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INTERNATIONAL BUSINESS MACHINES CORP 8-K Report, Regulation FD Disclosure (Mar 12, 2025)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed March 12, 2025
Period End
March 12, 2025
Security
IBM
In the record · 2016–202610-K1110-Q328-K210

IBM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 210 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’20Jul ’20
  2. Leadership change8-K · Jan ’23Jan ’23
  3. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed March 12, 2025. Cited figures are marked; the original filing is the authoritative source.

On March 12, 2025, IBM filed an 8-K under Item 7.01 (Regulation FD) announcing changes to how it reports revenue categories within its Software and Consulting reportable segments, effective the first quarter of 2025.

The company states these changes do not affect its Consolidated Financial Statements, its reportable segments, or the overall scope of either segment. The purpose is to align reporting with market opportunities, core strategy, and underlying business models, and to give investors more relevant information. The 2025 guidance given at IBM's February Investor Day already reflected these changes.

In Software, IBM will report Hybrid Cloud (formerly Red Hat, with no change to product scope), Automation (now including HashiCorp, identity and access management, threat management, and sustainability), Data (now including business automation and data security, and renamed from Data & AI), and Transaction Processing (now including zSecure). The Hybrid Platform & Solutions and Security categories are discontinued as reported revenue lines. In Consulting, IBM will report Strategy and Technology (formerly Technology Consulting and Business Transformation, excluding business process operations) and Intelligent Operations (formerly Application Operations plus business process operations).

For investors, the filing is primarily a reporting-presentation change rather than a change in economics. Exhibit 99.1 provides recast 2024 and 2023 segment financials so analysts can update models before the first-quarter 2025 earnings report in April.

The recast 2024 figures show Software revenue of $27,085Ma (up 9% at constant currency) and Consulting revenue of $20,692M (up 1% at constant currency). Investors should note that growth rates for the new categories are not comparable to the old ones, so historical trend analysis must rely on the recast figures.

02—Key points

Key Highlights

  1. IBM is restructuring revenue categories within Software and Consulting, effective Q1 2025, with no impact on consolidated financial statements or reportable segments.
  2. Software now reports Hybrid Cloud, Automation, Data, and Transaction Processing; Hybrid Platform & Solutions and Security are no longer reported as revenue lines.
  3. HashiCorp moves into Automation, and identity/access management and threat management shift from Security into Automation.
  4. Consulting now reports Strategy and Technology and Intelligent Operations, replacing Technology Consulting, Business Transformation, and Application Operations.
  5. Recast 2024 Software revenue is $27,085M (up 9% at constant currency); recast 2024 Consulting revenue is $20,692M (up 1% at constant currency).
  6. Recast historical financials for 2023 and 2024 were published to help analysts update models ahead of the April 2025 Q1 earnings report.
  7. The 2025 guidance from IBM's February Investor Day already incorporated these category changes, so no guidance revision is implied.

03—Questions

Frequently Asked Questions

  1. Does this reclassification change IBM's total revenue or earnings?

    No. IBM states the changes do not impact its Consolidated Financial Statements or its reportable segments, and there is no change to consolidated results. The changes affect only how revenue is categorized within the Software and Consulting segments.

  2. Why did IBM make these changes?

    IBM says the changes better align its portfolio with its core strategy and underlying business models, reflect market opportunities and how it addresses them, and provide more relevant information to investors.

  3. Where can investors find the recast historical numbers?

    The recast 2024 and 2023 segment financials, along with non-GAAP reconciliations, are in Exhibit 99.1 to the 8-K and on IBM's Investor Relations website (www.ibm.com/investor/).

  4. Are the 2025 guidance figures affected by this change?

    The 2025 guidance provided at IBM's February 2025 Investor Day already reflected the new revenue category structure, so the reclassification is not a change to the outlook.

  5. Can growth rates in the new categories be compared with prior-period reported growth rates?

    Not directly. Because revenue has moved between categories (for example, HashiCorp into Automation and Business Automation from Automation into Data), growth rates for the new categories should be assessed using the recast historical figures rather than previously reported category numbers.

04—Continue

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