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Notice of Annual General Meeting of Implantica AG

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VADUZ, Liechtenstein, April 25, 2025 /PRNewswire/ — The depository receipt holders of Implantica AG, reg. no. FL-0002.629.889-3, are hereby invited to attend the annual general meeting to be held on Thursday, May 15, 2025, at 14:00 at Hotel Kommod, Industriering 14, 9491 Ruggell, Liechtenstein.

Right to participate and notice

Anyone wishing to attend the annual general meeting must:

be entered as depository receipt holder in the Swedish Depository Receipt (“SDR”) register kept by the Swedish central securities depository Euroclear Sweden on Wednesday, April 30, 2025, andnotify the company of their intention to attend no later than May 7, 2025, by email to investorrelations@implantica.com or by post to Implantica AG, Annual General Meeting, Aeulestrasse 45, 9490 Vaduz, Liechtenstein

When giving notification to attend, please specify the SDR holder’s name, personal identity or company registration number, address, telephone number and the number of any representative (no more than two).

in lieu of physical participation, votes may be cast by the SDR holder no later than Wednesday, May 7, 2025, in accordance with the instructions on the Postal Voting Form, see appendix 1, so that the voting form is received by Pareto Securities AB (the “Custodian”) no later than that day. The Custodian will forward the votes for representation to the local independent proxy, Mr. Philipp Wanger, Attorney-at-law.

If SDR holders are represented by a proxy, a written and dated power of attorney signed by the SDR holder must be issued to the proxy. The power of attorney must not be older than one year, unless a longer validity term (maximum five years) has been stipulated. Anyone representing a legal entity must present a copy of the registration certificate or other document demonstrating the signatory’s authority to sign for the legal entity. In order to facilitate registration at the annual general meeting, the power of attorney as well as the registration certificate and other authorization documents should be received by the company at the above address by May 7, 2025, at the latest.

Holders of depository receipts who hold their receipts through nominees (Sw. förvaltare), such as a bank, must request a temporary registration of the voting rights in their own name in the share register kept by Euroclear Sweden (so called voting right registration) in order to be able to participate at the annual general meeting. Holders of depository receipts who want to obtain such registration must contact the nominee regarding this in advance of April 30, 2025.

Proposed agenda

Opening of the meeting and appointment of the Chair of the meetingPreparation and approval of the voting listApproval of the agendaAppointment of one or two persons to approve the minutesDetermination of whether the meeting has been duly convenedAddress by the CEO and CFOPresentation of the annual report, the statutory annual financial statements, the consolidated financial statements and auditor’s reportsResolution and adoption of the statutory financial statements and the consolidated financial statements of Implantica AG, acknowledging the reports of the auditorsResolution on the net result in accordance with the adopted balance sheetResolution on discharge of the Board of Directors, Executive Management and the AuditorsResolution on approval of remuneration of the Board of Directors and Executive ManagementElection of the Board of Directors and the Chairman and Vice-Chairman of the Board of Directors Election of the Chairman of the Board of DirectorsElection of the Vice-Chairman of the Board of DirectorsElection of the members of the Board of DirectorsElection of the Chairman and the member of the Nomination and Remuneration CommitteeElection of the independent proxyElection of the auditorsResolution on amendment of Article 4a para. 1 of the Articles of AssociationResolution on amendment of Article 4 para. 5 of the Articles of AssociationClosing of the meeting

Resolution proposals and Elections

The following agenda items are scheduled for the Annual General Meeting (“AGM”):

8. Resolution and adoption of the statutory financial statements and the consolidated financial statements of Implantica AG

Proposal of the Board of Directors:

Approval of the annual report 2024 consisting of the statutory financial statements and the consolidated financial statements of Implantica AG, acknowledging the reports of the auditors.

9. Resolution on the net result in accordance with the adopted balance sheet

Proposal of the Board of Directors:
Carry forward of the net loss for the financial year 2024 in accordance with the adopted balance sheet and to no payment of dividend.

10. Resolution on discharge of the Board of Directors, Executive Management and the Auditors

Proposal of the Board of Directors:

Granting of discharge to the members of the Board of Directors for financial year 2024.Granting of discharge to the members of the Executive Management for financial year 2024.Granting of discharge to the Auditor for financial year 2024.

11. Resolution on approval of remuneration of the Board of Directors and Executive Management

Proposal of the Board of Directors:

Approve the total remuneration of the Board of Directors of TEUR 106 for financial year 2024. The total remuneration includes fixed compensation, pension contributions and a long-term share-based incentive plan.Approve the total remuneration of the Executive Management of TEUR 821 for financial year 2024. The total remuneration includes fixed compensation, pension contributions and a long-term share-based incentive plan. Executive Management is made up of the Chief Executive Officer, the Chief Financial Officer, the Chief Strategy Officer and the Chief Corporate Affairs Officer.

12. Election of the Board of Directors and the Chairman and Vice-Chairman of the Board of Directors

The Board of Directors of the company currently consists of four ordinary members. It is proposed to re-elect all current board members for the period until the end of the next annual general meeting including the re-election of Liselott Kilaas as Chairman and Johan Bojs as Vice-Chairman.

Proposal of the Board of Directors:

Re-election of Liselott Kilaas as member and Chairman of the Board of Directors for a term of office until completion of the next Annual General Meeting of shareholders.Re-election of Johan Bojs as member and Vice-Chairman of the Board of Directors for a term of office until completion of the next Annual General Meeting of shareholders.Re-election of Tomas Puusepp as member of the Board of Directors for a term of office until completion of the next Annual General Meeting of shareholders.Re-election of Stephan Siegenthaler as member of the Board of Directors for a term of office until completion of the next Annual General Meeting of shareholders.

13. Election of members and Chairman of the Nomination and Remuneration Committee

Proposal of the Board of Directors: 

Re-election of Johan Bojs as Chairman of the Nomination and Remuneration Committee for a term of office until completion of the next Annual General Meeting of shareholders.Election of Tomas Puusepp as member of the Nomination and Remuneration Committee for a term of office until completion of the next Annual General Meeting of shareholders.

14. Election of the independent proxy

Proposal of the Board of Directors: 

Re-election of Philipp Wanger, Attorney-at-law, Neugasse 17, 9490 Vaduz, Liechtenstein as independent proxy until the next annual general meeting of shareholders.

15. Election of the auditors

Proposal of the Board of Directors:

Re-election of KPMG (Liechtenstein) AG, Aeulestrasse 2, 9490 Vaduz, Liechtenstein as auditor for the financial year 2025.

16. Resolution on amendment of Article 4a para. 1 of the Articles of Association

Resolve on an authorization for the board of directors to, with or without deviation from the shareholders’ preferential rights, resolve on new share issues. The objective of the authorization is to provide the board of directors with flexibility in its work to ensure that the company can procure capital for the financing of the operations in an appropriate manner, to enable business or company acquisitions and to enable a broadening of the company’s shareholder base.

Proposal of the Board of Directors:
Art. 4a para. 1: The Board of Directors is authorized to increase the share capital, at any time until May 14, 2030, by a maximum amount of CHF 69’461’536 by issuing a maximum of 34’730’768 fully paid up registered ordinary shares (Class A) with a par value of CHF 2 each. An increase of the share capital in partial amounts shall be permissible.

Art. 4a Abschnitt 1: Der Verwaltungsrat ist ermächtigt, jederzeit bis zum 14. Mai 2030 das Aktienkapital im Maximalbetrag von CHF 69’461’536 durch Ausgabe von höchstens 34’730’768 voll zu liberierenden auf den Namen lautende Aktien (Class A) mit einem Nennwert von je CHF 2 zu erhöhen. Erhöhungen in Teilbeträgen sind gestattet.

17. Resolution on amendment of Article 4 para. 5 of the Articles of Association

Resolve on an authorization for the board of directors to, with or without deviation from the shareholders’ preferential rights, resolve on new share issues for the exercise of contingent capital comprising conversion rights or options in relation with convertible debt instruments. The objective of the authorization is to provide the board of directors with flexibility in its work to ensure that the company can procure capital for the financing of the operations in an appropriate manner, to enable business or company acquisitions and to enable a broadening of the company’s shareholder base. Furthermore, to resolve on adding the sentence, “An increase of the share capital in partial amounts shall be permissible,” to this Article 4 para. 5.

Proposal of the Board of Directors:
Art. 4 para. 5: The share capital may be increased by a maximum of CHF 69’461’536 through the issuance of a maximum of 34’730’768 fully paid up registered ordinary shares (Class A) with a par value of CHF 2 each by means of the exercise of conversion rights or options in relation with convertible debt instruments, loans and similar forms of financing of the Company or of a subsidiary company. The conditions for the granting of the option rights and conversion rights shall be determined by the Board of Directors. The Board of Directors is authorized to restrict or exclude shareholders’ advance subscription rights if the convertible debt instruments, loans and similar forms of financing are used, (i) in connection with the financing and refinancing of the business of the Company or its subsidiaries or (ii) in connection with the financing and refinancing of the takeover of companies, parts of companies, interests or co-operations or strategic partnerships. To the extent shareholders’ advance subscription rights are excluded, the exercise period for conversion and option rights granted shall not exceed 5 years and the conversion or exercise price for the new shares to be issued shall at least correspond to the market conditions at the time of the issue of the relevant debt or loan instrument. An increase of the share capital in partial amounts shall be permissible.

Art. 4 Abschnitt 5: Das Aktienkapital kann sich durch Ausgabe von maximal 34’730’768 voll zu liberierenden Namenaktien (Class A) im Nennwert von je CHF 2 um maximal CHF 69’461’536 erhöhen, infolge der Ausübung von Wandel- oder Optionsrechte, welche in Zusammenhang mit Wandelschuldinstrumenten, Wandeldarlehen und ähnlichen Finanzierungsformen der Gesellschaft oder einer ihrer Tochtergesellschaften eingeräumt worden sind. Die Ausgabebedingungen für die Options- und Wandelrechte werden durch den Verwaltungsrat festgelegt. Der Verwaltungsrat ist ermächtigt, das Vorwegzeichnungsrecht der Aktionäre aufzuheben oder einzuschränken, sofern die Wandelschuldinstrumente, Wandeldarlehen und ähnliche Finanzierungsformen (i) im Zusammenhang mit der Finanzierung und Refinanzierung der Gesellschaft oder ihrer Tochtergesellschaften, oder (ii) im Zusammenhang mit der Finanzierung und Refinanzierung der Übernahme von Unternehmen, Unternehmensteilen, Beteiligungen oder Kooperationen und strategischen Partnerschaften verwendet werden. Soweit das Vorwegzeichnungsrecht ausgeschlossen ist, ist die Ausübungsfrist auf höchstens fünf Jahre und der Ausgabepreis für die neuen Aktien mindestens zu den Marktbedingungen zum Zeitpunkt der Ausgabe des Schuldinstruments bzw. Darlehens anzusetzen. Erhöhungen in Teilbeträgen sind gestattet.

Number of shares and votes in the company

Implantica AG has two classes of shares, class A and class B. The class A shares are listed on the Nasdaq First North Premier Growth Market, through Swedish Depository Receipts (“SDRs”). One SDR represents one class A share in Implantica AG. Each class A and class B share provide entitlement to one vote. The total number of class A shares in the company amounts to 58,211,537 shares with a nominal value of CHF 2.00 each (class A) and 1,125,000,000 class B shares with a nominal value of CHF 0.02 each (class B), therefore, the total number of votes in the company amounts to 1,183,211,537 votes. At the date of this notice, there are 14,321 SDRs representing treasury class A shares, which cannot be represented at the annual general meeting.

Information at the meeting

The board of directors and the CEO shall, if any SDR holder so requests and the board of directors believes that it can be done without material harm to the company, provide information regarding circumstances that may affect the assessment of an item on the agenda, circumstances which may affect the assessment of the company’s or subsidiaries’ financial position and circumstances that may affect the company’s relation to other companies within the group. SDR holders who want to submit questions in advance may do so in writing by way of e-mail at investorrelations@implantica.com

Documents

Complete proposals and statements, including the auditor’s statement, as well as accounting documents and audit report for 2024, will be available at the company’s offices on Aeulestrasse 45, 9490 Vaduz, Liechtenstein and on the company’s website, www.implantica.com, no later than three weeks before the general meeting.

Minutes

The minutes of the annual general meeting will be available for review from the evening of June 13, 2025, at the latest at the company’s headquarters, Aeulestrasse 45, 9490 Vaduz, Liechtenstein and on the company’s website www.implantica.com.

Processing of personal data

For information on how your personal data is processed, see https://www.euroclear.com/dam/ESw/Legal/Privacy-notice-bolagsstammor-engelska.pdf.

Implantica AG
The Board of Directors
April 25, 2025

For further information, please contact:
Nicole Pehrsson, Chief Corporate Affairs Officer
Telephone (CH): +41 (0)79 335 09 49
nicole.pehrsson@implantica.com

Implantica is listed on Nasdaq First North Premier Growth Market in Stockholm.

The company’s Certified Adviser is FNCA Sweden AB, info@fnca.se

The information was sent for publication, through the agency of the contact person set out above, on April 25, 2025, at 10:15 a.m. CEST.

About Implantica

Implantica is a medtech group dedicated to bringing advanced technology into the body. Implantica’s lead product, RefluxStop™, is a CE-marked implant for the prevention of gastroesophageal reflux that will potentially create a paradigm shift in anti-reflux treatment as supported by successful clinical trial results. Implantica also focuses on eHealth inside the body and has developed a broad, patent protected, product pipeline based partly on two platform technologies: an eHealth platform designed to monitor a broad range of health parameters, control treatment from inside the body and communicate to the caregiver on distance and a wireless energising platform designed to power remote controlled implants wirelessly through intact skin. Implantica is listed on Nasdaq First North Premier Growth Market (ticker: IMP A SDB). Visit www.implantica.com for further information.

Newsroom
https://www.implantica.com/media/media-kit

Media Contact:
Implantica AG
Juanita Eberhart, VP Marketing & Advocacy
M: +1 925-381-4581
juanita.eberhart@implantica.com 

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/implantica/r/notice-of-annual-general-meeting-of-implantica-ag,c4140327

The following files are available for download:

https://mb.cision.com/Main/19732/4140327/3409554.pdf

Notice of 2025 Annual General Meeting of Implantica AG

https://mb.cision.com/Public/19732/4140327/90ea26b536ff7c5d.pdf

Form for advanced postal voting

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Resideo To Release Second Quarter 2026 Financial Results on August 12, 2026

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SCOTTSDALE, Ariz., July 22, 2026 /PRNewswire/ — Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets, will release second quarter 2026 financial results after the close of the New York Stock Exchange on Wednesday, August 12, 2026. A webcast to discuss the results will be held on Wednesday, August 12, 2026, at 5:00 p.m. EDT.

Event: Resideo Second Quarter 2026 Financial Results Conference Call
Date: Wednesday, August 12, 2026
Time: 5:00 p.m. EDT / 2:00 p.m. PDT
Webcast link: REZI Q2’26 Call

About Resideo
Resideo is a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets. We are a leader in the home heating, ventilation, and air conditioning controls markets, smoke and carbon monoxide detection home safety and fire suppression products markets, and security products markets. Our solutions and services can be found in over 150 million residential and commercial spaces globally, with tens of millions new devices sold annually. For more information about Resideo and our trusted, well-established brands including First Alert, Honeywell Home, BRK, Control4, and others, visit www.resideo.com.

Contacts:

Investors:

Media:

Christopher T. Lee

Garrett Terry

Global Head of Strategic Finance

Corporate Communications Manager

chris.lee@resideo.com

garrett.terry@resideo.com

 

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SOURCE Resideo Technologies, Inc.

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Synopsys Announces Earnings Release Date for Third Quarter Fiscal Year 2026

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Registration Now Open for September Investor Day

SUNNYVALE, Calif., July 22, 2026 /PRNewswire/ — Synopsys, Inc. (Nasdaq: SNPS) today announced it will report results for the third quarter fiscal year 2026 on Wednesday, August 26, 2026, after market close. The company will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to review its financial results and business outlook.

Financial and other statistical information to be discussed on this conference call will be available on the corporate website at www.investor.synopsys.com immediately before the call. A live webcast will also be available on this site. Participants should access the live webcast at least 10 minutes prior to the start of the call. A webcast replay will be available beginning August 26, 2026, at approximately 5:00 p.m. PT. The replay will be available until Synopsys announces its fourth quarter and fiscal year 2026 results.

The company will hold an Investor Day in New York City on September 30, 2026, featuring presentations and a question-and-answer session. Registration for in-person and virtual attendance is now available on the corporate website at www.investor.synopsys.com. 

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver industry-leading silicon design, IP, simulation and analysis solutions, and design services. We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com

© 2026 Synopsys, Inc. All rights reserved. Synopsys, Ansys, the Synopsys and Ansys logos, and other Synopsys trademarks are available at https://www.synopsys.com/company/legal/trademarks-brands.html. Other company or product names may be trademarks of their respective owners.

Investor Contact:
Christine Salvi-Sullivan
Synopsys, Inc.
(650) 584-1901

Editorial Contact:
Cara Walker
Synopsys, Inc.
650-584-5000
corp-pr@synopsys.com

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IBM RELEASES SECOND-QUARTER RESULTS

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Company provides updated full-year expectations

ARMONK, N.Y., July 22, 2026 /PRNewswire/ — IBM (NYSE: IBM) today announced second-quarter 2026 earnings results.

“We are confident in IBM’s strategy and portfolio, and in our ability to capture growth opportunities ahead. We fundamentally believe that we are in the early innings of a structural shift for business, and that our portfolio – across software, infrastructure, and consulting – is well-positioned to help our clients tap the value, and manage the challenges, of an AI-driven future,” said Arvind Krishna, IBM chairman, president and chief executive officer. “In addition, we are taking action to accelerate our revenue growth and profitability, driving productivity across the company with AI and automation, and heavily investing in commercializing innovation at speed and scale. We now expect constant currency revenue growth in the range of four-to-five percent, and we continue to expect free cash flow to increase by about $1 billion year-over-year for the full year.”

Full-Year 2026 Expectations

Revenue: The company now expects full-year constant currency revenue growth in the range of four-to-five percent. At current foreign exchange rates, currency is expected to be neutral to growth for the year
Free cash flow: The company continues to expect full-year free cash flow to increase by about $1 billion year-over-year

Operational Focus Areas

High-Growth Portfolio: Areas of IBM’s software business that help clients manage, deploy and build AI-ready solutions, like Red Hat, the watsonx portfolio, HashiCorp, and Confluent continue to deliver strong performance. Within Distributed Infrastructure, Power and Storage grew at a record pace in the second quarter, now having built up an order backlog of nearly $500 million. Together, these offerings closely map to where client demand is strongest. To capture these growth opportunities, IBM is accelerating changes to its go-to-market model by expanding sales coverage across thousands of additional clients where there is significant opportunity. As AI adoption moves from experimentation to enterprise-scale deployment, the company is also investing in more specialized technical and client-facing talent, including Forward Deployed Engineers.

Rapid Innovation at Scale: IBM is acting decisively to capture new opportunities as they arise. Lightwell, a new capability to address open source security vulnerabilities, leverages IBM and Red Hat’s trust within the open source community, unique approach to AI, and global scale. In the first two weeks of availability, Lightwell has already made more than 7,500 open source patches available to help clients secure vulnerabilities. Additionally, quantum computing continues to be an investment priority for the company. In May, with the U.S. Department of Commerce, IBM announced a letter of intent to build Anderon, the world’s first pure-play quantum wafer foundry. IBM will invest more than $10 billion in quantum over the next five years, and remains on track to deliver the first large-scale fault-tolerant quantum computer by 2029.

Productivity Enables Investment and Value: IBM is accelerating productivity by scaling software development leveraging AI, increasing the effectiveness of its sales and marketing organization, and optimizing its supply chain. These efforts help enhance margin and free cash flow, and strengthen the company’s ability to capture significant growth opportunities. The company now expects improved pre-tax income margin expansion for the full year.

“Although we faced revenue headwinds late in the second quarter, we continued to focus on the fundamentals of our business, including driving productivity, strengthening our portfolio, and generating free cash flow,” said James Kavanaugh, IBM senior vice president and chief financial officer. “In a quarter like this, it is critical that our financial and operational discipline remains strong and that we continue to invest for growth while returning value to shareholders through our dividend.”

 

SECOND-QUARTER 2026 INCOME STATEMENT SUMMARY

 

Revenue

 

Gross

Profit

 
 

Gross

Profit

Margin

 
 

Pre-tax

Income

 

Pre-tax

Income

Margin

 

Net

Income

 

Diluted

Earnings

Per Share

GAAP from

Continuing

Operations

$ 17.2 B

 
 

$  9.9  B

 
 

57.7

%

 

$  2.5  B

 
 

14.4

%

 

$  2.2  B

 
 

$   2.27

 

Year/Year

1

%

 

(1)

%

 

(1.0)

Pts

 

(5)

%

 

(0.9)

Pts

 

(1)

%

 

(2)

%

Operating

(Non-GAAP)

 
 
 

$ 10.2 B

 
 

59.4

%

 

$  3.3  B

 
 

19.2

%

 

$  2.8  B

 
 

$   2.93

 

Year/Year

 
 
 

0

%

 

(0.7)

Pts

 

3

%

 

0.3

Pts

 

5

%

 

5

%

Segment Results for Second Quarter

Software — revenues of $7.8 billion, up 5 percent:
– Hybrid Cloud (Red Hat) up 11 percent
– Automation up 4 percent, up 3 percent at constant currency
– Data up 19 percent, up 18 percent at constant currency
– Transaction Processing down 8 percent, down 9 percent at constant currency

Consulting — revenues of $5.3 billion, flat, up 1 percent at constant currency:
– Strategy and Technology flat, up 1 percent at constant currency
– Intelligent Operations flat, up 1 percent at constant currency

Infrastructure — revenues of $3.8 billion, down 7 percent:
– Hybrid Infrastructure down 10 percent
      — IBM Z down 42 percent
      — Distributed Infrastructure up 37 percent
– Infrastructure Support down 1 percent

Financing — revenues of $0.2 billion, up 12 percent, up 11 percent at constant currency

Cash Flow and Balance Sheet

In the second quarter, the company generated net cash from operating activities of $2.6 billion, up $0.9 billion year to year. IBM’s free cash flow was $2.5 billion, down $0.3 billion year to year. The company returned $1.6 billion to shareholders in dividends in the second quarter.

For the first six months of the year, the company generated net cash from operating activities of $7.8 billion, up $1.7 billion year to year. IBM’s free cash flow was $4.8 billion, flat year to year.

IBM ended the second quarter with $8.2 billion of cash, restricted cash and marketable securities, down $6.3 billion from year-end 2025. The company invested $10.5 billion in acquisitions this year. Debt, including IBM Financing debt of $13.0 billion, totaled $62.0 billion, up $0.7 billion year to date.

Dividend Declaration

The IBM board of directors approved a regular quarterly cash dividend of $1.69 per common share, to stockholders of record on August 10, 2026. With payment of the September 10, 2026 dividend, IBM will have paid consecutive quarterly dividends every year since 1916.

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including, but not limited to, the following: a downturn in economic environment and client spending budgets; a failure of the company’s innovation initiatives; damage to the company’s reputation; risks from investing in growth opportunities; failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; the company’s ability to successfully manage acquisitions, alliances and divestitures, including integration challenges, failure to achieve objectives, the assumption or retention of liabilities and higher debt levels; fluctuations in financial results; impact of local legal, economic, political, health and other conditions; the company’s failure to meet growth and productivity objectives; ineffective internal controls; the company’s use of accounting estimates; impairment of the company’s goodwill or amortizable intangible assets; the company’s ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product and service quality issues; the development and use of AI, including the company’s increased AI solutions and use of AI technologies; impacts of business with government clients; reliance on third party distribution channels and ecosystems; cybersecurity and data protection considerations; adverse effects related to climate change and other environmental matters; tax matters; legal proceedings and investigatory risks; the company’s pension plans; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10-Qs, Form 10-K and in the company’s other filings with the U.S. Securities and Exchange Commission or in materials incorporated therein by reference.

Any forward-looking statement in this release 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.

Presentation of Information in this Press Release

In an effort to provide investors with additional information regarding the company’s results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information, which management believes provides useful information to investors:

adjusting for currency (i.e., at constant currency);
presenting operating (non-GAAP) earnings per share amounts and related income statement items;
free cash flow;
net cash from operating activities excluding IBM Financing receivables;
adjusted EBITDA;
adjusted EBITDA margin.

The rationale for management’s use of these non-GAAP measures is included in Exhibit 99.2 in the Form 8-K that includes this press release and is being submitted today to the SEC.

Conference Call and Webcast

IBM’s regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. ET, today. The Webcast may be accessed via a link at https://www.ibm.com/investor/events/earnings-2q26. Presentation charts will be available shortly before the Webcast.

Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).

Contact:      IBM
                    Tim Davidson, 914-844-7847
                    tfdavids@us.ibm.com 
    
                    Erin McElwee, 347-920-6825
                    erin.mcelwee@ibm.com

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

COMPARATIVE FINANCIAL RESULTS

(Unaudited; $ in millions except per share amounts)

 
 

Three Months Ended
June 30,

 
 

Six Months Ended
June 30,

 
 

2026

 
 

2025

 
 

2026

 
 

2025

 

REVENUE BY SEGMENT

 
 
 
 
 
 
 
 
 
 
 

Software

$        7,761

 
 

$        7,387

 
 

$       14,813

 
 

$       13,722

 

Consulting

5,327

 
 

5,314

 
 

10,599

 
 

10,382

 

Infrastructure

3,835

 
 

4,142

 
 

7,161

 
 

7,027

 

Financing

186

 
 

166

 
 

406

 
 

357

 

Other

52

 
 

(31)

 
 

100

 
 

30

 

TOTAL REVENUE

17,162

 
 

16,977

 
 

33,079

 
 

31,519

 
 
 
 
 
 
 
 
 
 
 
 
 

GROSS PROFIT

9,907

 
 

9,977

 
 

18,857

 
 

18,008

 
 
 
 
 
 
 
 
 
 
 
 
 

GROSS PROFIT MARGIN

 
 
 
 
 
 
 
 
 
 
 

Software

82.6

%

 

83.9

%

 

82.7

%

 

83.7

%

Consulting

28.9

%

 

27.5

%

 

28.2

%

 

27.4

%

Infrastructure

58.4

%

 

61.5

%

 

57.7

%

 

57.9

%

Financing

42.5

%

 

45.7

%

 

43.0

%

 

45.8

%

 
 
 
 
 
 
 
 
 
 
 
 

TOTAL GROSS PROFIT MARGIN

57.7

%

 

58.8

%

 

57.0

%

 

57.1

%

 
 
 
 
 
 
 
 
 
 
 
 

EXPENSE AND OTHER INCOME

 
 
 
 
 
 
 
 
 
 
 

SG&A

4,981

 
 

5,027

 
 

10,071

 
 

9,913

 

R&D

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

 

Pre-tax income margin

14.4

%

 

15.3

%

 

11.7

%

 

11.9

%

Provision for/(benefit from) income taxes

313

 
 

404

 
 

484

 
 

507

 

Effective tax rate

12.6

%

 

15.5

%

 

12.5

%

 

13.5

%

 
 
 
 
 
 
 
 
 
 
 
 

INCOME FROM CONTINUING OPERATIONS

$        2,166

 
 

$        2,193

 
 

$         3,382

 
 

$         3,248

 
 
 
 
 
 
 
 
 
 
 
 
 

DISCONTINUED OPERATIONS

 
 
 
 
 
 
 
 
 
 
 

Income/(loss)  from discontinued operations, net of

taxes

(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 (M’s)

 
 
 
 
 
 
 
 
 
 
 

Assuming dilution

953.3

 
 

948.0

 
 

952.7

 
 

946.7

 

Basic

941.2

 
 

930.8

 
 

939.9

 
 

929.4

 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

 

($ in millions)

 

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

 

6,044

 

8,112

Short-term financing receivables

 
 
 
 

  Held for investment, net

 

5,782

 

7,344

  Held for sale

 

874

 

1,131

Other accounts receivable, net

 

1,348

 

1,052

Inventories

 

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, net

 

5,736

 

5,899

Operating right-of-use assets, net

 

3,068

 

3,129

Long-term financing receivables, net

 

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

Intangibles, 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 liabilities

 

3,425

 

4,116

Total current liabilities

 

35,912

 

38,658

 
 
 
 
 

Long-term debt

 

56,212

 

54,836

Retirement-related 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

 

64,600

 

63,318

Retained earnings

 

155,937

 

155,648

Treasury stock – at cost

 

(170,934)

 

(170,605)

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

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

STATEMENT OF CASH FLOWS

(Unaudited)

 
 
 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

($ in millions)

 

2026

 

2025 (1)

 

2026

 

2025 (1)

Cash flows from operating activities:

 
 
 
 
 
 
 
 

Net income

 

$     2,165

 

$     2,194

 

$     3,381

 

$     3,249

Adjustments to reconcile net income to cash provided by operating

activities:

 
 
 
 
 
 
 
 

Depreciation (2)

 

533

 

578

 

1,088

 

1,114

Amortization of capitalized software and acquired intangible assets

 

817

 

687

 

1,535

 

1,328

Stock-based compensation

 

498

 

441

 

1,004

 

842

Net (gain)/loss on divestitures, asset sales and other

 

(67)

 

(18)

 

(78)

 

(40)

Changes in operating assets and liabilities, net of

acquisitions/divestitures

 

(1,349)

 

(2,180)

 

836

 

(421)

Net cash provided by operating activities

 

2,597

 

1,701

 

7,766

 

6,071

 
 
 
 
 
 
 
 
 

Cash flows from investing activities:

 
 
 
 
 
 
 
 

Payments for property, plant and equipment

 

(229)

 

(209)

 

(461)

 

(454)

Proceeds from disposition of property, plant and equipment/other

 

23

 

37

 

31

 

111

Investment in software

 

(154)

 

(164)

 

(313)

 

(314)

Purchases of marketable securities and other investments

 

(1,259)

 

(1,255)

 

(2,871)

 

(7,740)

Proceeds from disposition of marketable securities and other

investments

 

1,152

 

4,036

 

3,123

 

4,962

Acquisition of businesses, net of cash acquired

 

(15)

 

(747)

 

(10,480)

 

(7,845)

Divestiture of businesses, net of cash transferred

 

 

 

1

 

(1)

Net cash provided by/(used in) investing activities

 

(481)

 

1,698

 

(10,970)

 

(11,281)

 
 
 
 
 
 
 
 
 

Cash flows from financing activities:

 
 
 
 
 
 
 
 

Proceeds from new debt

 

0

 

7

 

7,437

 

8,385

Payments to settle debt

 

(4,213)

 

(1,308)

 

(7,141)

 

(2,565)

Short-term borrowings/(repayments) less than 90 days – net

 

1

 

0

 

0

 

(29)

Common stock repurchases for tax withholdings

 

(116)

 

(153)

 

(465)

 

(437)

Proceeds from issuance of shares

 

240

 

186

 

418

 

401

Financing – other

 

(49)

 

(22)

 

(91)

 

(54)

Cash dividends paid

 

(1,590)

 

(1,563)

 

(3,166)

 

(3,112)

Net cash provided by/(used in) financing activities

 

(5,728)

 

(2,855)

 

(3,008)

 

2,589

 
 
 
 
 
 
 
 
 

Effect of exchange rate changes on cash, cash equivalents and restricted

cash

 

(35)

 

320

 

(211)

 

487

Net change in cash, cash equivalents and restricted cash

 

(3,646)

 

865

 

(6,423)

 

(2,134)

 
 
 
 
 
 
 
 
 

Cash, cash equivalents and restricted cash at the beginning of the period

 

10,864

 

11,161

 

13,640

 

14,160

Cash, cash equivalents and restricted cash at the end of the period

 

$     7,217

 

$   12,026

 

$     7,217

 

$   12,026

_____________________

(1) Reclassified to align with the Consolidated Statement of Cash Flows presentation.

(2) Includes operating lease right-of-use assets amortization.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

($ in billions)

 

2026

2025

Yr/Yr

 

2026

2025

Yr/Yr

Net income as reported (GAAP)

 

$   2.2

$   2.2

$  0.0

 

$   3.4

$   3.2

$  0.1

Less: income from discontinued operations, net of tax

 

0.0

0.0

0.0

 

0.0

0.0

0.0

Income from continuing operations

 

2.2

2.2

0.0

 

3.4

3.2

0.1

Provision for/(benefit from) income taxes from continuing ops.

 

0.3

0.4

(0.1)

 

0.5

0.5

0.0

Pre-tax income from continuing operations (GAAP)

 

2.5

2.6

(0.1)

 

3.9

3.8

0.1

Non-operating adjustments (before tax)

 
 
 
 
 
 
 
 

Acquisition-related charges (1)

 

0.7

0.6

0.1

 

1.4

1.1

0.2

Non-operating retirement-related costs/(income)

 

0.1

0.0

0.1

 

0.2

0.0

0.1

 
 
 
 
 
 
 
 
 

Operating (non-GAAP) pre-tax income from continuing ops.

 

3.3

3.2

0.1

 

5.4

4.9

0.5

 
 
 
 
 
 
 
 
 

Net interest expense

 

0.4

0.3

0.1

 

0.7

0.6

0.1

Depreciation/amortization of non-acquired intangible assets

 

0.7

0.7

0.0

 

1.4

1.4

0.0

Stock-based compensation

 

0.5

0.4

0.1

 

1.0

0.8

0.2

Workforce rebalancing charges

 

0.0

0.0

0.0

 

0.4

0.3

0.0

Corporate (gains) and charges (2)

 

(0.1)

0.0

(0.1)

 

(0.1)

0.0

(0.1)

 
 
 
 
 
 
 
 
 

Adjusted EBITDA

 

$   4.8

$   4.7

$  0.1

 

$   8.8

$   8.1

$  0.7

 
 
 
 
 
 
 
 
 

Revenue

 

$ 17.2

$ 17.0

1 %

 

$ 33.1

$ 31.5

5 %

GAAP net income margin

 

12.6 %

12.9 %

(0.3)pts

 

10.2 %

10.3 %

(0.1)pts

Adjusted EBITDA margin

 

27.8 %

27.6 %

0.2pts

 

26.5 %

25.7 %

0.8pts

___________________

(1) Primarily consists of amortization of acquired intangible assets.

(2) Primarily consists of unique corporate actions such as gains on divestitures and asset sales.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

SEGMENT DATA

(Unaudited)

 
 
 

Three Months Ended June 30, 2026

 
 
 
 
 
 
 
 
 
 
 
 
 
 

($ in millions)

 

Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$          7,761

 
 

$          5,327

 
 

$           3,835

 
 

$           186

 

Segment profit

 

$          2,502

 
 

$             647

 
 

$              835

 
 

$           108

 

Segment profit margin

 

32.2

%

 

12.1

%

 

21.8

%

 

58.0

%

Change YTY revenue

 

5.1

%

 

0.2

%

 

(7.4)

%

 

12.2

%

Change YTY revenue – constant currency

 

4.6

%

 

1.1

%

 

(7.4)

%

 

11.3

%

 
 
 

Three Months Ended June 30, 2025

 
 
 
 
 
 
 
 
 
 
 
 
 
 

($ in millions)

 

 Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$          7,387

 
 

$          5,314

 
 

$           4,142

 
 

$           166

 

Segment profit

 

$          2,296

 
 

$             562

 
 

$              965

 
 

$           179

 

Segment profit margin

 

31.1

%

 

10.6

%

 

23.3

%

 

107.9

%

 
 
 

Six Months Ended June 30, 2026

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$        14,813

 
 

$        10,599

 
 

$           7,161

 
 

$           406

 

Segment Profit

 

$          4,601

 
 

$          1,205

 
 

$           1,360

 
 

$           226

 

Segment Profit Margin

 

31.1

%

 

11.4

%

 

19.0

%

 

55.8

%

Change YTY Revenue

 

7.9

%

 

2.1

%

 

1.9

%

 

13.6

%

Change YTY Revenue – Constant Currency

 

6.1

%

 

1.0

%

 

0.5

%

 

10.7

%

 
 
 

Six Months Ended June 30, 2025

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

 Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$        13,722

 
 

$        10,382

 
 

$           7,027

 
 

$           357

 

Segment Profit

 

$          4,143

 
 

$          1,121

 
 

$           1,213

 
 

$           248

 

Segment Profit Margin

 

30.2

%

 

10.8

%

 

17.3

%

 

69.3

%

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; $ in millions except per share amounts)

 
 

Three Months Ended June 30, 2026

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-

GAAP)

 

Gross profit

$  9,907

 
 

$                    287

 
 

$                    —

 
 

$         —

 
 

$       10,194

 

Gross profit margin

57.7

%

 

1.7

pts

 

pts

 

pts

 

59.4

%

SG&A

$  4,981

 
 

$                   (421)

 
 

$                    —

 
 

$         —

 
 

$         4,560

 

Other (income) & expense

(185)

 
 

1

 
 

(96)

 
 

 
 

(280)

 

Total expense & other (income)

7,428

 
 

(429)

 
 

(96)

 
 

 
 

6,903

 

Pre-tax income from continuing operations

2,479

 
 

716

 
 

96

 
 

 
 

3,290

 

Pre-tax income margin from continuing

operations

14.4

%

 

4.2

pts

 

0.6

pts

 

pts

 

19.2

%

Provision for/(benefit from) income taxes (3)

$     313

 
 

$                    167

 
 

$                   20

 
 

$          (2)

 
 

$            498

 

Effective tax rate

12.6

%

 

2.3

pts

 

0.2

pts

 

(0.1)

pts

 

15.1

%

Income from continuing operations

$  2,166

 
 

$                    548

 
 

$                   76

 
 

$           2

 
 

$         2,792

 

Income margin from continuing operations

12.6

%

 

3.2

pts

 

0.4

pts

 

0.0

pts

 

16.3

%

Diluted earnings per share: continuing

operations

$    2.27

 
 

$                   0.58

 
 

$                0.08

 
 

$      0.00

 
 

$           2.93

 
 
 

Three Months Ended June 30, 2025

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-

GAAP)

 

Gross profit

$  9,977

 
 

$                    225

 
 

$                    —

 
 

$         —

 
 

$       10,202

 

Gross profit margin

58.8

%

 

1.3

pts

 

pts

 

pts

 

60.1

%

SG&A

$  5,027

 
 

$                   (348)

 
 

$                    —

 
 

$         —

 
 

$         4,679

 

Other (income) & expense

(39)

 
 

(1)

 
 

(25)

 
 

 
 

(65)

 

Total expense & other (income)

7,380

 
 

(350)

 
 

(25)

 
 

 
 

7,005

 

Pre-tax income from continuing operations

2,597

 
 

575

 
 

25

 
 

 
 

3,197

 

Pre-tax income margin from continuing

operations

15.3

%

 

3.4

pts

 

0.1

pts

 

pts

 

18.8

%

Provision for/(benefit from) income taxes (3)

$     404

 
 

$                    132

 
 

$                     9

 
 

$         —

 
 

$            545

 

Effective tax rate

15.5

%

 

1.3

pts

 

0.2

pts

 

pts

 

17.0

%

Income from continuing operations

$  2,193

 
 

$                    443

 
 

$                   17

 
 

$         —

 
 

$         2,652

 

Income margin from continuing operations

12.9

%

 

2.6

pts

 

0.1

pts

 

pts

 

15.6

%

Diluted earnings per share: continuing

operations

$    2.31

 
 

$                   0.47

 
 

$                0.02

 
 

$         —

 
 

$           2.80

 

____________________

(1) Includes amortization of acquired intangible assets and acquisition-related charges such as in-process research and development, transaction

      costs, applicable retention, restructuring and related expenses, tax charges related to acquisition integration, and pre-closing charges, such as

      financing costs.

(2) Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan

      curtailments/settlements and pension insolvency costs and other costs.

(3) The tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to

      the GAAP pre-tax income.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; $ in millions except per share amounts)

 
 
 
 

Six Months Ended June 30, 2026

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 

Tax

Reform

Impacts

 
 

Operating

(Non-

GAAP)

 

Gross Profit

$ 18,857

 
 

$                  524

 
 

$                    —

 
 

$         —

 
 

$   19,380

 

Gross Profit Margin

57.0

%

 

1.6

pts

 

pts

 

pts

 

58.6

%

SG&A

$ 10,071

 
 

$                (829)

 
 

$                    —

 
 

$         —

 
 

$     9,242

 

Other (Income) & Expense

(186)

 
 

1

 
 

(192)

 
 

 
 

(378)

 

Total Expense & Other (Income)

14,991

 
 

(838)

 
 

(192)

 
 

 
 

13,961

 

Pre-tax Income from Continuing Operations

3,866

 
 

1,361

 
 

192

 
 

 
 

5,419

 

Pre-tax Income Margin from Continuing

Operations

11.7

%

 

4.1

pts

 

0.6

pts

 

pts

 

16.4

%

Provision for/(Benefit from) Income Taxes (3)

$      484

 
 

$                 305

 
 

$                   23

 
 

$         (6)

 
 

$        806

 

Effective Tax Rate

12.5

%

 

2.5

pts

 

0.0

pts

 

(0.1)

pts

 

14.9

%

Income from Continuing Operations

$   3,382

 
 

$              1,056

 
 

$                 169

 
 

$           6

 
 

$     4,613

 

Income Margin from Continuing Operations

10.2

%

 

3.2

pts

 

0.5

pts

 

0.0

pts

 

13.9

%

Diluted Earnings Per Share: Continuing

Operations

$     3.55

 
 

$                1.11

 
 

$                0.18

 
 

$     0.01

 
 

$       4.84

 
 
 

Six Months Ended June 30, 2025

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-

GAAP)

 

Gross Profit

$ 18,008

 
 

$                  426

 
 

$                    —

 
 

$         —

 
 

$   18,434

 

Gross Profit Margin

57.1

%

 

1.4

pts

 

pts

 

pts

 

58.5

%

SG&A

$   9,913

 
 

$                (701)

 
 

$                    —

 
 

$         —

 
 

$     9,212

 

Other (Income) & Expense

(204)

 
 

(1)

 
 

(48)

 
 

 
 

(253)

 

Total Expense & Other (Income)

14,253

 
 

(706)

 
 

(48)

 
 

 
 

13,499

 

Pre-tax Income from Continuing Operations

3,755

 
 

1,132

 
 

48

 
 

 
 

4,935

 

Pre-tax Income Margin from Continuing

Operations

11.9

%

 

3.6

pts

 

0.2

pts

 

pts

 

15.7

%

Provision for/(Benefit from) Income Taxes (3)

$      507

 
 

$                 260

 
 

$                    (3)

 
 

$           2

 
 

$        766

 

Effective Tax Rate

13.5

%

 

2.2

pts

 

(0.2)

pts

 

0.0

pts

 

15.5

%

Income from Continuing Operations

$   3,248

 
 

$                 872

 
 

$                   51

 
 

$         (2)

 
 

$     4,169

 

Income Margin from Continuing Operations

10.3

%

 

2.8

pts

 

0.2

pts

 

0.0

pts

 

13.2

%

Diluted Earnings Per Share: Continuing

Operations

$     3.43

 
 

$                0.92

 
 

$                0.05

 
 

$     0.00

 
 

$       4.40

 

____________________

(1) Includes amortization of acquired intangible assets, and acquisition-related charges such as in-process research and development, transaction

      costs, applicable retention, restructuring and related expenses, tax charges related to acquisition integration, and pre-closing charges, such as

      financing costs.

(2) Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan

      curtailments/settlements and pension insolvency costs and other costs.

(3) The tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to

      the GAAP pre-tax income.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO FREE CASH FLOW RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

($ in millions)

 

2026

 

2025

 

2026

 

2025

Net cash provided by operating activities per GAAP

 

$     2,597

 

$     1,701

 

$     7,766

 

$     6,071

 
 
 
 
 
 
 
 
 

Less: change in IBM Financing receivables

 

(302)

 

(1,480)

 

2,264

 

606

 
 
 
 
 
 
 
 
 

Net cash from operating activities excl. IBM Financing receivables

 

2,899

 

3,182

 

5,503

 

5,465

 
 
 
 
 
 
 
 
 

Capital expenditures, net

 

(359)

 

(336)

 

(743)

 

(657)

 
 
 
 
 
 
 
 
 

Free cash flow

 

$     2,540

 

$     2,845

 

$     4,760

 

$     4,808

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

($ in billions)

 

2026

 

2025

 

2026

 

2025

Net cash provided by operating activities

 

$   2.6

 

$   1.7

 

$   7.8

 

$   6.1

 
 
 
 
 
 
 
 
 

Add:

 
 
 
 
 
 
 
 

Net interest expense

 

0.4

 

0.3

 

0.7

 

0.6

Provision for/(benefit from) income taxes from continuing operations

 

0.3

 

0.4

 

0.5

 

0.5

 
 
 
 
 
 
 
 
 

Less change in:

 
 
 
 
 
 
 
 

Financing receivables

 

(0.3)

 

(1.5)

 

2.3

 

0.6

Net (gain)/loss on divestitures, assets sales and other (1)

 

(0.1)

 

0.0

 

(0.1)

 

0.0

Other assets and liabilities/other, net (1,2)

 

(1.1)

 

(0.7)

 

(2.0)

 

(1.5)

 
 
 
 
 
 
 
 
 

Adjusted EBITDA

 

$   4.8

 

$   4.7

 

$   8.8

 

$   8.1

 
 
 
 
 
 
 
 
 

Revenue

 

$ 17.2

 

$ 17.0

 

$ 33.1

 

$ 31.5

Net cash provided by operating activities margin

 

15.1 %

 

10.0 %

 

23.5 %

 

19.3 %

Adjusted EBITDA margin

 

27.8 %

 

27.6 %

 

26.5 %

 

25.7 %

____________________

(1) Reclassified to align with the presentation of similar line items in the Statement of Cash Flows.

(2) Mainly consists of Changes in operating assets and liabilities, net of acquisitions/divestitures in the Statement of Cash Flows chart,

      workforce rebalancing charges, non-operating impacts, and corporate (gains) and charges, less the change in Financing receivables.

 

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SOURCE IBM

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