International Business Machines (IBM) risk factors, FY2024 10-K

International Business Machines's FY2024 10-K, filed Feb 25, 2025, lists 27 risk factors in 5 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

Open IBM in Gloom →
International Business Machines' chart, financials and news, free in your browser.Open IBM in Gloom →
Risk factors listed
275 groups
Section length
5k wordsItem 1A

International Business Machines's biggest risks in the FY2024 10-K

  • AI and generative AI are central: IBM is investing, embedding them, and facing uncertain adoption, competition, legal, and reputational consequences.
  • Cybersecurity, privacy, AI, and data-protection rules create evolving threats, compliance costs, and critical-infrastructure obligations.
  • IBM’s global scale—175+ countries, approximately 60% non-U.S. revenue—exposes it to local conditions, currencies, suppliers, governments, and partners.

The risks most specific to International Business Machines

  • Risks Related to Our Business

    Failure of Innovation Initiatives Could Impact the Long-Term Success of the Company

    IBM’s hybrid cloud, AI, generative AI, quantum, and other technology bets may fail to differentiate it or attract developers.

  • Risks Related to Our Business

    Risks from Investing in Growth Opportunities Could Impact the Company’s Business

    Heavy AI and generative-AI investment faces uncertain client adoption, economic models, and intense competition.

  • Risks Related to Our Business

    Risks to the Company from Acquisitions, Alliances and Divestitures Include Integration Challenges, Failure to Achieve Objectives, the Assumption or Retention of Liabilities and Higher Debt Levels

    Acquisitions, alliances, and divestitures may fail to integrate or achieve objectives, while leaving IBM with liabilities or higher debt.

  • Risks Related to Our Business

    The Company Depends on Skilled Employees and Could Be Impacted by a Shortage of Critical Skills

    Competition for skilled technical, marketing, and staff personnel could limit IBM’s access to critical talent.

  • Risks Related to Our Business

    The Company’s Business Could Be Impacted by Its Relationships with Critical Suppliers

    Reliance on single or limited suppliers, including server processor semiconductor suppliers, could disrupt IBM’s offerings.

  • Risks Related to Our Business

    The Development and Use of AI and Generative AI, including the Company’s Increased Offerings and Use of AI-based Technologies, Could Impact the Long-Term Success of the Company and its Reputation or Give Rise to Legal or Regulatory Action

    IBM’s expanding AI development, products, services, and internal use could affect long-term success, reputation, or trigger legal and regulatory action.

  • Risks Related to Our Business

    The Company Could Be Impacted by Its Business with Government Clients

    Funding reductions, delays, or work stoppages by governmental customers could reduce demand for IBM products and services.

  • Risks Related to Our Business

    The Company’s Reliance on Third-Party Distribution Channels and Ecosystems Could Impact Its Business

    Financial or operational problems at distributors, resellers, software vendors, service providers, or ecosystem partners could limit IBM’s market access.

  • Risks Related to Cybersecurity and Data Privacy

    Cybersecurity, Privacy, and AI Considerations Could Impact the Company’s Business

    Criminal hackers, nation-states, competitors, and insiders or partners could cause cybersecurity and privacy incidents affecting IBM.

  • Risks Related to Cybersecurity and Data Privacy

    Although the company continuously takes significant steps to mitigate cybersecurity risk across a range of functions, such measures can never eliminate the risk entirely or provide absolute security

    Evolving cybersecurity, privacy, AI, and data-protection rules could increase costs and alter IBM’s compliance obligations, including for critical infrastructure.

All 27 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Business

  1. 01Downturn in Economic Environment and Client Spending Budgets Could Impact the Company’s Business
  2. 02Failure of Innovation Initiatives Could Impact the Long-Term Success of the Company
  3. 03Damage to IBM’s Reputation Could Impact the Company’s Business
  4. 04Risks from Investing in Growth Opportunities Could Impact the Company’s Business
  5. 05IBM’s Intellectual Property Portfolio May Not Prevent Competitive Offerings, and IBM May Not Be Able to Obtain Necessary Licenses
  6. 06Risks to the Company from Acquisitions, Alliances and Divestitures Include Integration Challenges, Failure to Achieve Objectives, the Assumption or Retention of Liabilities and Higher Debt Levels
  7. 07The Company’s Financial Results for Particular Periods Are Difficult to Predict
  8. 08Due to the Company’s Global Presence, Its Business and Operations Could Be Impacted by Local Legal, Economic, Political, Health and Other Conditions
  9. 09The Company May Not Meet Its Growth and Productivity Objectives
  10. 10Ineffective Internal Controls Could Impact the Company’s Business and Operating Results
  11. 11The Company’s Use of Accounting Estimates Involves Judgment and Could Impact the Company’s Financial Results
  12. 12The Company’s Goodwill or Amortizable Intangible Assets May Become Impaired
  13. 13The Company Depends on Skilled Employees and Could Be Impacted by a Shortage of Critical Skills
  14. 14The Company’s Business Could Be Impacted by Its Relationships with Critical Suppliers
  15. 15Product and Service Quality Issues Could Impact the Company’s Business and Operating Results
  16. 16The Development and Use of AI and Generative AI, including the Company’s Increased Offerings and Use of AI-based Technologies, Could Impact the Long-Term Success of the Company and its Reputation or Give Rise to Legal or Regulatory Action
  17. 17The Company Could Be Impacted by Its Business with Government Clients
  18. 18The Company’s Reliance on Third-Party Distribution Channels and Ecosystems Could Impact Its Business

Risks Related to Cybersecurity and Data Privacy

  1. 19Cybersecurity, Privacy, and AI Considerations Could Impact the Company’s Business
  2. 20Although the company continuously takes significant steps to mitigate cybersecurity risk across a range of functions, such measures can never eliminate the risk entirely or provide absolute security

Risks Related to Laws and Regulations

  1. 21The Company Could Incur Substantial Costs Related to Climate Change and Other Environmental Matters
  2. 22Tax Matters Could Impact the Company’s Results of Operations and Financial Condition
  3. 23The Company Is Subject to Legal Proceedings and Investigatory Risks

Risks Related to Financing and Capital Markets Activities

  1. 24The Company’s Results of Operations and Financial Condition Could Be Negatively Impacted by Its U.S. and non-U.S. Pension Plans
  2. 25The Company Is Exposed to Currency and Financing Risks That Could Impact Its Revenue and Business
  3. 26The Company’s Financial Performance Could Be Impacted by Changes in Market Liquidity Conditions and by Customer Credit Risk on Receivables

Risks Related to Ownership of IBM Securities

  1. 27Risk Factors Related to IBM Securities

Other International Business Machines 10-Ks

  • FY2025 10-K risk factors
    26 risks1 dropped2 reworded

    AI risk now emphasizes technologies producing unexpected outcomes, alongside IBM’s AI development, governance and management offerings.

    Filed Feb 24, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.