IBM had 15 of its federal contracts canceled 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.

Despite first quarter 2025 results that beat analyst estimates, IBM's stock price is still down as DOGE cuts thwarted $100 million in future revenue.

We’ve had a handful of contracts, either statement of work, or cancel and on our annualized backlog of over $30 billion in total consulting”