IBM · 10-Q · 2026Q2 · Full report
R&D Investment in AI
INTERNATIONAL BUSINESS MACHINES CORP · 2026-07-23 · Importance 60 · Surprise 40 · No source text
IBM's research and development expense was $2.311 billion in the second quarter of 2026, increasing 10.2 percent year over year. First-half R&D expense was $4.485 billion, up 10.8 percent from the prior-year period and therefore exceeding the materiality growth threshold. IBM attributed the increase to organic and inorganic investments in innovation across AI, hybrid cloud and quantum.
Key facts
- Research and development expense for the three months ended June 30, 2026: $2,311 million, up 10.2% year-to-year; for six months: $4,485 million, up 10.8% source
- IBM Bob became generally available in March (IBM Bob, AI-based software development system became generally available in March). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -2.5% | Research and development expense for the three months ended June 30, 2026: $2,311 million, up 10.2% year-to-year; for six months: $4,485… |
| operating_income | negative | realized | -1.3% | Research and development expense for the three months ended June 30, 2026: $2,311 million, up 10.2% year-to-year; for six months: $4,485… |
| revenue | positive | realized | — | IBM Bob became generally available in March (IBM Bob, AI-based software development system became generally available in March). |