CLAIM #31319 · IBM (IBM) · 2025Q3 earnings call · Oct 22, 2025 · due Dec 31, 2026
“Part of our model for software is we'll get a couple of points of growth from acquired revenue and we see a good market for targets, yes, that is yet to play out.”
Arvind Krishna · CEO
How to check this claim
Look at: Contribution of acquired revenue to software segment revenue growth (percentage points)
It came true if: Acquired revenue contributes approximately 2 percentage points (1.5-3.0 pts) of software revenue growth
Where: Company earnings call commentary / segment revenue disclosures (10-K/10-Q software segment discussion)
In context
“call it low single digits for sure into next year. Automation has been growing in this last quarter at 22%. Yes, the HashiCorp acquired revenue was a piece of it. And as you point out, that'll go away in the second quarter. However, the acquired properties we have tend to provide continued growth for quite a while. Because of the Hashi bookings, which are significantly ahead of where we had planned them to be, I expect we'll continue to see growth out of Hashi through 2026 as well. Now not quite as much as an acquired growth, but I do expect that we'll continue to see automation in the double digits for sure. If but maybe not north of '20. And we've continued to see the data and AI portfolio grow in the mid to high single digits. Now that does put aside what other acquisitions we will do. Part of our model for software is we'll get a couple of points of growth from acquired revenue and we see a good market for targets, yes, that is yet to play out. But in the current regulatory environment, combined with what we can see out there, expect that we should be able to do that as well. So that was sort of giving you color on the portfolio and the different pieces I'll ask Jim to get into them closing it back up in terms of sort of what is the organic and inorganic and overall software numbers. Jim Kavanaugh: Yeah. Thanks, Ben, for the question overall. I mean, obviously, we are a software-centric platform company overall. So it's at the heart of both our top-line growth factor profile and also more importantly, from a free cash flow, generation engine overall. It delivers about three-quarters of our profit. And you take a look at '25, I think we positioned extremely well with regards to accelerating revenue growth through our throughout t”
Verify independently
SEC filings for IBM ↗ · Claim quote is verbatim from the 2025Q3 earnings call.