IBM’s International Market: Strong Growth Momentum



International revenue trends

IBM’s (IBM) international revenues, which include the EMEA (Europe, Middle East, and Africa) and Asia-Pacific regions, continue to generate strong business. On a combined basis, both of the regions contribute ~53% of IBM’s overall revenues.

In the last five quarters, the revenues from IBM’s international market grew at a CAGR (compound annual growth rate) of 1.7%—compared to a flat CAGR growth in the American region. In the above graph, you can see IBM’s international revenue growth.

IBM ended the second quarter with international revenues of nearly $10.8 billion—up 6.9% YoY (year-over-year) due to 10.3% growth YoY in the EMEA region. In the last five quarters, Microsoft (MSFT) and Oracle’s (ORCL) international revenue growth increased at a CAGR 9.1% and 3%, respectively.

Article continues below advertisement

Large order wins 

IBM continues to win large and small contracts across the European and Asian markets. In July, IBM sealed a deal worth $740 million from the Australian government. The company also secured a $500 million contract from Italy’s leading bank Banca Carige.

Even many upcoming startup firms like SmartRural and Blinking have struck deals with IBM to leverage its IoT (Internet of Things), blockchain, and AI technology, which are easily available in IBM cloud.

Developing the GDPR (General Data Protection Regulation) policy in Europe from May might also create opportunities for IBM to secure more contracts driven by its strong enterprise security environment.


More From Market Realist