybrid Platform & Solutions $4.6 6% Red Hat 8% Automation 16% Data & AI (2%) Security 3% Transaction Processing $2.2 13% Segment profit $2.1 21% Segment profit margin 31.3% 3.6 pts Annual recurring revenue* $14.1 9% Infrastructure segment 2Q24 B/(W) Yr/Yr Revenue $3.6 3% Hybrid Infrastructure $2.4 6% IBM Z 8% Distributed Infrastructure 5% Infrastructure Support $1.3 (3%) Segment profit $0.7 (11%) Segment profit margin 17.9% (2.3 pts)


 
Consulting segment details 17Revenue & signings growth rates @CC, $ in billions Consulting segment 2Q24 B/(W) Yr/Yr Revenue $5.2 2% Business Transformation $2.4 6% Technology Consulting $0.9 1% Application Operations $1.9 (2%) Gross profit margin 26.3% 0.4 pts Segment profit $0.5 (4%) Segment profit margin 8.9% (0.3 pts) Signings $5.7 (2%) Book-to-bill ratio (TTM) >1.15


 
Expense summary 18 $ in billions *includes acquisitions in the last twelve months net of non-operating acquisition-related charges and includes impact of closed divested businesses **represents the percentage change after excluding the impact of currency translation & hedges, acquisitions and divestitures Expense 2Q24 B/(W) Acq/ Yr/Yr Currency Divest* Base** Operating expense & other income $6.3 (1%) 1 pts (1 pts) (1 pts) impact of workforce rebalancing $0.0 2 pts SG&A – operating $4.7 Flat 1 pts (1 pts) 0 pts impact of workforce rebalancing $0.0 2 pts RD&E $1.8 (9%) 0 pts 0 pts (9 pts) IP and custom development income ($0.2) (3%) Other (income)/expense - operating ($0.3) 33% Interest expense $0.4 (1%)


 
Balance sheet summary 19 $ in billions *includes eliminations of inter-company activity Jun 24 Dec 23 Jun 23 Cash & marketable securities $16.0 $13.5 $16.3 Core (non-IBM Financing) assets* $105.3 $107.9 $103.4 IBM Financing assets $12.5 $13.9 $12.5 Total assets $133.8 $135.2 $132.2 Other liabilities $53.2 $56.1 $52.5 Core (non-IBM Financing) debt* $45.4 $44.7 $46.9 IBM Financing debt $11.1 $11.9 $10.6 Total debt $56.5 $56.5 $57.5 Total liabilities $109.7 $112.6 $109.9 Equity $24.1 $22.6 $22.3


 
Cash flow summary 20$ in billions QTD B/(W) YTD B/(W) 2Q24 Yr/Yr 2Q24 Yr/Yr Net cash from operations $2.1 ($0.6) $6.2 ($0.2) Less: IBM Financing receivables ($0.9) ($1.0) $1.0 ($1.1) Net cash from operations (excluding IBM Financing receivables) $3.0 $0.4 $5.3 $0.9 Net capital expenditures ($0.4) $0.1 ($0.8) $0.2 Free cash flow (excluding IBM Financing receivables) $2.6 $0.5 $4.5 $1.1 Acquisitions ($0.2) $0.2 ($0.2) $0.1 Divestitures - ($0.0) $0.7 $0.7 Dividends ($1.5) ($0.0) ($3.1) ($0.1) Non-IBM Financing debt ($4.2) ($3.0) $1.1 ($7.4) Other (includes IBM Financing net A/R & IBM Financing debt) ($0.1) $0.3 ($0.5) $0.6 Change in cash & marketable securities ($3.3) ($2.1) $2.5 ($5.0)


 
Cash flow (ASC230) 21$ in billions QTD QTD YTD YTD 2Q24 2Q23 2Q24 2Q23 Net income from operations $1.8 $1.6 $3.4 $2.5 Depreciation / amortization of intangibles $1.2 $1.1 $2.3 $2.2 Stock-based compensation $0.3 $0.3 $0.6 $0.6 Operating assets and liabilities / other, net ($0.3) ($0.4) ($1.1) ($0.8) IBM Financing A/R ($0.9) $0.1 $1.0 $2.0 Net cash provided by operating activities $2.1 $2.6 $6.2 $6.4 Capital expenditures, net of payments & proceeds ($0.4) ($0.5) ($0.8) ($0.9) Divestitures, net of cash transferred - $0.0 $0.7 $0.0 Acquisitions, net of cash acquired ($0.2) ($0.3) ($0.2) ($0.4) Marketable securities / other investments, net $2.8 $0.8 ($1.7) ($6.7) Net cash provided by/(used in) investing activities $2.2 $0.0 ($2.0) ($8.0) Debt, net of payments & proceeds ($2.9) ($1.1) $0.5 $6.2 Dividends ($1.5) ($1.5) ($3.1) ($3.0) Financing - other ($0.1) ($0.1) ($0.1) ($0.2) Net cash provided by/(used in) financing activities ($4.5) ($2.7) ($2.6) $3.0 Effect of exchange rate changes on cash ($0.1) ($0.0) ($0.2) ($0.0) Net change in cash, cash equivalents & restricted cash ($0.3) ($0.1) $1.4 $1.4


 
Software segment categories Revenue categories – FY 2023 Hybrid Platform & Solutions Transaction Processing Hybrid Platform & Solutions Software, infused with AI, to help clients operate, manage, and optimize their IT resources and business processes within hybrid, multi-cloud environments: – Red Hat: incl. RHEL, OpenShift, Ansible – Automation: incl. business automation, AIOps and management, integration, and application servers – Data & AI: incl. data fabric, customer care, data management, business analytics, dataops & governance, asset & supply chain management, and information exchange – Security: incl. software for threat, data and identity Transaction Processing Software that supports clients’ mission-critical on-premise workloads in industries such as banking, airlines and retail incl. transaction processing software such as Customer Information Control System and storage software, and analytics and integration software running on IBM operating systems (e.g., DB2 and WebSphere running on z/OS). Revenue categories Red Hat Data & AI Security Automation 22


 
Business Transformation Technology Consulting Application Operations Consulting segment categories Business Transformation Strategy, process design, system implementation and operations services to improve and transform key business processes. Deploys AI and automation in business processes to exploit the value of data and includes an ecosystem of partners alongside IBM technology, including strategic partnerships with Adobe, Oracle, Salesforce and SAP, among others. Technology Consulting Skills to architect and implement solutions across cloud platforms, including Amazon, Microsoft and IBM, and strategies to transform the enterprise experience and enable innovation, including transformation using AI with watsonx and application modernization for hybrid cloud with Red Hat OpenShift. Application Operations Manages, optimizes, orchestrates and secures custom applications and ISV packages for clients. Provides application management, platform engineering, and security services across hybrid cloud environments. Revenue categories – FY 2023 23 Revenue categories


 
Infrastructure segment categories Hybrid Infrastructure Innovative infrastructure platforms to help meet the new requirements of hybrid multi-cloud and enterprise AI workloads leveraging flexible and as-a-service consumption models: – IBM Z: incl. hardware and operating system – Distributed Infrastructure: incl. Power hardware and operating system, storage hardware, IBM Cloud IaaS, OEM asset recovery service Infrastructure Support Comprehensive, proactive and AI enabled services to maintain and improve the availability and value of clients’ IT infrastructure (hardware and software) both on-premises and in the cloud incl. maintenance for IBM products and other technology platforms. Hybrid Infrastructure Infrastructure Support Revenue categories – FY 2023 24 Revenue categories IBM Z Distributed Infrastructure


 
Non-GAAP supplemental materials Reconciliation of revenue performance – 2Q 2024 25 The above reconciles the non-GAAP financial information contained in the “Financial highlights”, “Revenue and P&L highlights” and “Prepared remarks” discussions in the company’s earnings presentation. See Exhibit 99.2 included in the company’s Form 8-K dated July 24, 2024, for additional information on the use of these non-GAAP financial measures. GAAP @CC Total revenue 2% 4% Americas (1%) (1%) Europe/ME/Africa 3% 3% Asia Pacific 9% 17% 2Q24 Yr/Yr


 
GAAP @CC Software 7% 8% Hybrid Platform & Solutions 5% 6% Red Hat 7% 8% Automation 15% 16% Data & AI (3%) (2%) Security 2% 3% Transaction Processing 11% 13% 2Q24 Yr/Yr GAAP @CC Consulting (1%) 2% Business Transformation 3% 6% Technology Consulting (3%) 1% Application Operations (4%) (2%) Infrastructure 1% 3% Hybrid Infrastructure 4% 6% IBM Z 6% 8% Distributed Infrastructure 3% 5% Infrastructure Support (5%) (3%) 2Q24 Yr/Yr Non-GAAP supplemental materials Reconciliation of segment revenue performance – 2Q 2024 26 The above reconciles the non-GAAP financial information contained in the “Software”, “Consulting”, “Infrastructure”, “Software & Infrastructure segment details”, “Consulting segment details” and “Prepared remarks” discussions in the company’s earnings presentation. See Exhibit 99.2 included in the company’s Form 8-K dated July 24, 2024, for additional information on the use of these non-GAAP financial measures.


 
Non-GAAP supplemental materials Reconciliation of expense summary – 2Q 2024 27 *Represents the percentage change after excluding the impact of currency translation & hedges, acquisitions and divestitures The above reconciles the non-GAAP financial information contained in the “Expense summary” discussion in the company’s earnings presentation. See Exhibit 99.2 included in the company’s Form 8-K dated July 24, 2024, for additional information on the use of these non-GAAP financial measures. Non-GAAP Operating GAAP adjustments (non-GAAP) SG&A Currency 1 pts 0 pts 1 pts Acquisitions/divestitures (1 pts) 0 pts (1 pts) Base* (1 pts) 1 pts 0 pts RD&E Currency 0 pts 0 pts 0 pts Acquisitions/divestitures 0 pts 0 pts 0 pts Base* (9 pts) 0 pts (9 pts) Operating expense & other income Currency 0 pts 0 pts 1 pts Acquisitions/divestitures (1 pts) 0 pts (1 pts) Base* (3 pts) 2 pts (1 pts) 2Q24


 
Non-GAAP supplemental materials Reconciliation of continuing operations – 2Q 2024 28 $ in millions (except EPS which is in whole dollars) The above reconciles the non-GAAP financial information contained in the “Revenue and P&L highlights”, “Expense summary” and “Prepared remarks” discussions in the company’s earnings presentation. See Exhibit 99.2 included in the company’s Form 8-K dated July 24, 2024, for additional information on the use of these non-GAAP financial measures. GAAP Acquisition- related adjustments Retirement- related adjustments Tax reform impacts Operating (non-GAAP) Gross profit $8,950 $170 — — $9,120 Gross profit margin 56.8% 1.1 pts — — 57.8% SG&A 4,938 (286) — — 4,651 Other (income) & expense (233) (18) (98) — (349) Total expense  6,730 (304) (98) — 6,328 Pre-tax income 2,219 474 98 — 2,792 Pre-tax income margin 14.1% 3.0 pts 0.6 pts — 17.7% Tax rate 17.5% 1.1 pts 0.3 pts (0.4 pts) 18.5% Net income 1,830 362 72 12 2,275 Net income margin 11.6% 2.3 pts 0.5 pts 0.1 pts 14.4% Earnings per share $1.96 $0.39 $0.08 $0.01 $2.43 2Q24


 
QTD YTD 2Q24 Yr/Yr 2Q24 Yr/Yr Net income as reported (GAAP) $1.8 $0.3 $3.4 $0.9 Less: Income/(loss) from discontinued operations, net of tax $0.0 $0.0 $0.0 $0.0 Income from continuing operations $1.8 $0.2 $3.4 $0.9 Provision for/(Benefit from) income taxes from continuing operations $0.4 ($0.0) ($0.1) ($0.7) Pre-tax income from continuing operations (GAAP) $2.2 $0.2 $3.3 $0.2 Non-operating adjustments (before tax) Acquisition-related charges* $0.5 $0.1 $1.0 $0.2 Non-operating retirement-related costs/(income) $0.1 $0.1 $0.2 $0.2 Operating (non-GAAP) pre-tax income from continuing operations $2.8 $0.4 $4.4 $0.6 Net interest expense $0.2 ($0.0) $0.4 $0.0 Depreciation/Amortization of non-acquired intangible assets $0.7 $0.0 $1.4 $0.0 Stock-based compensation $0.3 $0.0 $0.6 $0.1 Workforce rebalancing charges $0.0 ($0.1) $0.4 $0.0 Corporate (gains) and charges** ($0.0) $0.0 ($0.2) ($0.2) Adjusted EBITDA $4.0 $0.4 $7.1 $0.5 Non-GAAP supplemental materials Reconciliation of GAAP net income to adjusted EBITDA 29 $ in billions *Primarily consists of amortization of acquired intangible assets **Corporate (gains) and charges primarily consists of unique corporate actions such as gains on divestitures The above reconciles the non-GAAP financial information contained in the “Revenue and P&L highlights", "Prepared remarks” and “Adjusted EBITDA performance” discussions in the company’s earnings presentation. See Exhibit 99.2 included in the company’s Form 8-K dated July 24, 2024, for additional information on the use of these non-GAAP financial measures.


 
Non-GAAP supplemental materials Reconciliation of net cash from operations to adjusted EBITDA 30 $ in billions *Other assets and liabilities/other, net mainly consists of operating assets and liabilities/other, net in the “Cash flow (ASC230)” discussion, workforce rebalancing charges, non-operating impacts and corporate (gains) and charges The above reconciles the non-GAAP financial information contained in the “Prepared remarks” discussion in the company’s earnings presentation. See Exhibit 99.2 included in the company’s Form 8-K dated July 24, 2024, for additional information on the use of these non-GAAP financial measures. QTD QTD YTD YTD 2Q24 2Q23 2Q24 2Q23 Net cash provided by operating activities $2.1 $2.6 $6.2 $6.4 Add: Net interest expense $0.2 $0.2 $0.4 $0.4 Provision for/(Benefit from) income taxes from continuing operations $0.4 $0.4 ($0.1) $0.5 Less change in: Financing receivables ($0.9) $0.1 $1.0 $2.0 Other assets and liabilities/other, net* ($0.4) ($0.5) ($1.5) ($1.2) Adjusted EBITDA $4.0 $3.7 $7.1 $6.5


 
Non-GAAP supplemental materials Reconciliation of tax rate and Pre-tax income margin – FY 2024 expectations *Includes estimated discrete tax events for the year, actual events will be recorded as they occur The above reconciles the non-GAAP financial information contained in the “Prepared remarks” discussion in the company’s earnings presentation. See Exhibit 99.2 included in the company’s Form 8-K dated July 24, 2024, for additional information on the use of these non-GAAP financial measures. Tax rate GAAP Operating (Non-GAAP) Full-Year 2024* Mid-to-High Single Digits Mid Teens GAAP Operating (non-GAAP) Pre-tax income margin B/(W) B/(W) Pre-tax income margin Yr/Yr Flat >0.5 pts 31


 
ibm.com/investor


 
v3.24.2
Cover
Jul. 24, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 24, 2024
Entity Registrant Name INTERNATIONAL BUSINESS MACHINES CORPORATION
Entity Incorporation, State or Country Code NY
Entity File Number 1-2360
Entity Tax Identification Number 13-0871985
Entity Address, Address Line One One New Orchard Road
Entity Address, City or Town Armonk
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10504
City Area Code 914
Local Phone Number 499-1900
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000051143
Amendment Flag false
NEW YORK STOCK EXCHANGE, INC. | Common Stock  
Document Information [Line Items]  
Title of 12(b) Security Capital stock, par value $.20 per share
Trading Symbol IBM
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.125% Notes due 2024  
Document Information [Line Items]  
Title of 12(b) Security 1.125% Notes due 2024
Trading Symbol IBM 24A
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 2.875% Notes due 2025  
Document Information [Line Items]  
Title of 12(b) Security 2.875% Notes due 2025
Trading Symbol IBM 25A
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.950% Notes due 2025  
Document Information [Line Items]  
Title of 12(b) Security 0.950% Notes due 2025
Trading Symbol IBM 25B
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.875% Notes due 2025  
Document Information [Line Items]  
Title of 12(b) Security 0.875% Notes due 2025
Trading Symbol IBM 25C
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.300% Notes due 2026  
Document Information [Line Items]  
Title of 12(b) Security 0.300% Notes due 2026
Trading Symbol IBM 26B
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.250% Notes due 2027  
Document Information [Line Items]  
Title of 12(b) Security 1.250% Notes due 2027
Trading Symbol IBM 27B
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 3.375% Notes due 2027  
Document Information [Line Items]  
Title of 12(b) Security 3.375% Notes due 2027
Trading Symbol IBM 27F
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.300% Notes due 2028  
Document Information [Line Items]  
Title of 12(b) Security 0.300% Notes due 2028
Trading Symbol IBM 28B
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.750% Notes due 2028  
Document Information [Line Items]  
Title of 12(b) Security 1.750% Notes due 2028
Trading Symbol IBM 28A
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.500% Notes due 2029  
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Title of 12(b) Security 1.500% Notes due 2029
Trading Symbol IBM 29
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.875% Notes due 2030  
Document Information [Line Items]  
Title of 12(b) Security 0.875% Notes due 2030
Trading Symbol IBM 30A
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.750% Notes due 2031  
Document Information [Line Items]  
Title of 12(b) Security 1.750% Notes due 2031
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Document Information [Line Items]  
Title of 12(b) Security 1.250% Notes due 2034
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Document Information [Line Items]  
Title of 12(b) Security 3.750% Notes due 2035
Trading Symbol IBM 35
Security Exchange Name NYSE
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Document Information [Line Items]  
Title of 12(b) Security 4.875% Notes due 2038
Trading Symbol IBM 38
Security Exchange Name NYSE
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Document Information [Line Items]  
Title of 12(b) Security 1.200% Notes due 2040
Trading Symbol IBM 40
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 4.000% Notes due 2043  
Document Information [Line Items]  
Title of 12(b) Security 4.000% Notes due 2043
Trading Symbol IBM 43
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 7.00% Debentures due 2025  
Document Information [Line Items]  
Title of 12(b) Security 7.00% Debentures due 2025
Trading Symbol IBM 25
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 6.22% Debentures due 2027  
Document Information [Line Items]  
Title of 12(b) Security 6.22% Debentures due 2027
Trading Symbol IBM 27
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NEW YORK STOCK EXCHANGE, INC. | 6.50% Debentures due 2028  
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Trading Symbol IBM 28
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NEW YORK STOCK EXCHANGE, INC. | 5.875% Debentures due 2032  
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Trading Symbol IBM 32D
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 7.00% Debentures due 2045  
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Trading Symbol IBM 45
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 7.125% Debentures due 2096  
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Trading Symbol IBM 96
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NYSE CHICAGO, INC. | Common Stock  
Document Information [Line Items]  
Title of 12(b) Security Capital stock, par value $.20 per share
Trading Symbol IBM
Security Exchange Name CHX

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