IBM · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

INTERNATIONAL BUSINESS MACHINES CORP · 2026-07-23 · Importance 41 · Surprise 48

The GAAP continuing-operations tax provision declined 22.5% to $313 million in the second quarter of 2026 from $404 million in the prior-year quarter. For the first six months, the GAAP provision decreased to $484 million from $507 million, while the operating tax provision increased to $806 million from $766 million. The operating effective tax rate was 15.1% in the second quarter versus 17.0% in 2025 and 14.9% for the first six months versus 15.5%. IBM attributed tax-rate changes to geographic income mix, business operations, incentives, specific transactions, unrecognized tax benefits, audit settlements, and tax-law changes.

Key facts

• Deferred taxes at June 30, 2026: $8,709 million. source
• The operating (non-GAAP) provision for income taxes in the first six months of 2026 was $806 million, compared to $766 million in the first six months of 2025. source
• The continuing operations provision for income taxes for the first six months of 2026 was $484 million, compared to $507 million for the first six months of 2025. source
• The continuing operations provision for income taxes was $313 million in the second quarter of 2026, compared to $404 million in the second quarter of 2025. source
• The operating (non-GAAP) provision for income taxes was $498 million in the second quarter of 2026, compared to $545 million in the second quarter of 2025. source