IBM · 10-Q · 2026Q2

INTERNATIONAL BUSINESS MACHINES CORP

Filed 2026-07-23 · Technology · View original filing on EDGAR

Ranked Events

• Liquidity and Capital PositionImportance 76 · Surprise 56
  Cash and cash equivalents declined to $7.172 billion at June 30, 2026 from $13.587 billion at December 31, 2025, while total cash, cash equivalents and restricted cash declined by $6.423 billion to $7.217 billion.…
• Quantum Computing Funding PolicyImportance 71 · Surprise 60
  IBM announced a letter of intent with the U.S. Department of Commerce to build Anderon, a pure-play quantum wafer foundry. The project is supported by $1 billion of CHIPS Act incentives from the Department of Commerce…
• Confluent AcquisitionImportance 71 · Surprise 60
  On March 17, 2026, IBM completed its acquisition of Confluent for total consideration of $11,602 million, including $11,268 million paid for common stock and $269 million for Confluent equity awards. Confluent…
• AI Infrastructure DemandImportance 70 · Surprise 56
  IBM reported that clients redirected spending toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases. Distributed Infrastructure revenue increased…
• Operating Cash Flow and CapexImportance 69 · Surprise 64
  Second-quarter operating cash flow increased $0.9 billion year over year to $2.6 billion, while free cash flow declined $0.3 billion to $2.5 billion. First-half operating cash flow increased $1.7 billion to $7.8…
• Geographic Revenue PerformanceImportance 64 · Surprise 56
  Second-quarter Americas revenue declined 0.5% to $8.417 billion, EMEA revenue increased 4.1% to $5.633 billion, and Asia Pacific revenue increased 0.3% to $3.112 billion. In the quarter, Canada declined 17.1%, the…
• Outstanding IndebtednessImportance 64 · Surprise 42
  IBM had $63.1 billion of total long-term debt, including $61.97 billion of pre-swap borrowings, at June 30, 2026, with $5.77 billion due in current maturities. On February 3, 2026, IBM issued $3.25 billion of U.S.…
• R&D Investment in AIImportance 60 · Surprise 40
  IBM's research and development expense was $2.311 billion in the second quarter of 2026, increasing 10.2 percent year over year. First-half R&D expense was $4.485 billion, up 10.8 percent from the prior-year period and…
• Hybrid Cloud and Data GrowthImportance 60 · Surprise 40
  IBM’s six-month 2026 Hybrid Cloud revenue increased 12.1% year over year to $3.903 billion, while Data revenue increased 19.0% to $3.256 billion. Automation revenue rose 6.5% to $3.692 billion, and total Software…
• Operating Expense TrendsImportance 60 · Surprise 40
  Total expense and other income increased 0.7% to $7.428 billion in the second quarter and 5.2% to $14.991 billion for the first half. R&D expense increased 10.2% to $2.311 billion in the quarter and 10.8% to $4.485…
• IBM Z Product TransitionImportance 58 · Surprise 56
  IBM Z revenue decreased 42.0% in the second quarter, reflecting performance below expectations and comparison with the historically strong June 2025 z17 launch. The shortfall was concentrated in Transaction Processing…
• Acquisitions and DivestituresImportance 58 · Surprise 42
  IBM’s net intangible assets increased $2,564 million during the first six months of 2026, primarily from $3,834 million of acquired intangibles related to the Confluent acquisition in the first quarter. Goodwill…
• Software Product DemandImportance 54 · Surprise 40
  Software revenue increased 5.1% in the second quarter, supported by healthy growth in IBM’s approximately 80% recurring-revenue base. Hybrid Cloud revenue increased 11.2%, Data revenue increased 18.9%, and Transaction…
• Segment Revenue TrendsImportance 49 · Surprise 32
  IBM’s Software segment generated $14.813 billion of six-month 2026 revenue, up 7.9% year over year, supported by growth in Hybrid Cloud, Data and Automation. Consulting revenue increased 2.1% to $10.599 billion, while…
• Revenue Performance and MixImportance 49 · Surprise 32
  IBM reported second-quarter 2026 revenue of $17.162 billion, up 1.1% from $16.977 billion, while six-month revenue increased 4.9% to $33.079 billion from $31.519 billion. Six-month Software revenue rose 7.9% to $14.813…
• Guidance / OutlookImportance 48 · Surprise 60
  IBM characterized the technology spending environment as dynamic and said it continues to adjust its client engagement model, advance its high-growth portfolio, and accelerate innovation and productivity actions.…
• Segment ProfitabilityImportance 45 · Surprise 40
  Six-month total segment profit increased 9.9% to $7.392 billion, with the total segment profit margin expanding from 21.4% to 22.4%. Software segment profit increased 11.1% to $4.601 billion and its margin rose from…
• DividendsImportance 42 · Surprise 14
  IBM paid $3.166 billion of common-stock dividends during the first six months of 2026, compared with $3.112 billion in the prior-year period. The six-month dividend was $3.37 per share, compared with $3.35 per share…
• Income Tax Rate ChangesImportance 41 · Surprise 48
  The GAAP continuing-operations tax provision declined 22.5% to $313 million in the second quarter of 2026 from $404 million in the prior-year quarter. For the first six months, the GAAP provision decreased to $484…
• AI Infrastructure Supply ConstraintsImportance 40 · Surprise 42
  IBM described the infrastructure supply environment as constrained during the first half of 2026. The company proactively strengthened its supply chain and increased inventory levels to support anticipated customer…

Revenue by Product (in millions)

Revenue by Geography (in millions)