The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

WMA 2024-IBM

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

WMAC 2023-IBM

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The essential guide to a sector that’s now attracting one out of every four startup investment dollars.

AI-Innovators-2023-IBM

Big Blue, based in Armonk, N.Y., was early to the AI game with Watson, which was first introduced over two decades ago, mesmerizing the world with what the tech could do. In 2023, the company launched its generative AI offerings, called Watsonx, with the conviction that the technology will bring about a productivity boom. CEO Arvind Krishna expects close to a third of current roles at the company can be taken over by AI and automation in the next five years, freeing up human staff for high-value work. The benefits from boosting productivity could mean reinvestment and larger margins, Krishna suggested. For its part, IBM’s Watsonx already has clients like NASA and Wix on board. The company also brings AI to clients to assist them with automation, modernization, and providing customer care services. For instance, Brazilian bank Bradesco automated its customer service answers using Watson Assistant, responding to 283,000 questions monthly. IBM is focusing on expanding the use of its AI where it is scalable and relevant, while strengthening its position beyond a legacy IT business; it has committed to <a class="waffle-rich-text-link" href="https://newsroom.ibm.com/2023-09-18-IBM-Commits-to-Train-2-Million-in-Artificial-Intelligence-in-Three-Years,-with-a-Focus-on-Underrepresented-Communities">training 2 million</a> people in AI over the next three years. It acquired software company Apptio in a $4.6 billion deal to complement its AI portfolio and Red Hat cloud business.

Fortune 50 AI Innovators

The 300 companies on this list are transforming industries from the inside out.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023 065 IBM_quantum-computers-and-accelerated-discovery_40645906341_o

Information technology company IBM delivered $60.5 billion in total revenue in 2022, with its hybrid cloud unit accounting for $22.4 billion of that sum. 
<ul> 
 	<li>Still, sales growth stagnated at the end of 2022, and IBM said it would cut about 3,900 jobs.</li> 
 	<li>In May 2023, IBM said it would give $100 million to the University of Chicago and the University of Tokyo to aid in the building of a quantum-centric supercomputer within a decade.</li> 
 	<li>A longtime A.I. leader, IBM stepped into the current ChatGPT-inspired frenzy in May 2023 by unveiling Watsonx, a platform that offers tools for building A.I. models and access to pretrained models that can generate code and text.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

WMAC-2022-46-IBM

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

Fortune's annual list dedicated to the idea that business is uniquely suited to address society’s biggest challenges.

CTW.1122. IBM

To help businesses adapt to climate-change-related disruptions, IBM recently launched its Environmental Intelligence Suite, software-as-a-service incorporating an extensive weather data set with powerful A.I. EIS is already being used by freight giant Norfolk Southern to fight freezes on rail lines, and by Brazilian biofuel maker BP Bunge Bioenergía to forecast high-risk areas for wildfires.

Change the World

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-IBM

IBM generated $57.4 billion in revenue from continuing operations in 2021, up from $55.17 billion in 2020. That’s not enormous growth, but it’s a step in the right direction for a company that has been coping for a decade with declining revenue from the IT-management and hardware businesses that used to be at its core. CEO Arvind Krishna has been working to bolster IBM’s presence in cloud software, business automation, and artificial intelligence. The company has recently won plaudits for its Environmental Intelligence Suite, an A.I.-powered system designed to help other companies manage their CO2 emissions and predict and prepare for climate-related threats.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-41-IBM

Our 2021 list of the 100 best companies to work for, as ranked by their employees. See which companies made the list.

100 Best Companies 2021-73-IBM

Big Blue was under new leadership in 2020 after Arvind Krishna took over for Ginni Rometty as CEO just after the pandemic shut down IBM offices around the world. Adding some of the most rigorous safety measures, IBM has not had a single known case of workplace transmission of COVID-19. The company also offered additional weeks of paid emergency leave for employees dealing with the pandemic and backup child and elder care options. IBM also joined with the U.S. government and other researchers attacking COVID-19 and provided free access to its supercomputers. IBM also reached out to offer resources to historically Black colleges and universities, and CEO Krishna backed specific legislative recommendations for Congress to address racial justice. The company’s “dedication to diversity seems to be consistently reflected in programs and initiatives, rather than just in statements of support,” an employee said. “Actions follow words in meaningful ways.”

Fortune 100 Best Companies to Work For

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500 121 IBM

International Business Machines’ big news in 2020 was the promotion of 30-year company executive Arvind Krishna to the CEO job, succeeding Ginni Rometty. IBM stock has been in a long swoon since 2013, even as the overall market has rocketed; the company needs a revised strategy, and Krishna has wasted little time pursuing one. In October 2020, he announced plans to spin off the business that manages IT infrastructure for other companies—IBM stock rose on the news—and he has been acquiring smaller businesses to build up IBM’s strength in cloud software for business automation. His strategic direction is no surprise; he had been following it even before he was CEO, championing IBM’s acquisition of the Red Hat enterprise software firm in 2019. Judging his success so far is difficult because the pandemic muddied comparisons with past performance.

These companies foster supportive cultures, where employees find opportunities for growth with help from their colleagues.

Best Large Workplaces New York 2021-IBM

Employees say: 
 
“IBM strongly believes in providing training opportunities to their employees. For example, it's mandatory for employees to take at least 40 hours of training in a given year. There is a very large selection of training courses to enroll in.”

Best Large Workplaces in New York

Caring leaders at the Best Workplaces in Technology have been preparing their companies to thrive as the business world emerges from the COVID downturn.

Best-Workplaces-in-Technology-Large-IBM

Employees say: 
“I do believe there is a very great level of work-life balance, especially since the pandemic has hit. Management teams are very compassionate and sympathetic to our needs.” 
Read the Great Place to Work review .

Best Large Workplaces in Technology

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-42-IBM

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-118-IBM

In 2019 IBM took the most dramatic step yet in its years-long project of adapting to a fast-changing tech environment, one in which Big Blue's historic dominance has been steadily eroded. In its largest acquisition ever, IBM spent $34 billion to buy Red Hat, the main distributor of the open-source operating system Linux. But progress on the company's top priorities—cloud computing, social engagement, mobile devices, and data analytics—has remained frustratingly slow, with revenue shrinking by 3% in 2019. This spring, however, the venerable computer giant got a new leader to take it forward. In April 2020, Arvind Krishna took the reins as CEO from Ginny Rometty, who had been serving in the role since 2012 and who remains executive chairman.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-038-IBM

In 2019 IBM took the most dramatic step yet in its years-long project of adapting to the fast-changing tech environment. It bought Red Hat, the main distributor of the open-source operating system Linux, paying $34 billion in its largest acquisition ever. But progress on CEO Ginni Rometty’s top priorities—cloud computing, social engagement, mobile devices, and data analytics—remained frustratingly slow. Revenue shrank; IBM’s Fortune 500 rank has declined every year for over a decade. In January 2020 the company announced that Rometty would step down after eight years as CEO, to be succeeded by longtime executive Arvind Krishna, who took over in April.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

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These 52 companies from across the globe are doing well by doing good.

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This year's Fortune 500 marks the 64th running of the list.

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This year's Fortune 500 marks the 63rd running of the list.

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This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

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Nike, Cisco, MasterCard, SABMiller, Vodafone, Google—and 45 other companies that are doing well by doing good.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Best Companies

Years on list

U.S. job openings

Year founded

Perks

100% health coverage

Unlimited sick days

Telecommuting

Job sharing

Subsidized childcare

Compressed work weeks

Fully-paid sabbaticals

On-site fitness/subsidized gym

On-site medical care facility

Non-discrimination policy includes sexual orientation

Sick days for part-timers

College tuition reimbursement

Student loan debt repayment

Paid Time Off: Full-time Employees

PTO limit (days)

# Sick days

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# of job applicants

Avg. # of applicants per opening

Change The World

Impact Segment

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Web Address

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Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Strongest Dimension

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Total Return

Total Return to Investors (last year)

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Total Return to Investors (10 year, annualized)

IBM is a cornerstone of U.S. business that is best known for its software, cloud computing services, and consulting. Incorporated in 1911, and later rebranded as International Business Machines, the company has ridden the many waves of innovation over the decades, from early technology such as tabulating machines, and time clocks for employee punch-ins, to today’s advancements in artificial intelligence. As of 2024, it was among just a few dozen companies to have appeared on the Fortune 500 every year since the list’s inception in 1955.

Q2 2026

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Q4 2024

International Business Machines (IBM): Company Profile, Stock Price, News, Rankings

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International Business Machines

international business machines

Welcome, and thank you for standing by. At this time, all participants are in a listen-only mode. Today's conference is being recorded. If you have any objections, you may disconnect at this time. Now, I will turn the meeting over to Olympia McNerney, IBM's Global Head of Investor Relations. Olympia, you may begin.

Thank you. I'd like to welcome you to IBM's First Quarter 2026 Earnings Presentation. I'm Olympia McNerney, and I'm here today with Arvind Krishna, IBM's Chairman, President, and Chief Executive Officer, and Jim Kavanaugh, IBM's Senior Vice President and Chief Financial Officer. We'll post today's prepared remarks and a replay of today's webcast on the IBM investor website within a couple of hours. The earnings presentation is already available. To provide additional information to our investors, our presentation includes certain non-GAAP measures.

For example, all of our references to revenue and signings growth are at constant currency. We provided reconciliation charts for these and other non-GAAP financial measures at the end of the presentation, which is posted to our investor website. Finally, some comments made in this presentation may be considered forward-looking under the Private Securities Litigation Reform Act of 1995.

These statements involve factors that could cause our actual results to differ materially. Additional information about these factors is included in the company's SEC filings. With that, I'll turn the call over to Arvind.

Thank you for joining us today. Let me start with our first quarter results and then provide context on what we are seeing across the business. IBM is off to a strong start to 2026. Revenue in the first quarter grew 6% and, combined with strong margin expansion, drove 13% growth in free cash flow. These results reflect the durability of our portfolio, the mission-critical nature of the work we do for clients, and the continued execution of our strategy. Let me first touch on the macro. While we are operating in a dynamic environment, Middle East developments didn't impact us in the first quarter.

Uncertainties remain, but our diversity across businesses, geographies, industries, and large enterprise clients position us well. Conversations we are having with clients remain consistent. Enterprises are investing in capabilities that increase resiliency, productivity, and accelerate growth. They are modernizing core systems.

They are scaling AI, and they're making deliberate choices about where workloads should run and who controls the infrastructure underneath them. These are structural priorities, and they align directly with IBM's strengths. This quarter's performance reinforces the strategic choices we have made over the last several years to advance IBM as a software-led hybrid cloud and AI platform company. Software revenue grew 8%, with Data and Red Hat growing double digits. Infrastructure grew 12%, with another record Z quarter up 48%.

We also had strong performance in distributed infrastructure as generative AI increases demand for our storage offerings. Consulting grew 1%, with momentum in enterprise data and business application transformations as clients modernize to deploy AI securely and at scale. The durability of our portfolio is a defining feature of IBM today. Let me spend a few minutes on AI.

Enterprises are still figuring out where to deploy this technology and where competitive advantage truly sits. Every major technology wave has followed a pattern. Value begins with infrastructure, moves to enabling platforms, and ultimately concentrates on the workflows where businesses operate. Right now, the spotlight is on foundation models. Enterprises are building portfolios, frontier models for some workloads, smaller models running on-premise for others, and open-source models where control and flexibility matter the most. Enterprises will want to retain control of their proprietary data.

AI will run everywhere, across public cloud, private and sovereign clouds, and on-premise. The core challenge is making all of this work together. This includes orchestrating across models, agents, and workflows, governing enterprise data, and securing these systems at scale. That is exactly where IBM operates.

We are building the platform that lets enterprises put AI to work on their terms, wherever it runs, whichever models they choose, and under governance they control. Our portfolio is built around world-class security, support, and integration for an enterprise environment. Red Hat provides a common open platform that lets enterprises run applications and AI consistently across any infrastructure. More AI adoption means more demand for open, flexible infrastructure. In automation, the logic is similar. Agents multiply applications, integrations, and execution paths.

Managing that sprawl requires a control plane to provision infrastructure, integrate applications, secure environments, and manage cost. This is what our end-to-end automation portfolio provides. In an AI-driven world, security risks are rising. IBM Concert identifies vulnerabilities proactively and automates remediation, helping enterprises maintain resilience at scale.

Our data business is seeing similar AI tailwinds. AI is only as good as the data it can access, and increasingly, that data is not static. It is generated continuously across transactions, applications, and interactions. To deliver real-time AI outcomes, data must be available in motion, governed, and delivered securely to models and agents wherever they're running. Confluent, which we closed this past quarter, solves that directly. It streams live governed data to models and agents across the hybrid environment, and the orchestration layer ties it together.

In a multi-model world, clients need to route between models, manage agent workflows, and maintain governance. That is what watsonx Orchestrate and our watsonx platform deliver. We have also created AI editions of critical software products like Db2, Cognos, and MQ. These embed agentic AI that can reason, act, and automate at scale while preserving IBM-grade security and trust.

Infrastructure remains a critical differentiator as AI moves into the core of enterprise operations. IBM Z delivers the lowest unit cost architecture at scale for workloads that require end-to-end encryption, continuous availability, and ultra-high throughput. Clients rely on our Z platform to process billions of transactions reliably with six to eight nines of availability. They run AI inferencing directly in line with those transactions. Our Spyre Accelerator lets clients run AI on 100% of their transaction volume without moving data off-platform, allowing them to embed AI directly into their transaction flows.

Financial services clients are using this for real-time fraud detection, saving tens of millions of dollars. At the same time, AI-assisted modernization, including code understanding, refactoring, and API integration, makes it easier to evolve applications without compromising the guarantees the platform provides. Our watsonx assistants for Z were made available over two years ago.

They help clients preserve the architectural strengths that deliver resilience, security, and scalability while making the platform more productive. Clients who have deployed watsonx Code Assistant for Z are growing MIPS capacity 3x faster than those who have not. In consulting, AI is both a growth driver and a productivity engine. As agents take on more work, delivery becomes faster, more software-driven, and more scalable. IBM is leaning into this shift through our Consulting Advantage Platform and unique integrated value sitting side by side with software.

This helps clients operationalize AI while improving our own efficiency. Demand continues to accelerate as clients move beyond experimentation and focus on transforming applications, data, and workflows to embed AI into core operation. All of this allows us to drive value for clients.

ServiceNow is leveraging watsonx for automated data quality and observability to deliver AI-ready data and code generation to refresh legacy applications to modern application runtimes, including ServiceNow. Visa continues to work with IBM on ongoing software and data modernization efforts, supporting the scale, resiliency, and performance of VisaNet. With Nestlé, we're using Nvidia-accelerated watsonx.data to embed AI directly into core order-to-cash operations, enabling faster real-time insights across Nestlé's global supply chain.

This highlights how quickly we can bring research to bear for commercial value. Nestlé was ideal for this proof of concept because of its strong digital backbone. In infrastructure, clients such as NatWest and RBC are modernizing their mainframe environments using AI and automation capabilities, including watsonx Assistant and watsonx Code Assistant for Z to improve resiliency, security, and developer productivity. We continue to accelerate organic innovation. IBM Bob, our AI-based software development system, is now generally available.

Our entire developer workforce is using Bob with average productivity gains of 45%. Bob automates the full software life cycle from legacy modernization to security using specialized agents and multi-model optimization. It drives developer productivity and predictable costs. We also introduced Sovereign Core, software that lets organizations run AI workloads under their own operational authority within a defined jurisdiction and auditable controls. We see sovereignty becoming a bigger factor in where and how workloads run. Every enterprise and every nation is waking up to the same reality.

They need AI and cloud infrastructure they control. Infrastructure no one can turn off or tamper with because of geopolitics. During the quarter, we also announced strategic collaborations with Nvidia, expanding our work across GPU-native analytics. In addition, we announced a strategic collaboration with Arm to expand how AI workloads run across IBM infrastructure.

By enabling the Arm software ecosystem within mission-critical environments like IBM Z, clients can scale AI closer to the data while preserving the security and resilience they require. These partnerships reflect our approach: open, flexible, and on the infrastructure clients choose. We continue to make progress in quantum and remain on track to deliver the first large-scale fault-tolerant quantum computer by 2029. Here are some signposts of progress.

In March, researchers used IBM quantum hardware to simulate a 300-atom system with the Cleveland Clinic, demonstrating that quantum computers can serve as reliable tools for pharmaceutical discovery. Another team accurately simulated real magnetic materials. Magnetism is central to new forms of energy and electrification. These are significant demonstrations to date that quantum computers can serve as reliable tools for scientific discovery. We also released a new blueprint for quantum-centric supercomputing that outlines the architecture for integrating quantum and classical systems at scale.

We strongly believe that our partners will achieve the first examples of quantum advantage this year, leveraging IBM hardware. In closing, we are executing on our strategy of accelerating revenue growth and delivering higher profitability. Given our strong start to the year, we remain confident in our ability to sustain revenue growth of 5%+ and grow free cash flow by about $1 billion this year. With that, let me hand it over to Jim to go through the financials.

Thanks, Arvind. In the first quarter, we delivered 6% revenue growth, 140 basis points of operating pre-tax margin expansion, 17% adjusted EBITDA growth, 19% diluted operating earnings per share growth, and $2.2 billion of free cash flow, growing 13% year-over-year, representing our highest first quarter free cash flow in a decade and free cash flow margin in reported history. This performance reflects the work we have done to strengthen our software-led platforms, deliver innovation value to clients, and the durability of our financial model. Now I'll dive deeper into our segment performance.

Software revenue grew 8%, marking a strong start to the year. This reflects the diversity of our portfolio, ongoing gen AI innovation, continued shift to higher growth end markets, and flexible consumption model. Our ARR was solid at $24.6 billion, up 10% since last year. Data revenue grew 16%, fueled by demand for our GenAI products, strength in our strategic partnerships, and inorganic contribution from DataStax and Confluent, which closed in mid-March.

Red Hat growth accelerated 2 points sequentially to 10%, largely driven by the stabilization of consumption-based services revenue growth that we expected. OpenShift is now a $2 billion ARR business with strong growth, and virtualization continues to gain traction, with over $600 million of contracts signed since the beginning of 2024. Automation grew 7%, with February marking the one-year anniversary of the acquisition of HashiCorp.

Over the last year, we have seen record HashiCorp bookings leveraging IBM's go-to-market scale and achieved adjusted EBITDA accretion ahead of expectations. Transaction processing grew again, up 2%, as we monetize on the strong z17 program. In infrastructure, our revenue grew 12% this quarter, with hybrid infrastructure up 25% and infrastructure support down 6%.

Within hybrid infrastructure, growth was broad-based with strong demand for our offerings across IBM Z, Power, and Storage. IBM Z continues to outperform prior programs, growing 48% this quarter. Clients are investing in IBM Z as they modernize mission-critical workloads, driven by requirements for resiliency, security, and compliance while enabling new AI capabilities on the platform. Distributed infrastructure grew double digits, with strength in both Power and Storage.

Power growth was driven by demand for Power11, with its resiliency and performance advantages supporting data-intensive workloads. In storage, growth reflected strong adoption of our new Flash offerings introduced in the first quarter, which incorporate industry-leading agentic AI capabilities. In consulting, our revenue grew 1% this quarter, reflecting momentum in the business as client demand continues to shift towards enterprise-wide transformation.

Signings returned to growth, up 6%, with strength across our application and data transformation offerings, driven by clients modernizing their environments to support AI adoption and capture value. Revenue growth was balanced across the portfolio, with both strategy and technology and intelligent operations up 1%. Generative AI is now firmly integrated across our consulting engagements, representing about 30% of our backlog. This reflects how generative AI has become embedded in the work we do.

Our differentiated asset-led delivery model continues to drive productivity and speed to value, combining deep domain expertise with software, automation, and reusable assets to help clients deploy AI securely and at scale. Let me now discuss profitability. Several years ago, we set an ambitious objective to reinvent our enterprise operations for greater speed, lower friction, and structurally lower cost.

International Business Machines (IBM) Q1 2026 Earnings Call Transcript

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