IBM Annual Revenue by Segment: FY 1991 – 2019

The above graph represents worldwide IBM annual Revenue by Segment. IBM worldwide revenue in 2018 reached $79.59 billion. Nearly 43.3% of the company’s total revenue ($34.46 billion) came from the Technology Services & Cloud Platforms segment. That’s a minimal 0.54% YoY increase, with growth in Infrastructure Services and Integration Software, offset by a decline in Technical Support Services.

This is followed by Cognitive Solutions, Global Business Services, Systems & Technology, Global Financing & others.

In 2018, IBM generated nearly $18.5 billion in revenue from the Cognitive Solutions and nearly $16.8 billion from the Global Business Services business segments. The Global Business Services revenue increased by 2.9% YoY in 2018. Led by key offerings in a digital and cloud application, The performance reflects the progress the company has made to reposition this business, with strong growth in Consulting.

Only about 10% of the company’s total revenue came from the Systems division, while nearly 2% came from the Global Financing division in the same year.

IBM’s System revenue (Systems Hardware + Operating Systems Software) decreased 2% YoY to reach $8,034 million in 2018.

On the other hand, Global Financing is a reportable segment that is measured as a stand-alone entity. Global Financing facilitates IBM clients’ acquisition of information technology systems, software and services by providing financing solutions in the areas where the company has the expertise while generating strong returns on equity.

IBM: Additional Information

IBM (International Business Machines Corporation) is an American multinational information technology company, headquartered in Armonk, New York.

In 1911, IBM was founded by Thomas J. Watson at Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and later in 1924, it was renamed “International Business Machines” (IBM). As a globally integrated enterprise, the company currently operates in more than 175 countries. As of 2018, the number of employees in IBM/wholly owned subsidiaries crossed 350,000.

The company’s business model is built to support two principal goals: helping enterprise clients to move from one era to the next by bringing together innovative technology and industry expertise, and providing long-term value to shareholders.

IBM’s business segments include Technology Services & Cloud Platforms, Cognitive Solutions, Global Business Services, Systems & Technology, Global Financing and others.

In 2018, for the 26th consecutive year, IBM was awarded more U.S. patents than any other company. IBM’s 9,100 patents awarded in 2018 represent a diverse range of inventions in strategic growth areas for the company. Of the 9,100 patents granted to IBM in 2018, more than 1,600 were related to AI and 1,400 to cybersecurity – more than any other company in either area.

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