Summary
IBM has announced a strategic update to its revenue reporting structure, effective first quarter of 2025. The company is modifying its revenue categories within the Software and Consulting segments to better align with current market opportunities and its business strategies. Importantly, this change is purely an internal reporting adjustment and will not affect IBM's overall Consolidated Financial Statements or the performance of its reportable segments. Investors can find detailed information, including recast historical segment financials for 2024 and 2023, as well as reconciliations of non-GAAP financial measures, on IBM's Investor Relations website via Exhibit 99.1 attached to this Form 8-K.
Key Highlights
- 1IBM is updating its revenue reporting categories for Software and Consulting segments starting Q1 2025.
- 2The changes aim to better reflect market opportunities and IBM's strategic approach.
- 3These are internal reporting adjustments and do not impact Consolidated Financial Statements.
- 4Reportable segments' overall financial performance remains unaffected by this change.
- 5Recast historical segment financials for 2024 and 2023 are available.
- 6Reconciliations for certain non-GAAP financial measures are provided.
Frequently Asked Questions
IBM is updating how it categorizes revenue within its Software and Consulting segments to better align with market dynamics and its strategic response to those markets.
No, this is a change in reporting structure only. IBM's Consolidated Financial Statements and the overall performance of its reportable segments will not be impacted.
Detailed information, including recast historical segment financials for 2024 and 2023, is available on IBM's Investor Relations website, as provided in Exhibit 99.1 to this Form 8-K.
Yes, the filing includes reconciliations of certain non-GAAP financial measures to their most directly comparable GAAP measures, providing transparency on how these adjustments are handled.