NYSE: IBM
INTERNATIONAL BUSINESS MACHINES CORPCIK 0000051143 · SIC 3570 · Computer & Office Equipment
International Business Machines Corporation (IBM or the company) was incorporated in the State of New York on June 16, 1911, as the Computing-Tabulating-Recording Co. (C-T-R), a consolidation of the Computing Scale Co. of America, the Tabulating Machine Co. and The International Time Recording Co.… About this business →
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IBM files 424B5 shelf takedown prospectus supplement with no offering details disclosed
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IBM files shelf registration for unspecified securities offering with proceeds for general corporate purposes
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IBM: revenue $17.2B, net income $2.17B. IBM Q2 revenue growth slows to 1.1% as late-quarter client shift to infrastructure delays deals
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IBM raises full-year revenue guidance to 4-5% on Q2 beat, reaffirms $1B FCF growth
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IBM Q2 revenue up 1% to $17.2B but Infrastructure down 7% on mainframe deal slippage
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IBM extends $10B credit facilities by one year to 2029 and 2031
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IBM commits $10B+ to quantum computing, targets first fault-tolerant system by 2029
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Latest financial statements
From 10-Q filed Jul 23, 2026 (period ending Jun 30, 2026). As printed on the EDGAR/iXBRL face — not generated by the model.
Income Statement (Unaudited)
($ in millions, except per share amounts)
| Description | Three months ended June 30, 2026 | Three months ended June 30, 2025 | Six months ended June 30, 2026 | Six months ended June 30, 2025 |
|---|---|---|---|---|
| Revenue: | ||||
| Services | 7,927 | 7,682 | 15,615 | 14,962 |
| Sales | 9,049 | 9,129 | 17,058 | 16,199 |
| Financing | 186 | 166 | 406 | 357 |
| Total revenue | 17,162 | 16,977 | 33,079 | 31,519 |
| Cost: | ||||
| Services | 5,294 | 5,280 | 10,538 | 10,282 |
| Sales | 1,854 | 1,630 | 3,453 | 3,034 |
| Financing | 107 | 90 | 232 | 194 |
| Total cost | 7,255 | 7,001 | 14,222 | 13,511 |
| Gross profit | 9,907 | 9,977 | 18,857 | 18,008 |
| Expense and other (income): | ||||
| Selling, general and administrative | 4,981 | 5,027 | 10,071 | 9,913 |
| Research and development | 2,311 | 2,097 | 4,485 | 4,047 |
| Intellectual property and custom development income | (166) | (215) | (338) | (468) |
| Other (income) and expense | (185) | (39) | (186) | (204) |
| Interest expense | 486 | 510 | 959 | 965 |
| Total expense and other (income) | 7,428 | 7,380 | 14,991 | 14,253 |
| Income from continuing operations before income taxes | 2,479 | 2,597 | 3,866 | 3,755 |
| Provision for/(benefit from) income taxes | 313 | 404 | 484 | 507 |
| Income from continuing operations | 2,166 | 2,193 | 3,382 | 3,248 |
| Income/(loss) from discontinued operations, net of tax | (1) | 1 | (1) | 1 |
| Net income | 2,165 | 2,194 | 3,381 | 3,249 |
| Earnings per share of common stock: | ||||
| Assuming dilution: | ||||
| Continuing operations | 2.27 | 2.31 | 3.55 | 3.43 |
| Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 2.27 | 2.31 | 3.55 | 3.43 |
| Basic: | ||||
| Continuing operations | 2.30 | 2.36 | 3.60 | 3.49 |
| Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 2.30 | 2.36 | 3.60 | 3.50 |
| Weighted-average number of common shares outstanding: (millions) | ||||
| Assuming dilution | 953.3 | 948.0 | 952.7 | 946.7 |
| Basic | 941.2 | 930.8 | 939.9 | 929.4 |
Consolidated Balance Sheet (Unaudited)
($ in millions)
| Description | At June 30, 2026 | At December 31, 2025 |
|---|---|---|
| Assets: | ||
| Current assets: | ||
| Cash and cash equivalents | 7,172 | 13,587 |
| Restricted cash | 45 | 54 |
| Marketable securities | 960 | 830 |
| Notes and accounts receivable trade (net of allowances of $107 in 2026 and $99 in 2025) | 6,044 | 8,112 |
| Short-term financing receivables: | ||
| Held for investment (net of allowances of $94 in 2026 and $106 in 2025) | 5,782 | 7,344 |
| Held for sale | 874 | 1,131 |
| Other accounts receivable (net of allowances of $32 in 2026 and $37 in 2025) | 1,348 | 1,052 |
| Inventory, at lower of average cost or net realizable value: | ||
| Finished goods | 320 | 230 |
| Work in process and raw materials | 1,425 | 990 |
| Total inventory | 1,746 | 1,220 |
| Deferred costs | 1,238 | 1,084 |
| Prepaid expenses and other current assets | 3,188 | 2,530 |
| Total current assets | 28,398 | 36,944 |
| Property, plant and equipment | 17,603 | 17,874 |
| Less: Accumulated depreciation | 11,867 | 11,975 |
| Property, plant and equipment net | 5,736 | 5,899 |
| Operating right-of-use assets net | 3,068 | 3,129 |
| Long-term financing receivables (net of allowances of $28 in 2026 and $34 in 2025) | 7,126 | 7,708 |
| Prepaid pension assets | 7,645 | 7,544 |
| Deferred costs | 835 | 825 |
| Deferred taxes | 8,709 | 8,610 |
| Goodwill | 74,599 | 67,717 |
| Intangible assets net | 13,955 | 11,391 |
| Investments and sundry assets | 2,028 | 2,112 |
| Total assets | 152,099 | 151,880 |
| Liabilities: | ||
| Current liabilities: | ||
| Taxes | 2,023 | 2,347 |
| Short-term debt | 5,775 | 6,424 |
| Accounts payable | 4,395 | 4,756 |
| Compensation and benefits | 3,364 | 4,114 |
| Deferred income | 16,160 | 16,101 |
| Operating lease liabilities | 770 | 800 |
| Other accrued expenses and liabilities | 3,425 | 4,116 |
| Total current liabilities | 35,912 | 38,658 |
| Long-term debt | 56,212 | 54,836 |
| Retirement and nonpension postretirement benefit obligations | 8,603 | 9,018 |
| Deferred income | 4,272 | 4,271 |
| Operating lease liabilities | 2,515 | 2,547 |
| Other liabilities | 10,044 | 9,810 |
| Total liabilities | 117,558 | 119,139 |
| Equity: | ||
| IBM stockholders’ equity: | ||
| Common stock, par value $0.20 per share, and additional paid-in capital | 64,600 | 63,318 |
| Shares authorized: 4,688 | ||
| Shares issued: 2026 — 2,296 | ||
| 2025 — 2,291 | ||
| Retained earnings | 155,937 | 155,648 |
| Treasury stock at cost | (170,934) | (170,605) |
| Shares: 2026 — 1,354 | ||
| 2025 — 1,354 | ||
| Accumulated other comprehensive income/(loss) | (15,151) | (15,713) |
| Total IBM stockholders’ equity | 34,452 | 32,648 |
| Noncontrolling interests | 89 | 93 |
| Total equity | 34,541 | 32,740 |
| Total liabilities and equity | 152,099 | 151,880 |
Consolidated Statement of Cash Flows (Unaudited)
($ in millions)
| Description | Six months ended June 30, 2026 | Six months ended June 30, 2025 |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income | 3,381 | 3,249 |
| Adjustments to reconcile net income to cash provided by operating activities: | ||
| Depreciation (1) | 1,088 | 1,114 |
| Amortization of capitalized software and acquired intangible assets | 1,535 | 1,328 |
| Stock-based compensation | 1,004 | 842 |
| Net (gain)/loss on divestitures, asset sales and other | (78) | (40) |
| Changes in operating assets and liabilities, net of acquisitions/divestitures | 836 | (421) |
| Net cash provided by operating activities | 7,766 | 6,071 |
| Cash flows from investing activities: | ||
| Payments for property, plant and equipment | (461) | (454) |
| Proceeds from disposition of property, plant and equipment/other | 31 | 111 |
| Investment in software | (313) | (314) |
| Purchases of marketable securities and other investments | (2,871) | (7,740) |
| Proceeds from disposition of marketable securities and other investments | 3,123 | 4,962 |
| Acquisition of businesses, net of cash acquired | (10,480) | (7,845) |
| Divestiture of businesses, net of cash transferred | 1 | (1) |
| Net cash provided by/(used in) investing activities | (10,970) | (11,281) |
| Cash flows from financing activities: | ||
| Proceeds from new debt | 7,437 | 8,385 |
| Payments to settle debt | (7,141) | (2,565) |
| Short-term borrowings/(repayments) less than 90 days net | 0 | (29) |
| Common stock repurchases for tax withholdings | (465) | (437) |
| Proceeds from issuance of shares | 418 | 401 |
| Financing other | (91) | (54) |
| Cash dividends paid | (3,166) | (3,112) |
| Net cash provided by/(used in) financing activities | (3,008) | 2,589 |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (211) | 487 |
| Net change in cash, cash equivalents and restricted cash | (6,423) | (2,134) |
| Cash, cash equivalents and restricted cash at January 1 | 13,640 | 14,160 |
| Cash, cash equivalents and restricted cash at June 30 | 7,217 | 12,026 |
Amounts as printed on the EDGAR/iXBRL face — ($ in millions, except per share amounts); ($ in millions). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗
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About INTERNATIONAL BUSINESS MACHINES CORP
Source: Item 1 (Business) from the 10-K filed February 24, 2026. Description as filed by the company with the SEC.
Item 1. Business:
International Business Machines Corporation (IBM or the company) was incorporated in the State of New York on June 16, 1911, as the Computing-Tabulating-Recording Co. (C-T-R), a consolidation of the Computing Scale Co. of America, the Tabulating Machine Co. and The International Time Recording Co. of New York. Since that time, IBM has focused on the intersection of business insight and technological innovation, and its operations and aims have been international in nature. This was signaled over 100 years ago, in 1924, when C-T-R changed its name to International Business Machines Corporation. And it continues today—we create sustained value for clients by helping them leverage the power of hybrid cloud and artificial intelligence (AI). Our hybrid cloud platform and AI technology support clients’ digital transformations and helps them reimagine critical workflows, at scale, and modernize applications to increase agility, drive innovation and create operational efficiencies. Our offerings draw from leading IBM capabilities in software, consulting services capability to deliver business outcomes, and deep incumbency in mission-critical infrastructure, all bolstered by one of the world’s leading research organizations.
The following information is included in IBM’s 2025 Annual Report to Stockholders and is incorporated by reference:
IBM Strategy—pages 11 to 12.
Business Segments and Capabilities—pages 12 to 14.
Human Capital—page 15.
Strategic Partnerships
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We proactively partner with a broad variety of companies including hyperscalers, service providers, global system integrators, and software and hardware vendors. We work alongside our partners to deliver end-to-end solutions that address our clients’ complex business challenges while accelerating growth. Our strategic partners include: Adobe, Amazon Web Services (AWS), Microsoft, Oracle, Palo Alto Networks, Salesforce, Samsung Electronics and SAP, among others.
Companies with which we have strategic partnerships in some areas may be competitors in other areas.
Competition
IBM is a globally integrated enterprise that participates in a highly competitive environment. Our competitors vary by industry segment, and range from large multinational enterprises to smaller, more narrowly focused entities. Across our business segments, we recognize hundreds of competitors worldwide and as we execute our hybrid cloud and AI strategy, we are regularly exposed to new competitors.
Our principal methods of competition are: technology innovation; performance; price; quality; brand; our breadth of capabilities, products and services; talent; client relationships and trust; the ability to deliver business value to clients; and service and support. In order to maintain leadership, we optimize our portfolio with organic and inorganic innovations and effective resource allocation. These investments not only drive current performance but will extend our innovation leadership into the future.
Our breadth and depth of expertise enables us to take different technologies and bring them together to solve the most pressing business issues of our clients. We differentiate from other providers by bringing together incumbency with enterprises, deep expertise in technology, industries and business processes, a broad go-to-market reach including an ecosystem of partners and alliances, and a strong focus on innovation. All of these attributes position IBM for accelerated growth now and prepare us for the next set of business opportunities, such as quantum computing.
Overall, the company is the leader or among the leaders in each of our business segments. A summary of the competitive environment for each business segment is included below:
Software:
The depth, breadth, and innovation of our software offerings, coupled with our global reach, deep industry expertise and research capabilities help differentiate our offerings from our competitors. Our hybrid cloud and AI platforms allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The principal competitors in this segment include: Alphabet (Google), Amazon, BMC, Broadcom, Microsoft, Oracle, Salesforce, SAP and Splunk, a CISCO Company. We also compete with smaller, niche competitors in specific geographic regions or product segments.
Consulting:
Consulting integrates strategy, experience design, technology and operations expertise by domain across industries to deliver transformation for clients. Consulting operates in a highly competitive, dynamic market that spans business consulting, systems integration, application development and management, and business process outsourcing services. Our competitors include global firms such as Accenture, Capgemini, India-based service providers, management consulting firms, the consulting practices of public accounting firms, engineering service providers, and niche specialists. Our competitive position is supported by industry expertise; hybrid cloud, data, and AI capabilities; and the use of IBM technology and ecosystem partners to deliver solutions aligned to clients’ strategic priorities.
Infrastructure:
IBM is well positioned in the growing hybrid cloud infrastructure market, providing on-premises and cloud-based server and storage solutions. We gain advantage and differentiation through investments in higher-value capabilities, including security, scalability, and reliability, designed especially for mission-critical and AI workloads. In addition, we offer a portfolio of life-cycle services for hybrid cloud infrastructure deployment. Our principal competitors include: Dell Technologies, Hewlett-Packard Enterprise (HPE), Intel, NetApp and Pure Storage as well as original device manufacturers (ODMs) who provide systems that are re-branded. Further, cloud service providers are leveraging innovation in technology and service delivery to compete with traditional providers and to offer additional routes to market for server and storage systems.
Financing:
Financing provides client and commercial financing, facilitating IBM clients’ acquisition of hardware, software and services. Financing’s ability to manage credit and residual value risk generates a competitive advantage for the company. The key competitive factors include: interest rates charged, IT product experience, client service, contract flexibility, ease of doing business, global capabilities and residual values. In client and commercial financing, Financing primarily competes with non-captive financing entities and financial institutions.
Forward-Looking and Cautionary Statements
Certain statements contained in this Form 10-K may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“Reform Act”). Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements by their nature address matters that are uncertain to different degrees. The company may also make forward-looking statements in other reports filed with the Securities and Exchange Commission (“SEC”), in materials delivered to stockholders and in press releases. In addition, the company’s representatives may from time to time make oral forward-looking statements. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Words such as “anticipates,” “believes,” “expects,” “estimates,” “intends,” “plans,” “projects,” and similar expressions, may identify such forward-looking statements. Any forward-looking statement in this Form 10-K speaks only as of the date on which it is made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements. In accordance with the Reform Act, set forth under