IBM's revenue fell from ~$99B to ~$55B. The turnaround story is that the line finally turned back up.
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✦ The bottom line
IBM made $67.5B in revenue in 2025, up 8% from $62.8B. That doesn't sound dramatic — until you know IBM's revenue fell for most of the 2010s, from roughly $99B in 2007 to ~$55B in 2020. After spinning off its slow-growth managed-infrastructure unit (Kyndryl) in 2021, IBM refocused on *software and AI* — and the top line is climbing again.
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✦ Teach me
Money coming in
IBM sells software (its fastest-growing, highest-margin business, including Red Hat), consulting (helping companies modernize), and infrastructure (mainframes and systems). The strategy is to tilt more and more toward software and AI.
The revenue number matters less for its size than for its direction. For a decade, IBM was a story of decline. The question every investor asks now: is the turnaround real, or a brief blip?
Wall Street calls this
Total revenue
A company growing after years of shrinking is a different investment than a steady grower. The whole IBM thesis rests on whether the *direction has genuinely changed* — so the multi-year revenue arc matters more than any single year.
Annual revenue · the long decline and the turn
$98.8B
$81.7B
$55.2B
$60.5B
$67.5B
2007
2015
2020
2022
2025
From $55B by 2020 (the 2021 Kyndryl spin-off reset the base lower), then a climb back to $67.5B. The decade-long slide has reversed.
Source · 10-K · Consolidated Income Statement · multi-year · FY2007–FY2025 · Filed Feb 24, 2026
A reversed trend is encouraging, but a turnaround has to keep delivering. The cleanest proof isn't the multi-year chart — it's whether the most recent year actually grew, and by how much. For IBM in 2025, the answer is the strongest growth in years.
Total revenue · fiscal year 2025
$67.5
B
Up 8% from $62.8B in 2024 — IBM's strongest growth rate since the turnaround began, led by its software and AI business.
Source · 10-K · Consolidated Income Statement · FY2025 · Filed Feb 24, 2026
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Watch
Revenue +8% to $67.5B — the decade-long decline has reversed. Encouraging, but the growth rate is still modest and the turnaround needs to keep proving itself.