IBM is a technology company focused on hybrid cloud and AI for large enterprises. IBM's two core businesses are software (~45% of revenue) and consulting (~30% of revenue), with the remainder split between infrastructure (~20%) and financing. IBM's software portfolio is built around Red Hat — acquired in 2019 — which includes Red Hat Enterprise Linux (RHEL), OpenShift (a container platform for hybrid cloud environments, now ~$1.9B ARR growing 30%+), and Ansible (IT automation). Beyond Red Hat, IBM's software includes automation tools, the watsonx AI platform for building and deploying AI models, and transaction processing software that runs mission-critical workloads on IBM mainframes. About 80% of IBM's software revenue is recurring, with ARR exiting 2025 at ~$23.6B. IBM's consulting business helps large enterprises design and execute technology transformations around AI, hybrid cloud, and application modernization. IBM's infrastructure segment sells mainframe computers (IBM Z), distributed servers, and storage — a cyclical business tied to mainframe upgrade cycles every 3–5 years. IBM's customers are large enterprises and governments across banking, insurance, healthcare, and the public sector, including 95% of the Fortune 500. IBM's long-term strategy is to shift its revenue mix toward higher-margin recurring software, growing software from ~25% of revenue in 2018 to ~45% in 2025, and IBM has pursued M&A to build out its automation and data portfolios, including HashiCorp, Apptio, and the announced acquisition of Confluent.