IBM had 15 of its federal contracts cancelled due to DOGE-related cuts during the first quarter of 2025, according to reporting from Reuters and Bloomberg. These cuts amount to $100 million in future payments, per Bloomberg. Federal contracts represent between 5% and just under 10% of IBM’s consulting practice.

The company was able to post a beat on earnings-per-share, and just barely beat on revenue vs. expectations.

Technology and consulting giant IBM (NYSE:IBM) reported in Q1 CY2025, but sales were flat year on year at $14.54 billion. Guidance for next quarter’s revenue was better than expected at $16.56 billion at the midpoint,