Tech and consulting giant IBM department was not safe from the government’s performance deductions.
According to the reporting, IBM canceled 15 federal agreements due to DOGE deductions during the first quarter of 2025. Reuters And Bloomberg. The amount of these deductions is 100 million in future payments, per Bloomberg. Federal contracts represent less than 10 % of IBM’s consulting exercises.
After asking questions on Wednesday during the IBM earning, IBM CEO Arvind Krishna made it clear that the cancellation was related to Kitbacks in USAID. Both IBMCFOs, Krishna and James Kavanov again proceeded to reduce the potential impact of the company on the company’s future business.
“We have a handful of agreements, either the work statement, or the cancellation, and the overall consultation on our annual back blog, more than $ 30 billion,” Kawanov said. “It’s like a million back blog for more than 100 years. So when no exception, we are focusing on monitoring the dynamic process of identity. We are cautious around the consultation for years.”
IBM’s consulting business contributed 34 % of the company’s income in Q1. Krishna added that the company’s federal government’s advice agreements are largely focused on important areas.
Krishna said, “The majority is the important thing.” We help to act [General Services Administration] Shopping We help implement the payroll system. I don’t think them is optional. Now, are there some areas around the edges that can be seen as discretion? Yes But in our case it is the minority of our business, not the majority. “
According to the company’s first quarter results, IBM’s consulting revenue in Q1 was 2 % lower. The revenue earned in Q1 was a bit of $ 5 billion.
“Diversity in our business gives us a good position to navigate the current climate,” Krishna said. “Our portfolio and execution track record reinforces my confidence in this next chapter of our development. I look forward to sharing my progress when we pass the rest of the year.”