IBM · 10-Q · 2026Q2 · Full report

Segment Profitability

INTERNATIONAL BUSINESS MACHINES CORP · 2026-07-23 · Importance 45 · Surprise 40 · No source text

Six-month total segment profit increased 9.9% to $7.392 billion, with the total segment profit margin expanding from 21.4% to 22.4%. Software segment profit increased 11.1% to $4.601 billion and its margin rose from 30.2% to 31.1%, while Consulting profit increased 7.5% to $1.205 billion and its margin rose from 10.8% to 11.4%. Infrastructure profit increased 12.1% to $1.360 billion and its margin expanded from 17.3% to 19.0%, while Financing profit declined 8.6% and its margin fell from 69.3% to 55.8%.

Key facts

• Income from continuing operations for the three months ended June 30, 2026: $2,166 million, down 1.2% year-to-year source
• Software segment profit for the three months ended June 30, 2026: $2,502 million, up 8.9% year-to-year; segment profit margin 32.2%, up 1.1 points source
• Pre-tax income from continuing operations for the three months ended June 30, 2026: $2,479 million, decreased 4.5% year-to-year; pre-tax margin 14.4% source
• Segment profit for Software for the three months ended June 30, 2026: $2,502 million. source
• Total reportable segment profit for the three months ended June 30, 2026: $4,092 million. source
• For the three months ended June 30, 2026, Software segment profit margin: 32.2%; Consulting segment profit margin: 12.1%; Infrastructure segment profit margin: 21.8%; Total segments profit margin: 23.9%. source

Impact estimates