v3.25.2
Revenue Recognition (Tables)
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of disaggregation of revenue
The following tables provide details of revenue by major products/service offerings and revenue by geography.
Revenue by Major Products/Service Offerings
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)2025
2024 (1)
2025
2024 (1)
Hybrid Cloud$1,796 $1,547 $3,483 $3,057 
Automation
1,883 1,620 3,467 3,012 
Data
1,499 1,378 2,736 2,550 
Transaction Processing
2,208 2,194 4,037 4,019 
Total Software$7,387 $6,739 $13,722 $12,637 
Strategy and Technology
2,920 2,895 5,702 5,757 
Intelligent Operations
2,395 2,284 4,680 4,608 
Total Consulting$5,314 $5,179 $10,382 $10,365 
Hybrid Infrastructure2,866 2,360 4,512 4,163 
Infrastructure Support1,275 1,285 2,515 2,558 
Total Infrastructure$4,142 $3,645 $7,027 $6,721 
Financing (2)
166 169 357 362 
Other (3)
(31)38 30 146 
Total revenue$16,977 $15,770 $31,519 $30,231 
(1)Prior-year amounts recast to reflect January 2025 changes to the reported revenue categories within Software and Consulting segments.
(2)Contains lease and loan financing arrangements which are not subject to the guidance on revenue from contracts with customers.
(3)Includes reductions in revenue for estimated residual value less related unearned income on sales-type leases, which reflects the new z17 launch in June 2025. Refer to note A, "Significant Accounting Policies," in the company's 2024 Annual Report for additional information.
Schedule of disaggregation of revenue by geography
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions)20252024 20252024
Americas$8,462 $7,979 $15,668 $15,275 
Europe/Middle East/Africa5,413 4,722 9,965 9,035 
Asia Pacific3,103 3,069 5,886 5,922 
Total$16,977 $15,770 $31,519 $30,231 
Schedule of reconciliation of contract balances
The following table provides information about notes and accounts receivable — trade, contract assets and deferred income balances.
(Dollars in millions)At June 30, 2025At December 31, 2024
Notes and accounts receivable — trade (net of allowances of $109 in 2025 and $114 in 2024)
$5,974 $6,804 
Contract assets (1)
$495 $433 
Deferred income (current)$15,022 $13,907 
Deferred income (noncurrent)$3,913 $3,622 
(1)Included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
Schedule of notes and accounts receivable - trade allowance for credit losses
The following table provides roll forwards of the notes and accounts receivable–trade allowance for expected credit losses for the six months ended June 30, 2025 and the year ended December 31, 2024.
(Dollars in millions)    
January 1, 2025Additions / (Releases)
Write-offs (1)
Foreign currency and otherJune 30, 2025
$114$(2)$(14)$11$109
January 1, 2024Additions / (Releases)
Write-offs (1)
Foreign currency and otherDecember 31, 2024
$192$(2)$(78)$2$114
(1)The majority of the write-offs during the period related to receivables which had been previously reserved.