IBM · 10-Q · 2026Q3 · Full report

Financing Revenue And Demand

INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 48 · Surprise 40

Financing revenue declined 3.9% year over year in the third quarter of 2026, or 3.3% adjusted for currency, due to lower used equipment sales. Nine-month revenue increased 7.3%, or 5.7% adjusted for currency, primarily because of higher client financing assets. Segment profit declined 12.5% to $108 million in the quarter and 9.9% to $334 million for the nine months, while margins fell 5.5 points and 10.7 points, respectively, due mainly to IBM Z product-cycle dynamics and higher unallocated credit-loss reserves.

Key facts

• Financing segment profit decreased 12.5 percent to $108 million and segment profit margin decreased 5.5 points to 56.1 percent in the third quarter of 2026 compared to the prior-year period. source
• For the first nine months of 2026, interest reported in cost of financing was $320 million, with a year-to-year increase of $52 million. source
• For the third quarter of 2026, interest reported in cost of financing was $104 million, with a year-to-year increase of $9 million. source
• For the nine months ended September 30, 2026, Financing segment profit decreased 9.9 percent to $334 million and segment profit margin decreased 10.7 points to 55.9 percent compared to the prior-year period. source
• Financing segment revenue for the three months ended September 30, 2026 decreased 3.9 percent as reported and 3.3 percent adjusted for currency compared to the prior-year period. source
• Financing segment revenue for the nine months ended September 30, 2026 increased 7.3 percent as reported and 5.7 percent adjusted for currency compared to the prior-year period. source