Business Description

International Business Machines Corp. provides integrated solutions that combine information technology with business process knowledge. The company’s segments include Global Business Services, Cloud and Cognitive Software,  Global Technology Services, Systems, and Global Financing. Cloud and Cognitive Software segments provide clients with integrated data and cloud security and solutions. Global Business Services provides consulting, application management, and business process outsourcing services to clients.

Global Technology Services provides clients with comprehensive IT infrastructure and platform services that add business value. The Systems segment offers clients innovative infrastructure platforms that can meet the needs of enterprise AI workloads and hybrid cloud. Global Financing provides financing for clients, as well as commercial financing. It also participates in the remanufacturing of used remarketing and equipment. Charles Ranlett Flint and Thomas J. Watson Sr. founded the company. It is located in Armonk, NY.

Key Financials

Revenue (US$ Mn)

• US$ 57,350 Mn was the annual revenue generated by International Business Machines Corp. in 2021
• International Business Machines Corp.’s annual revenue for 2020 was US$ 73,620 Mn, a -4.57% decrease from 2019
• From 2018’s annual revenues, International Business Machines Corp. registered a -3.07% decrease in 2019, amounting to US$ 77,147 Mn
• Total revenue of US$ 79,590 Mn was generated in 2018 by International Business Machines Corp.

Operating Income (US$ Mn)

• International Business Machines Corp.’s operating income for 2021 was US$ 4,712 Mn, a -31.66% decrease from 2020
• The operating income generated by International Business Machines Corp. in 2020 was US$ 6,895 Mn
• At a -19.98% decrease, International Business Machines Corp.’s operating income of US$ 10,631 Mn was indexed in 2019
• International Business Machines Corp. generated an operating income of US$ 13,285 Mn in 2018

Net Income (US$ Mn)

• International Business Machines Corp.’s net income for 2021 was US$ 5,743 Mn, a 2.74% increase from 2020
• The net income generated by International Business Machines Corp. in 2020 was US$ 5,590 Mn
• At an 8.05% increase from, International Business Machines Corp.’s net income of US$ 9,431 Mn was indexed in 2019
• International Business Machines Corp. generated a net income of US$ 8,728 Mn in 2018

Operating Margin %

• International Business Machines Corp.’s operating margin for 2021 was 8%, a -12.77% decrease from 2020
• The operating margin generated by International Business Machines Corp. in 2020 was 9%
• At a -17.37% decrease from, International Business Machines Corp.’s operating margin of 14% was indexed in 2019
• International Business Machines Corp. generated an operating margin of 17% in 2018

Gross Margin %

• 55% was the gross margin generated by International Business Machines Corp. in 2021
• International Business Machines Corp.’s gross margin for 2020 was 48%, a 2.11% increase from 2019
• From 2018’s gross margins, International Business Machines Corp. registered a 1.94% increase in 2019, amounting to 47%
• A gross margin of 46% was generated in 2018 by International Business Machines Corp.

SWOT Analysis

Strengths

Focus on innovation

IBM’s primary focus is on R&D to expand its market reach by investing in new products and research. IBM has invested in R&D for the improvement of its products and to add new technologies. The company spent more than US$5 Billion in R&D activities during FY2019. IBM Research collaborates with clients and business units to develop near-term and medium-term innovations through global labs.

For the 27th consecutive fiscal year, IBM received 9,262 US patents. These patents cover a wide range of inventions in artificial Intelligence and Cognitive Computing, cloud, cybersecurity, as well as other strategic growth areas. IBM’s emphasis on innovation and intellectual propriety allows it to introduce new products, giving it a competitive advantage in an ever-changing technology market.

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