IBM · 10-Q · 2026Q3 · Full report

FX / Currency Impact

INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 63 · Surprise 64

IBM reported a $1,148 million positive other comprehensive income impact for the nine months ended September 30, 2026, compared with a $1,355 million loss in the prior-year period, primarily reflecting foreign-currency translation and hedging effects. Foreign-currency debt designated as net-investment hedges increased to $18.3 billion at September 30, 2026 from $16.4 billion at December 31, 2025. IBM also increased the notional amount of derivatives designated as net-investment hedges to $7.7 billion from $6.9 billion and used $11.1 billion of cash-flow hedges for forecast royalty and cost transactions. The nine-month impact recognized in OCI from net-investment hedges included a $2,252 million foreign-exchange loss, illustrating material exposure to currency movements in foreign subsidiaries.

Key facts

• Based on currency rate movements in the third quarter of 2026, revenue from continuing operations increased 4.7 percent as reported and 5.6 percent adjusted for currency compared to the prior year. source
• In the first nine months of 2026, revenue from continuing operations increased 4.9 percent as reported and 4.2 percent at constant currency compared to the same period in 2025. source
• For the third quarter of 2026, revenue from continuing operations increased 4.7 percent as reported and 5.6 percent adjusted for currency compared to the prior year (currency impact statement). source