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Rankings/IBM/Q2 2024 Analysis

International Business Machines Corp

IBM
Q2 2024(IBM Q1 FY2024)Estimated4% AI
AI Revenue %
4%
AI Fair Value
$5.3B
AI Revenue (Q)
$578.5M
Total Revenue (Q)
$14.5B
Source: SEC EDGAR SEC Filing Filing
View SEC Filing on SEC.gov

Analysis

IBM reported Q1 total revenue of $14,462M. In Q1 2024, IBM restructured its segments (removing Weather Company, realigning Security Services, changing profitability metrics). New Software sub-segments: Hybrid Platform & Solutions $4,098M and Transaction Processing $1,800M (total Software $5,899M). Consulting $5,186M, Infrastructure $3,076M, Financing $193M. No AI-specific revenue is disclosed in the filing. IBM's AI book of business (bookings) was reportedly approaching $2B cumulative by this point per earnings calls, but the SEC filing contains no such figure. watsonx is now ~3 quarters into general availability and ramping. AI consulting engagements growing. Conservative estimate: ~$578M AI revenue. $578M / $14,462M = 4.0%.
Analyzed by claude-opus-4-6

Quoted Figures

Total revenue $14,462M; Software $5,899M (HPS $4,098M, TP $1,800M), Consulting $5,186M, Infrastructure $3,076M, Financing $193M
Segment Information / Revenue Disaggregation
the company made changes to its organizational structure and management system to better align its portfolio to the market, increase transparency and improve segment comparability to peers
Basis of Presentation

AI Products Identified (Ring 1)

watsonx.aiwatsonx.datawatsonx.governanceWatson Orchestratewatsonx Code Assistant

AI-Enabled Items (Ring 2 — Not Counted)

These items use AI but are not counted in the AI revenue estimate because they primarily serve non-AI functions.

Red Hat OpenShift AIIBM Consulting AI practiceHybrid Platform & Solutions

Confidence Tier

EstimatedNo direct AI revenue disclosure — estimated from product mix