IBM is an American multinational technology corporation that specializes in computer hardware, middleware, and software.
It is the largest industrial research organization in the world, with 19 research facilities across a dozen countries.
IBM has a rich history, starting as the Computing-Tabulating-Recording Company (CTR) in 1911 and becoming a leading manufacturer of punch-card tabulating systems.
However, IBM began losing market dominance in the 1980s and has since focused on computer services, software, supercomputers, and scientific research.
With over 288,000 employees worldwide, IBM remains one of the world’s largest employers and is consistently ranked among the most recognizable, valuable, and admired brands.
Here’s a quick overview of the stats that will be covered:
- Key IBM Stats
- IBM Annual Revenue
- IBM Revenue By Region
- IBM Revenue By Segment
- IBM Acquisitions
- How Many People Work At IBM?
Key IBM Stats
- IBM operates in more than 175 countries.
- IBM had 4398 U.S. patents granted to them in 2022—the second most of any company.
- IBM generated $60.53 billion in the 2022 fiscal year.
- 288,300 employees work at IBM.
- IBM has a 9.2% share of the AI market.
IBM Annual Revenue
IBM generated a total revenue of $60.53 billion in 2022. Revenue increased by 6% from the previous fiscal year.
IBM’s revenue has shrunk at a CAGR of -1.79% over the last 20 years. Over the last 10 years the compound annual revenue growth is -5.19%
I have charted IBM’s annual revenue growth since 2002:
|
Fiscal Year |
Revenue |
|---|---|
|
2002 |
$81.19 billion |
|
2003 |
$89.13 billion |
|
2004 |
$96.29 billion |
|
2005 |
$91.13 billion |
|
2006 |
$91.42 billion |
|
2007 |
$98.79 billion |
|
2008 |
$103.63 billion |
|
2009 |
$95.76 billion |
|
2010 |
$99.87 billion |
|
2011 |
$106.92 billion |
|
2012 |
$104.51 billion |
|
2013 |
$99.75 billion |
|
2014 |
$92.79 billion |
|
2015 |
$81.74 billion |
|
2016 |
$79.92 billion |
|
2017 |
$79.14 billion |
|
2018 |
$79.59 billion |
|
2019 |
$57.71 billion |
|
2020 |
$55.18 billion |
|
2021 |
$57.35 billion |
|
2022 |
$60.53 billion |
Sources: IBM, FinanceCharts
IBM Revenue By Region
IBM provides a breakdown of revenue by region, which includes the Americas, Europe, the Middle East and Africa (EMEA) and Asia Pacific (APAC).
The Americas generated $31.1 billion US dollars in 2022 which is 51% of total IBM revenue for the year. Revenue from North, Central and South American clients has increased by 10% over the last year. This is greater than the global growth rate of 3.3%
Here’s a table showing revenue from IBM customers registered in the Americas since 2011:
|
Fiscal Year |
Revenue |
|---|---|
|
2011 |
$44.94 billion |
|
2012 |
$44.56 billion |
|
2013 |
$43.35 billion |
|
2014 |
$41.46 billion |
|
2015 |
$38.49 billion |
|
2016 |
$37.51 billion |
|
2017 |
$37.64 billion |
|
2018 |
$36.99 billion |
|
2019 |
$36.27 billion |
|
2020 |
$27.12 billion |
|
2021 |
$28.3 billion |
|
2022 |
$31.1 billion |
Source: IBM
Europe, the Middle East and Africa generated $17.95 billion US dollars in 2022. This is the second largest revenue region for IBM with 30% of annual revenue.
EMEA revenue for IBM is growing at 3% year over year. This is slower than IBM’s growth rate in the Americas.
Here’s a table showing revenue from IBM customers registered in the EMEA region since 2011:
|
Fiscal Year |
Revenue |
|---|---|
|
2011 |
$33.95 billion |
|
2012 |
$31.78 billion |
|
2013 |
$31.63 billion |
|
2014 |
$30.7 billion |
|
2015 |
$26.1 billion |
|
2016 |
$24.77 billion |
|
2017 |
$24.4 billion |
|
2018 |
$25.49 billion |
|
2019 |
$24.44 billion |
|
2020 |
$16.77 billion |
|
2021 |
$17.45 billion |
|
2022 |
$17.95 billion |
Source: IBM
The Asia Pacific region generated IBM $11.52 billion US dollars in 2022. Asia Pacific generated the least amount of revenue with 19% of IBM’s total revenue.
Revenue in the APAC region has decreased by 1% over the past year.
Here’s a table showing revenue from IBM customers registered in the APAC region since 2011:
|
Fiscal Year |
Revenue |
|---|---|
|
2011 |
$25.27 billion |
|
2012 |
$25.94 billion |
|
2013 |
$22.92 billion |
|
2014 |
$20.22 billion |
|
2015 |
$16.87 billion |
|
2016 |
$17.31 billion |
|
2017 |
$17.1 billion |
|
2018 |
$17.11 billion |
|
2019 |
$16.43 billion |
|
2020 |
$11.29 billion |
|
2021 |
$11.61 billion |
|
2022 |
$11.52 billion |
Source: IBM
IBM Revenue By Segment
IBM currently breaks down their revenue into 4 segments. They are Software, Consulting, Infrastructure and Financing.
Over the last 20 years IBM has shifted and their segments to align with business objectives and reporting. Some segments have even been separated into new business such as Kyndryl.
Because of the shift in segments, in this article we will only be covering the IBM Consulting and Software segments as they have been relatively consistent and are can be reported on more easily.
Software is the largest revenue stream for IBM and includes Software, Services, and Systems.
The software segment accounts for 41% of IBM’s total revenue in 2022 which is $25 billion. From 2021 to 2022 the software segment had a 7% increase.
Revenue from software had remained fairly flat over the last 10 years. Over the last 5 years, software revenue has increased at a CAGR of 2.4%
Here is a table showing IBM’s revenue from the software segment since 2012:
|
Fiscal Year |
Revenue |
|---|---|
|
2012 |
$25.45 billion |
|
2013 |
$25.93 billion |
|
2014 |
$25.43 billion |
|
2015 |
$22.93 billion |
|
2016 |
$22.71 billion |
|
2017 |
$22.84 billion |
|
2018 |
$22.21 billion |
|
2019 |
$22.89 billion |
|
2020 |
$22.93 billion |
|
2021 |
$23.43 billion |
|
2022 |
$25.04 billion |
Source: IBM
In 2021, IBM Global Business Services (GBS) was rebranded to IBM Consulting to make it more clear what the business segment actually does.
IBM Consulting had a revenue of $19.1 billion in 2022 which accounted for 32% of the company’s overall revenue.
IBM Consulting works with several partners such as Adobe, Oracle, Salesforce and SAP to accelerate business transformation.
Over the last 5 years IBM Consulting revenue has increased at a CAGR of 2.9%
Here is a table showing IBM’s revenue from the consulting segment since 2012:
|
Fiscal Year |
Revenue |
|---|---|
|
2012 |
$18.57 billion |
|
2013 |
$18.40 billion |
|
2014 |
$19.51 billion |
|
2015 |
$17.17 billion |
|
2016 |
$16.70 billion |
|
2017 |
$16.35 billion |
|
2018 |
$16.60 billion |
|
2019 |
$16.80 billion |
|
2020 |
$16.26 billion |
|
2021 |
$17.84 billion |
|
2022 |
$19.11 billion |
Source: IBM
IBM Acquisitions
IBM has acquired over 200 companies to date. The biggest acquisition by IBM has been Red Hat Inc on July 9th, 2019 for a staggering $34 billion.
IBM acquired 17 companies in 2010, the most in IBM’s recent history.
In 2016 IBM acquired the Salesforce consulting power house Bluewolf for $200 million to expand their Salesforce Consulting practice.
IBM’s most recent acquisition in 2023 was Apptio for 4.6 billion. Appito is a FinTech SaaS business that provides solutions for technology financial management, cloud financial management and enterprise agile planning.
Here is a table showing the number of acquisitions made by IBM since 2002:
|
Fiscal Year |
Number of acquisitions |
|---|---|
|
2002 |
12 |
|
2003 |
9 |
|
2004 |
14 |
|
2005 |
16 |
|
2006 |
13 |
|
2007 |
12 |
|
2008 |
15 |
|
2009 |
6 |
|
2010 |
17 |
|
2011 |
5 |
|
2012 |
11 |
|
2013 |
10 |
|
2014 |
6 |
|
2015 |
14 |
|
2016 |
15 |
|
2017 |
5 |
|
2018 |
2 |
|
2019 |
1 |
|
2020 |
7 |
|
2021 |
15 |
|
2022 |
8 |
Source: IBM
How Many People Work At IBM?
IBM is considered one of the best employers in the world and has 288,300 employees globally.
From 2021-2022 IBM added about 6,200 employees, which is a 2% year over year increase.
With 185,000 employees responding to IBM’s internal 2022 engagement survey, over 80% responded that they felt engaged at work.
Here is a table showing the number of employees working at IBM since 2002:
|
Fiscal Year |
Number of Employees |
|---|---|
|
2002 |
315,890 |
|
2003 |
319,270 |
|
2004 |
329,000 |
|
2005 |
329,370 |
|
2006 |
355,770 |
|
2007 |
386,560 |
|
2008 |
398,460 |
|
2009 |
399,410 |
|
2010 |
426,750 |
|
2011 |
433,360 |
|
2012 |
434,250 |
|
2013 |
431,210 |
|
2014 |
379,590 |
|
2015 |
377,760 |
|
2016 |
380,300 |
|
2017 |
366,600 |
|
2018 |
350,600 |
|
2019 |
352,600 |
|
2020 |
345,900 |
|
2021 |
282,100 |
|
2022 |
288,300 |
The average salary for IBM employees in the United States for 2022 was $86,845 per year but varied by department and role.
Among IBM employees working in the US on an H1-B visa in 2023, the median base salary is $117,042.
Sources: IBM, Zippia, H1B Salary Database
Conclusion
IBM is a prominent multinational technology corporation with a rich history and a strong presence in the global market. Despite facing challenges in the past, the company has successfully transitioned its focus towards consulting, software, infrastructure, and scientific research.
The company’s annual revenue reached $60.53 billion in 2022, with growth of 6% from the previous fiscal year.
IBM’s revenue is distributed across different regions, with the Americas contributing 51%, Europe, the Middle East, and Africa contributing 30%, and the Asia Pacific region contributing 19%.
The software segment accounts for the largest share of IBM’s revenue at 41%, followed by consulting at 32%.
IBM has made significant acquisitions over the years, including the notable acquisition of Red Hat Inc for $34 billion in 2019.
Overall, IBM continues to be a prominent player in the technology industry and is well-positioned for future growth and success.
FAQ
What does IBM Do?
IBM provides various services such as software and consulting in different areas. IBM remains focused on consulting, cloud, AI, software, quantum computing, and scientific research. It has a significant number of patents and has been responsible for several technological innovations.
IBM’s Watson technology platform, which uses natural language processing and machine learning, is applied across industries such as business, healthcare, developers, and universities.
Additionally, IBM is continuously investing in quantum computing and has developed powerful quantum processors.
The company also engages in strategic collaborations and acquisitions to enhance its offerings and market presence.
Research remains a fundamental part of IBM’s operations, contributing to its ongoing innovation and development.
What does IBM Stand For?
IBM stands for International Business Machines.
Why Is IBM Popular?
IBM is popular for its commitment to its employees and their well-being. The company places a strong emphasis on creating a positive work environment that fosters employee growth and development.
IBM provides a plethora of resources and opportunities to its employees, including training programs, mentorship initiatives, and career advancement prospects.
Additionally, IBM is known for its flexible work arrangements, allowing employees to maintain a healthy work-life balance.
The company also values diversity and inclusivity, promoting an inclusive culture where everyone feels respected and valued.
IBM’s dedication to its employees is evident through its competitive compensation and benefits packages, as well as its recognition programs that acknowledge outstanding performance and contributions.
Ultimately, IBM’s focus on its employees’ professional and personal growth contributes to a highly motivated workforce and a positive company culture.
