IBM · News · 20261022N

Operating Expense Trends

INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 39 · Surprise 50

IBM attributed the stronger quarter and cash outlook partly to productivity initiatives and improved operating execution. Productivity actions contributed to a 70-basis-point expansion in operating pre-tax margin during the third quarter. Management said adjusted EBITDA growth and productivity initiatives would support free cash flow, partially offsetting higher capital expenditures, cash taxes, and interest expenses. The reported operating margin remained 16.8% year over year, indicating that efficiency gains helped absorb these cost pressures.