IBM · 10-Q · 2026Q3 · Full report
Cash Flow And Capital Allocation
INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 65 · Surprise 48 · No source text
Nine-month operating cash flow increased 28.8% to $11,791 million from $9,153 million. IBM invested $11,364 million in acquisitions net of cash acquired and used $4,762 million for cash dividends during the first nine months of 2026. Cash, cash equivalents and restricted cash declined $4,359 million during the period to $9,282 million from $13,640 million at January 1. The filing separately identifies payments for property, plant and equipment and investment in software as investing uses, but the supplied statement does not show their dollar amounts.
Key facts
- Cash provided by operating activities was $11.8 billion in the first nine months of 2026, an increase of $2.6 billion versus the first nine months of 2025; free cash flow was $7.8 billion, an increase of $0.6 billion versus prior-year period. source
- In the first nine months of 2026, IBM generated $11,791 million in cash from operating activities, an increase of $2,639 million compared to the first nine months of 2025. source
- For the nine months ended September 30, net cash provided by operating activities was $11,791 million, net cash used in investing activities was $(13,539) million, net cash used in financing activities was $(2,402) million, and net change in cash, cash equivalents and restricted cash was $(4,359) million. source
- Net cash used in investing activities in the third quarter of 2026 increased $2.1 billion to $2.6 billion compared with the prior-year period. source
- Cash provided by operating activities was $4.0 billion in the third quarter of 2026, an increase of $0.9 billion versus the third quarter of 2025; free cash flow was $3.0 billion, an increase of $0.7 billion versus prior-year period. source
- Free cash flow for the nine months ended September 30, 2026 was $7,787 million, an increase of $606 million versus the prior-year period. source
- Net cash provided by financing activities was $0.6 billion in the third quarter of 2026, compared to net cash used in financing activities of $3.0 billion in the third quarter of 2025. source
- For the nine months ended September 30, 2026, net cash from operating activities per GAAP was $11,791 million and net cash from operating activities excluding Financing receivables was $8,986 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -8.7% | Net cash used in investing activities for the nine months ended September 30, 2026: $(13,539) million. |
| cash | positive | realized | +7.6% | Net cash provided by operating activities for the nine months ended September 30, 2026: $11,791 million. |
| cash | negative | realized | -2.8% | For the nine months ended September 30, net cash provided by operating activities was $11,791 million, net cash used in investing… |
| cash | positive | realized | +2.3% | Net cash provided by financing activities was $0.6 billion in the third quarter of 2026, compared to net cash used in financing activities… |
| cash | positive | realized | +1.7% | In the first nine months of 2026, IBM generated $11,791 million in cash from operating activities, an increase of $2,639 million compared… |
| cash | negative | realized | -1.6% | Net cash used in financing activities for the nine months ended September 30, 2026: $(2,402) million. |
| cash | negative | realized | -1.4% | Net cash used in investing activities in the third quarter of 2026 increased $2.1 billion to $2.6 billion compared with the prior-year… |
| cash | positive | realized | +0.6% | Cash provided by operating activities was $4.0 billion in the third quarter of 2026, an increase of $0.9 billion versus the third quarter… |
| cash | positive | realized | +0.5% | Cash provided by operating activities was $4.0 billion in the third quarter of 2026, an increase of $0.9 billion versus the third quarter… |
| cash | positive | realized | +0.4% | Cash provided by operating activities was $11.8 billion in the first nine months of 2026, an increase of $2.6 billion versus the first… |
| cash | positive | realized | — | For the nine months ended September 30, 2026, net cash from operating activities per GAAP was $11,791 million and net cash from operating… |