IBM · 10-Q · 2026Q2 · Full report
Operating Cash Flow and Capex
INTERNATIONAL BUSINESS MACHINES CORP · 2026-07-23 · Importance 69 · Surprise 64 · In source text
Second-quarter operating cash flow increased $0.9 billion year over year to $2.6 billion, while free cash flow declined $0.3 billion to $2.5 billion. First-half operating cash flow increased $1.7 billion to $7.8 billion, while free cash flow was $4.8 billion and essentially flat year over year. IBM returned $1.6 billion to shareholders through dividends in the second quarter and $3.2 billion during the first half. Net cash used in financing activities was $5.7 billion in the quarter and $3.0 billion year to date, compared with a $2.6 billion source in the prior-year first half.
Key facts
- Net cash provided by operating activities in the first six months of 2026: $7.8 billion, an increase of $1.7 billion versus prior-year period source
- Net cash provided by operating activities for the six months ended June 30, 2026 was $7,766 million, investing activities used $(10,970) million, and financing activities used $(3,008) million; net change in cash, cash equivalents and restricted cash was $(6,423) million. source
- Net cash used in investing activities for the six months ended June 30, 2026: $(10,970) million, which included acquisition of businesses, net of cash acquired: $(10,480) million and purchases of marketable securities and other investments: $(2,871) million, offset by proceeds from disposition of marketable securities and other investments: $3,123 million. source
- IBM generated $7,766 million in cash from operating activities in the first six months of 2026, an increase of $1,695 million compared to the first six months of 2025. source
- Net cash from operating activities per GAAP for the six months ended June 30, 2026 was $7,766 million; net cash from operating activities excluding Financing receivables was $5,503 million. source
- Cash provided by operating activities in the three months ended June 30, 2026: $2.6 billion, and free cash flow: $2.5 billion source
- Net cash provided by operating activities for the six months ended June 30, 2026: $7,766 million. source
- Free cash flow in the first six months of 2026: $4.8 billion, essentially flat versus prior-year period source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -7.2% | Net cash provided by operating activities for the six months ended June 30, 2026 was $7,766 million, investing activities used $(10,970)… |
| cash | positive | realized | +5.1% | Net cash provided by operating activities for the six months ended June 30, 2026 was $7,766 million, investing activities used $(10,970)… |
| cash | negative | realized | -4.2% | Net cash provided by operating activities for the six months ended June 30, 2026 was $7,766 million, investing activities used $(10,970)… |
| cash | positive | realized | +3.2% | Free cash flow in the first six months of 2026: $4.8 billion, essentially flat versus prior-year period |
| cash | negative | realized | -2.0% | Net cash provided by operating activities for the six months ended June 30, 2026 was $7,766 million, investing activities used $(10,970)… |
| cash | positive | realized | +1.7% | Cash provided by operating activities in the three months ended June 30, 2026: $2.6 billion, and free cash flow: $2.5 billion |
| cash | positive | realized | +1.6% | Cash provided by operating activities in the three months ended June 30, 2026: $2.6 billion, and free cash flow: $2.5 billion |
| cash | positive | realized | +1.1% | Net cash provided by operating activities in the first six months of 2026: $7.8 billion, an increase of $1.7 billion versus prior-year… |