IBM adjusts software, consulting segment reporting

In a move to better align with market opportunities, International Business Machines Corp. (NYSE:IBM), a $231.6 billion technology giant and prominent player in the IT Services industry according to InvestingPro, has announced changes to its revenue reporting within its Software (ETR:SOWGn) and Consulting segments. This update, which was filed with the Securities and Exchange Commission today, will take effect starting in the first quarter of 2025.

The Armonk, New York-based technology giant stated that these changes will not affect its Consolidated Financial Statements or its overall reportable segments. Instead, the modifications are intended to provide a clearer picture of IBM ’s operations in relation to current market dynamics.

IBM also provided recast historical segment financials for the years 2024 and 2023, offering investors a retrospective view of its business through the new reporting lens. With trailing twelve-month revenue of $62.75 billion and a solid gross profit margin of 56.65%, the company maintains strong operational performance. This recast is accompanied by reconciliations of certain non-GAAP financial measures to the most directly comparable GAAP financial measures.

The company has made additional information available on its Investor Relations website, which includes the detailed financials and explanations regarding the updated reporting structure.

IBM’s decision to update its reporting categories reflects its strategic focus on addressing evolving market opportunities. This administrative change is part of IBM’s ongoing efforts to ensure that its disclosures are transparent and relevant to investors and market analysts.

The information contained in this report is based on a press release statement and has not been deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as indicated in the SEC filing. This means the disclosed adjustments are for informational purposes and do not carry the same legal weight as filed statements.

IBM’s shares are traded on the New York Stock Exchange under the ticker symbol IBM, currently trading near its 52-week high of $266.45 with a year-to-date return of 14%. For deeper insights into IBM’s valuation and growth prospects, investors can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports, which are available for over 1,400 US stocks.

In other recent news, IBM has announced its plans to acquire DataStax, a move aimed at enhancing its WatsonX portfolio and accelerating the use of generative AI within enterprises. This acquisition, expected to close in the second quarter of 2025, will enable businesses to unlock value from their unstructured data. Additionally, IBM received approval from the UK’s Competition and Markets Authority for its $6.4 billion acquisition of HashiCorp (NASDAQ:HCP), marking a significant step forward for the merger expected to close by the end of 2024. IBM has also expanded its collaboration with Juniper Networks (NYSE:JNPR) to integrate AI-driven network management solutions, leveraging Juniper’s Mist AI with IBM’s watsonx to optimize IT network management.

Furthermore, IBM has entered into a new agreement with Riyadh Air to implement its AI solutions, aiming to enhance the airline’s digital-first strategy. The collaboration is expected to position Riyadh Air as a leader in digital innovation within the aviation industry. In financial maneuvers, IBM has secured underwriting agreements for the issuance of multiple series of new debt securities, part of its broader financial strategy to manage its capital structure. The issuance includes both Euro and USD denominated notes with various maturity dates and interest rates, reflecting IBM’s proactive approach to financing. These recent developments underscore IBM’s strategic initiatives in AI and financial management.

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