IBM net income worldwide 1999-2023

IBM achieved a net income of 7.5 billion U.S. dollars in 2023, a noticeable increase from the 1.64 billion U.S. dollars recorded in 2022. After experiencing a steady increase in net income over roughly a decade up to 2013, the company’s income over the past eight years has trended downward. Some of this can be attributed to a quickly evolving market environment. IBM is transforming its business amid industry-wide digital transformation, shifting away from being a hardware, software, and services company, towards becoming a cognitive solutions and cloud platform company. In 2016, IBM changed its segment reporting to reflect this shift, and realigned its software portfolio. 

Adjusting to the era of cloud computing

IBM is now focusing on hybrid and multi-cloud, as well as artificial intelligence (AI) to better align its portfolio to market demands, emphasizing strong integration between the two subjects. This combination is exemplified by IBM’s 34 billion U.S. dollar acquisition of AI open-source software company Red Hat that was completed in mid-2019. Other significant acquisitions include the data analytics and management services company Truven Health Analytics, and cloud object storage system company Cleversafe. IBM is aggressively expanding into cloud computing and data analytics, though it faces strong competition with cloud providers Alphabet and Amazon.