IBM · 10-Q · 2026Q3 · Full report

Other Income And Expense

INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 40 · Surprise 56

Total other income was $109 million in the third quarter of 2026, down $64 million year over year, and $296 million in the first nine months, down $81 million. Third-quarter results reflected $78 million of higher non-operating retirement-related costs and $63 million of lower interest income, partly offset by $32 million of improved net exchange gains. First-nine-month results reflected $223 million of higher non-operating retirement-related costs and $188 million of lower interest income, partly offset by $177 million of lower net exchange losses and $105 million of higher securities and investment gains.

Key facts

• Operating (non-GAAP) other (income) and expense was income of $578 million in the first nine months of 2026, an increase of $134 million compared to the prior-year period. source
• Total other (income) and expense was income of $109 million in the third quarter of 2026, a decrease of $64 million compared to the prior-year period. source
• Total other (income) and expense was income of $296 million in the first nine months of 2026, a decrease of $81 million compared to the prior-year period. source
• Operating (non-GAAP) other (income) and expense was income of $200 million in the third quarter of 2026, an increase of $9 million compared to the prior-year period. source
• At both September 30, 2026 and December 31, 2025, the total notional amount of derivative instruments in economic hedges of employee compensation obligations was $1.5 billion. source