IBM Due Diligence

Run due diligence on IBM: check compliance and get alerts when suppliers change.

United States · www.ibm.com/cloud/dns · 27 vendors

International Business Machines Corporation (IBM) is an American multinational technology and consulting company headquartered in Armonk, New York. It provides integrated solutions leveraging information technology, deep knowledge of business processes, and focuses on hybrid cloud, artificial intelligence, quantum computing, and industry-specific solutions. IBM produces and sells computer hardware, middleware, and software, along with offering hosting and consulting services.

Resilience scores

Technology vendors

Services catalogue

42 services in catalogue across 10 categories; runs on 27 sub-vendors.

Insights

Last updated 2026-07-30 · revision 8

27 direct vendors, 247 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

10 in-scope frameworks identified; showing 3.

CSA STAR — Evidence found

Evidence: https://cloudsecurityalliance.org/star/registry, https://www.ibm.com/cloud/compliance

FedRAMP — Evidence found

Evidence: https://marketplace.fedramp.gov/products, https://www.ibm.com/cloud/compliance, https://www.ibm.com/cloud/government

GDPR (source) — Evidence found

Evidence: https://www.ibm.com/privacy, https://www.ibm.com/products/dns, https://www.ibm.com/cloud/compliance, https://www.ibm.com/support/customer/csol/terms/?id=i126-6883

Financials

Three-year financials

Financial Resilience Score: 7/10

IBM demonstrates solid financial resilience anchored by a strong recurring-revenue software mix (Red Hat, automation, data & AI), long-tenured enterprise and government customer relationships, and consistently strong free cash flow generation of $11-13B annually. The company's post-Kyndryl transformation has shifted the portfolio toward higher-margin software (~43% of revenue) and consulting (~33%), improving gross margins to ~56.7% in FY2024. Investment-grade credit ratings (A- / A3 area) and 29+ consecutive years of dividend increases underscore balance-sheet discipline and shareholder-friendly capital returns. However, resilience is tempered by slow top-line growth (only 1-2% annually in 2023-2024), high absolute debt levels (~$55B at end-2024, further increased by the HashiCorp acquisition), and large pension obligations that caused a ~$5.9B non-cash settlement charge in 2022. IBM also faces intense competition from hyperscalers (AWS, Azure, GCP), currency headwinds given ~50%+ non-US revenue, and cyclicality in its consulting business. Overall, IBM has the scale, cash generation, and diversification to weather downturns, but growth remains modest and leverage bears watching.

Key strengths: Strong free cash flow generation (~$11-13B/year), High-margin recurring software revenue mix (~43% of total), 29+ consecutive years of dividend increases (Dividend Aristocrat), Investment-grade credit ratings (A- / A3 area), Diverse global enterprise and government customer base, High switching costs in mainframe, middleware, and hybrid-cloud stacks, AI positioning via watsonx with $5B+ cumulative AI book of business

Risk factors: Slow top-line growth (1-2% annually), High absolute debt (~$55B end-2024) increased by HashiCorp acquisition, Large defined-benefit pension obligations (2022 $5.9B settlement charge), Consulting revenue cyclicality tied to enterprise IT spending, Intense competition from hyperscalers (AWS, Azure, GCP), Currency exposure with ~50%+ revenue outside US, Red Hat growth decelerating from 20%+ to low-teens

Revenue by geography

Revenue by product/service

Workforce by country

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