IBM · 10-Q · 2026Q2 · Full report
Liquidity and Capital Position
INTERNATIONAL BUSINESS MACHINES CORP · 2026-07-23 · Importance 76 · Surprise 56 · No source text
Cash and cash equivalents declined to $7.172 billion at June 30, 2026 from $13.587 billion at December 31, 2025, while total cash, cash equivalents and restricted cash declined by $6.423 billion to $7.217 billion. Long-term debt increased to $56.212 billion from $54.836 billion, and short-term debt declined to $5.775 billion from $6.424 billion. During the first six months, IBM received $7.437 billion of new debt proceeds and repaid $7.141 billion of debt. The carrying value of long-term debt was $56.212 billion and its estimated fair value was $53.436 billion at June 30, 2026.
Key facts
- IBM's global credit facilities were $10.0 billion at or for June 30, 2026 and the company amended its $2.5 billion Three-Year and $7.5 billion Five-Year Credit Agreements on June 22, 2026 to extend maturities. source
- The company’s extended lines of credit to third-party entities included unused amounts of $2.3 billion at June 30, 2026 and $1.7 billion at December 31, 2025. source
- The company has committed to provide future financing to its clients in connection with client purchase agreements for $1.5 billion at June 30, 2026 and $1.9 billion at December 31, 2025. source
- IBM has no 'ratings trigger' provisions in its debt covenants or documentation and derivative contractual agreements could trigger termination if credit rating fell below investment grade; fair value of those instruments in a liability position was $595 million at June 30, 2026 before netting. source
- Cash and cash equivalents, restricted cash and marketable securities at June 30, 2026: $8.2 billion, decreased $6.3 billion from December 31, 2025 source
- Current assets decreased $8,546 million from year-end 2025 ($8,123 million adjusted for currency), primarily due to decline in cash and marketable securities and the Confluent acquisition. source
- Total equity increased $1,801 million from December 31, 2025, primarily driven by net income of $3,381 million and an increase in common stock issuances of $1,284 million, partially offset by dividends paid of $3,166 million. source
- Noncurrent assets at June 30, 2026 were $123,701 million compared to $114,936 million at December 31, 2025, an increase of $8,765 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +19.7% | Total equity increased $1,801 million from December 31, 2025, primarily driven by net income of $3,381 million and an increase in common… |
| assets | negative | realized | -5.6% | Current assets decreased $8,546 million from year-end 2025 ($8,123 million adjusted for currency), primarily due to decline in cash and… |
| cash | negative | realized | -4.1% | At June 30, 2026, cash and cash equivalents, restricted cash and marketable securities were $8,178 million, a decrease of $6,293 million… |
| assets | negative | realized | -3.8% | Working capital decreased $5,799 million from the year-end 2025 position. |
| liability | negative | committed | -1.3% | The company’s extended lines of credit to third-party entities included unused amounts of $2.3 billion at June 30, 2026 and $1.7 billion… |
| liability | negative | committed | -0.8% | The company has committed to provide future financing to its clients in connection with client purchase agreements for $1.5 billion at… |
| assets | positive | realized | +0.1% | Total assets at June 30, 2026: $152,099 million, increased $0.2 billion from December 31, 2025 ($1.3 billion adjusted for currency) |
| liability | negative | contingent | -0.1% | IBM has no 'ratings trigger' provisions in its debt covenants or documentation and derivative contractual agreements could trigger… |
| assets | negative | realized | — | IBM working capital at June 30, 2026 was $(7,514) million and the current ratio was 0.79:1. |