IBM · 10-Q · 2026Q3 · Full report
Confluent Acquisition
INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 71 · Surprise 60 · Contradicted
IBM identified the Confluent acquisition as a first-quarter 2026 investment in innovation and software capabilities. Confluent contributed to third-quarter Software revenue growth, particularly Data revenue, which increased 19.1% year over year to $1.7 billion. Software annual recurring revenue increased approximately $2 billion year over year to $24.9 billion, reflecting Confluent and growth in other recurring businesses. Nine-month investing cash use included the Confluent acquisition and increased $1.8 billion year over year to $13.5 billion.
Key facts
- Net cash used in investing activities of $13.5 billion in the first nine months of 2026, which includes the investment in the acquisition of Confluent, increased $1.8 billion versus the prior-year period. source
- Additions of acquired intangibles primarily from Confluent in the first quarter of 2026: $3,834 million. source
- On March 17, 2026, IBM completed the acquisition of all outstanding shares of Confluent. source
- Confluent shareholders received $ per share in cash representing a total equity value of approximately $11.3 billion (Confluent acquisition total equity value approx. $11.3 billion). source
- Cash paid for outstanding Confluent common stock: $11,268 million. source
- Total consideration paid related to the Confluent acquisition: $11,602 million. source
- The company completed the acquisition of Confluent in the first quarter of 2026. source
- Goodwill of $7,158 million was assigned to the Software segment in connection with the Confluent acquisition. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +7.5% | Total consideration paid related to the Confluent acquisition: $11,602 million. |
| cash | negative | realized | -7.3% | Cash paid for outstanding Confluent common stock: $11,268 million. |
| assets | positive | realized | +5.7% | Noncurrent assets increased $8,884 million ( $9,594 million adjusted for currency) primarily due to an increase in goodwill and intangible… |
| assets | positive | realized | +4.6% | Goodwill of $7,158 million was assigned to the Software segment in connection with the Confluent acquisition. |
| assets | positive | realized | +2.5% | Additions of acquired intangibles primarily from Confluent in the first quarter of 2026: $3,834 million. |
| cash | negative | realized | -1.2% | Net cash used in investing activities of $13.5 billion in the first nine months of 2026, which includes the investment in the acquisition… |
| cash | positive | realized | +0.8% | As part of the Confluent assets acquired, IBM received $1,165 million of cash and cash equivalents at the acquisition date. |
| liability | positive | realized | +0.7% | On April 15, 2026, the $1,100 million of short-term debt related to convertible notes acquired from Confluent were settled. |