Evaluating IBM’s Geographical Regions

International Business Machines (IBM) has maintained stable revenue growth across its Americas region in the last five quarters. The Americas region dominates the company’s overall business by contributing around 48.0% of its total revenues.

In the last five quarters, the revenues from the Americas region grew at a CAGR (compound annual growth rate) of 1.2%. Strong and innovative product pipelines, coupled with the growing demand for cloud services, helped the company boost its presence in the region. Increasing trends of digital transformation across diversified enterprises is also driving business for IBM.

We can see from the graph above the revenue trend in the Americas region in the last five quarters. In 4Q17, IBM posted higher revenues, buoyed by the seasonal trends.

In 4Q17, revenues from the region came in at nearly $10.8 billion, increasing 4.9% YoY (year-over-year). At the end of fiscal 2017, the company garnered $37.5 billion from the American market.

The EMEA (Europe, Middle East, and Africa) region is also gaining strong momentum driven by strong growth in France, Spain, the Middle East, and Africa. However, this growth was offset by softness in the UK and Germany. In 4Q17, IBM generated $7.2 billion in revenues, up 7.5% YoY. In the last five quarters, the revenues from the region increased at a CAGR of 1.8%.

Accenture’s (ACN) European market grew at a CAGR of 3.9% in the last five quarters. This growth provides an incentive for IBM to strengthen its European market.

IBM’s revenues from the Asia-Pacific region fell 2.2% YoY to $4.5 billion due to declining revenues in China. In the last five quarters, its revenues from the region declined at a CAGR of 0.5%.