IBM · 10-Q · 2026Q3

INTERNATIONAL BUSINESS MACHINES CORP

Filed 2026-10-22 · Technology · View original filing on EDGAR

Ranked Events

• Confluent AcquisitionImportance 71 · Surprise 60
  IBM identified the Confluent acquisition as a first-quarter 2026 investment in innovation and software capabilities. Confluent contributed to third-quarter Software revenue growth, particularly Data revenue, which…
• Acquisitions and PartnershipsImportance 71 · Surprise 60
  IBM completed four acquisitions during the nine months ended September 30, 2026—two in Software, one in Infrastructure and one in Consulting—for aggregate purchase prices of $12,600 million. IBM completed the…
• Foreign Exchange HedgingImportance 66 · Surprise 40
  IBM designated $18.3 billion of foreign-currency debt as hedges of net investments in foreign subsidiaries at September 30, 2026, up from $16.4 billion at December 31, 2025. The notional amount of derivatives…
• Cash Flow And Capital AllocationImportance 65 · Surprise 48
  Nine-month operating cash flow increased 28.8% to $11,791 million from $9,153 million. IBM invested $11,364 million in acquisitions net of cash acquired and used $4,762 million for cash dividends during the first nine…
• Geographic Revenue PerformanceImportance 64 · Surprise 56
  Third-quarter 2026 revenue increased 5.3% in the Americas to $8.6 billion, 3.3% in EMEA to $5.4 billion, and 5.6% in Asia Pacific to $3.1 billion. Within the third quarter, U.S. revenue increased 6.6%, while Brazil…
• FX / Currency ImpactImportance 63 · Surprise 64
  IBM reported a $1,148 million positive other comprehensive income impact for the nine months ended September 30, 2026, compared with a $1,355 million loss in the prior-year period, primarily reflecting foreign-currency…
• Interest Rate ExposureImportance 61 · Surprise 32
  IBM had $65.0 billion of debt and finance lease obligations at September 30, 2026, up from $62.3 billion at December 31, 2025, with stated debt coupons and weighted-average rates ranging from below 1% to approximately…
• Liquidity and Debt PositionImportance 61 · Surprise 32
  At September 30, 2026, IBM held $11.106 billion of cash, restricted cash and marketable securities, down $3.364 billion from year-end 2025, while total debt rose $2.557 billion to $63.817 billion. The company issued…
• Financing Receivables TrendsImportance 60 · Surprise 40
  IBM transferred $6,265 million of commercial financing receivables during the nine months ended September 30, 2026, up from $5,681 million in the prior-year period, supporting cash and liquidity management. Client…
• Hybrid Cloud and Data GrowthImportance 60 · Surprise 40
  IBM's Hybrid Cloud offering generated $6.0 billion of revenue in the first nine months of 2026, up 11.5% year over year, while Data revenue reached $5.0 billion, up 19.1%. In the third quarter, Hybrid Cloud revenue…
• Income Tax Rate ChangesImportance 59 · Surprise 82
  IBM’s continuing-operations tax provision was $298 million in the third quarter of 2026 and $782 million for the first nine months, compared with $686 million and $1.193 billion, respectively, in the prior-year…
• Quantum Computing InvestmentImportance 58 · Surprise 42
  IBM finalized a September 14, 2026 award agreement with the U.S. Department of Commerce under the CHIPS and Science Act providing up to $1.0 billion to accelerate quantum wafer manufacturing research and development.…
• AI And Quantum R&D InvestmentImportance 56 · Surprise 50
  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,…
• Infrastructure Demand And TransitionImportance 54 · Surprise 40
  Infrastructure revenue increased 4.2% in the third quarter, led by 8.3% growth in Hybrid Infrastructure and a 31.3% increase in Distributed Infrastructure. Storage and Power benefited from client modernization, data…
• Operating Income and MarginsImportance 54 · Surprise 40
  Nine-month gross profit increased 4.4% to $28,571 million from $27,369 million, while gross margin declined to approximately 56.9% from 57.2% because total costs increased 5.5% to $21,611 million. Nine-month income…
• Revenue Performance and MixImportance 54 · Surprise 40
  Third-quarter 2026 revenue increased 4.7% year over year to $17.1 billion, while nine-month revenue increased 4.9% to $50.2 billion. Software was the fastest-growing major segment, with third-quarter revenue up 8.2% to…
• Consulting Demand And BacklogImportance 49 · Surprise 32
  Consulting revenue was essentially flat in the third quarter but increased 1.5% for the first nine months, with demand centered on application modernization, data and AI transformation, and cybersecurity services.…
• Operating Expense TrendsImportance 49 · Surprise 32
  Third-quarter total expense and other income increased 4.1% to $7.2 billion, driven by portfolio innovation investments and higher non-operating retirement-related costs, partly offset by productivity savings and…
• Financing Revenue And DemandImportance 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…
• Software Product DemandImportance 43 · Surprise 32
  Software revenue increased 8.2% year over year in the third quarter and 8.1% in the first nine months of 2026, supported by strong new business, pipeline closures and an approximately 80% recurring-revenue base. Hybrid…

Revenue by Product (in millions)

Revenue by Geography (in millions)