IBM · 10-Q · 2026Q3 · Full report
AI And Quantum R&D Investment
INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 56 · Surprise 50 · From source text
IBM increased research and development expense by 14.2% in the third quarter and 12.0% in the first nine months of 2026. The spending increase was driven by organic and inorganic investments in artificial intelligence, hybrid cloud and quantum computing. These investments support IBM’s software-led Hybrid Cloud and AI platform strategy and its quantum capabilities. The company also identified portfolio innovation investment as a driver of higher expense, indicating continued product development activity across these technology areas.
Key facts
- Research and development expense for the three months ended September 30, 2026 was $2,378 million, a 14.2% increase versus the prior-year period; for the nine months ended September 30, 2026 R&D expense was $6,863 million, a 12.0% increase. source
- IBM stated that IBM Bob became generally available in March 2026 and is an AI-based software development system. source
- Research and development expense for the three months ended September 30, 2026: $2,378 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -4.3% | Research and development expense for the three months ended September 30, 2026 was $2,378 million, a 14.2% increase versus the prior-year… |
| revenue | positive | probable | — | IBM stated that IBM Bob became generally available in March 2026 and is an AI-based software development system. |