IBM · 10-Q · 2026Q3 · Full report

Interest Rate Environment

INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 13 · Surprise 6

IBM reported that third-quarter 2026 interest income fell $63 million year over year, primarily because of a lower average cash balance and lower average interest rates. For the first nine months, interest income declined $188 million for the same reasons. Interest expense was broadly stable at $1.451 billion for the first nine months, while interest reported in financing cost increased $52 million year over year to $320 million. The company issued $9.4 billion of debt during 2026 for general corporate purposes, exposing financing costs to prevailing market rates.