IBM · 10-Q · 2026Q2 · Full report

Acquisitions and Divestitures

INTERNATIONAL BUSINESS MACHINES CORP · 2026-07-23 · Importance 58 · Surprise 42 · No source text

IBM’s net intangible assets increased $2,564 million during the first six months of 2026, primarily from $3,834 million of acquired intangibles related to the Confluent acquisition in the first quarter. Goodwill increased $7,240 million to $74,599 million at June 30, 2026, with $7,152 million added to the Software segment and the additions primarily driven by Confluent. IBM recorded $1,535 million of intangible-asset amortization during the six months ended June 30, 2026, compared with $1,328 million in the prior-year period.

Key facts

• Acquisitions cash outflow for the six months ended June 30, 2026 was $(10,480) million. source
• Net cash used in investing activities for the six months ended June 30, 2026 was $(10,970) million, a decrease of $312 million compared to the prior-year period primarily due to lower purchases of marketable securities and proceeds from sale of marketable securities acquired in the Confluent acquisition, partially offset by higher cash used for acquisitions (Confluent vs HashiCorp prior year). source
• Acquisition signed on July 22, 2026 expected to close in second half of 2026, subject to regulatory approval and customary closing conditions; upon closing it will be integrated into the Infrastructure segment. source
• Goodwill total balance was $74,599 million at June 30, 2026. source
• Goodwill total balance was $67,717 million at January 1, 2026. source
• Acquisition-related charges (non-operating adjustments) for the six months ended June 30, 2026: $(126) million, up 43.2% year-to-year source
• The net carrying amount of intangible assets at June 30, 2026 was $13,955 million. source
• The net carrying amount of intangible assets at December 31, 2025 was $11,391 million. source

Impact estimates