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IBM RELEASES SECOND-QUARTER RESULTS

Published

3 months ago

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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.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/ibm-releases-second-quarter-results-302832559.html

SOURCE IBM

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Sesame Software Named Fastest to Implement and Best Estimated ROI in G2’s Fall 2026 Reports, Previews Sesame Software 7.0

Published

22 minutes ago

on

October 27, 2026

By

Mid-market recognition from verified users caps a strong 2026 as the company announces the beta of its biggest platform release in years

SANTA CLARA, Calif., Oct. 27, 2026 /PRNewswire/ — Sesame Software, the Enterprise Data Management leader, today announced it has earned two mid-market badges in G2’s Fall 2026 reports, Fastest Implementation and Best Estimated ROI, based on verified user reviews. Heading into 2027, the company also previewed Sesame Software 7.0, its biggest platform release in years, with a beta opening this winter.

Recognized by G2 Users

The badges reflect what users say about Sesame Software: it’s up and running in minutes, needs no coding or data mapping, and pays for itself quickly. Teams use it to replicate data in near real time, build pipelines into warehouses like Snowflake, back up and archive records, and run verified migrations between systems.

“Customers don’t want a data project. They want their data where they need it, working as soon as possible,” said Joshua Demumbreum, Director of Product Operations, Sesame Software. “Hearing that back from users, in their own words, is a great way to close the year.”

Coming Soon: Sesame Software 7.0

What’s new in 7.0:

New interface: fewer clicks, easier navigation, clearer logs, and reporting on which records each job movesRebuilt engine: faster jobs, bigger data volumes and fewer failures, with data cleanup built into every jobRewritten connectors: simpler templates that behave the same across every connectorSimpler upkeep: Java 25 support, embedded Tomcat, and one-step upgrades

“After 30-plus years in enterprise data, 7.0 is our biggest step forward yet,” said Nathan Lugert, Senior Software Engineer, Sesame Software. “We can’t wait to get it into users’ hands.”

About Sesame Software

Sesame Software is the Enterprise Data Management leader, delivering data rapidly for enhanced reporting and analytics. Sesame Software’s data platform offers superior solutions for data warehousing, integration, as well as backup, and compliance to fit your business needs. Quickly connect to SaaS, on-premise, and cloud applications for accelerated insights. With over 30 years of expertise, Sesame Software helps businesses take back control of their data, access it from anywhere, ensure security and compliance, and unlock its power to grow.

Media Contact:
Kristen Besselsen, Director of Marketing
kristen.besselsen@sesamesoftware.com
www.sesamesoftware.com

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SOURCE Sesame Software

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RS earned three awards at the 2026 Moxa Global Distributor Summit

Published

22 minutes ago

on

October 27, 2026

By

The three awards recognize RS for demonstrable leadership in small to medium-sized business sales, energy sector sales, and regional sales.

FORT WORTH, Texas, Oct. 27, 2026 /PRNewswire/ — RS, a high-service global product and service solutions provider for industrial customers, earned three top awards at the 2026 Moxa Global Distributor Summit. Held in Nashville, Tennessee, September 8–11, this exclusive summit welcomed Moxa team members and partners from all over the world to “Collaborate to Lead” and discuss business and strategy updates, emerging industrial infrastructure trends, secure OT connectivity, and next-generation technologies like AI data centers and energy storage.

RS combines immediate access to Moxa products with deep technical expertise to solve complex operational challenges.

During the event, Moxa — a global leader in industrial networking, computing, and edge connectivity solutions — presented RS Americas with its:

2026 Top Global Sales Award for small to medium-sized businesses2026 Top Global Sales Award for energy businesses2026 Platinum Award for top sales in the Americas region

These awards recognize RS for outstanding sales achievements and exceptional partnership in three key market segments. Together, RS and Moxa deliver secure network deployments and reliable edge connectivity for industrial automation customers across the manufacturing, energy, and commercial sectors.

“Partnering with Moxa enables us to provide industrial customers with the high-performance networking technologies they need to advance their digital transformation and build resilient operations,” said Marie Dawson, Sr. Director of Strategic Supplier Engagement at RS. “Earning three top honors at the 2026 Moxa Global Distributor Summit validates our approach — combining immediate access to quality Moxa products with deep technical expertise to solve complex operational challenges and keep critical infrastructure running across industries.”

“RS continues to demonstrate outstanding leadership in advancing edge connectivity and network reliability across key industrial sectors,” said Mat Stewart, Vice President of Sales at Moxa. “We are proud to recognize the RS Americas team for their exceptional global and regional performance over the past year and look forward to building on this momentum together.”

To learn more about the RS portfolio of Moxa products and solutions, visit the embedded links.

PR Image Download:
RS Moxa Awards PR.jpg

PR Image Caption:
The RS Americas team accepted three top sales performance awards at the 2026 Moxa Global Distributor Summit. Pictured from left to right: Moxa Americas Vice President of Sales Mat Stewart, RS Americas Product Director Chris Cole, RS Americas Eastern Regional Sales Manager John Allen, RS Americas Senior Director of Strategic Supplier Engagement Marie Dawson, RS Americas Supplier Manager Evie Hooper, RS Americas Category Manager Megan Shaw, Moxa Americas Director of Channel Sales Pat Sweeney, RS Americas Product Portfolio Manager Gary Guess, and Moxa Americas President Chad Chesney.

About RS
RS is a high-service global product and service solutions provider for industrial customers, enabling them to operate efficiently and sustainably. We operate in 33 markets, stock over 875,000 industrial and specialist products, and list an additional five million relevant for our industrial customers, sourced from over 2,500 suppliers. This extensive range supports our customers across the industrial lifecycle of designing, building, and maintaining equipment and operations. We enhance their experience through a tailored service model, leveraging our efficient physical, digital, and process infrastructure sustainably. We combine a technically led and digitally enabled approach with an exceptional team of experts; ultimately, it’s our people that make the difference. Our purpose, making amazing happen for a better world, reflects our focus on delivering results for people, planet, and profit.

RS Group plc is listed on the London Stock Exchange with stock ticker RS1, and in the year ended March 31, 2026, reported revenue of $3,871.07 million. For more information, please visit https://www.rsgroup.com/ or connect with us on LinkedIn or X (Twitter).

About RS in the Americas
In the Americas region, RS stocks more than 250,000 industrial and electronic products from more than 700 trusted suppliers. These solutions cover categories extending from automation and control equipment to interconnect, passive, active, and electromechanical components and include more than 90,000 high-quality, competitively priced RS PRO products. For more information, please visit https://us.rs-online.com or connect with us via social media on LinkedIn, Facebook, and YouTube.

Editorial Contact & Media Inquiries:
Laurie Tortorello, Director of People & Culture Communications, RS Americas
Laurie.Tortorello@rsgroup.com

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SOURCE RS

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Union Home Mortgage Selected for USDA Rural Development Delegated Authority Pilot Program

Published

22 minutes ago

on

October 27, 2026

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One of six lenders chosen nationwide to deliver an enhanced USDA loan experience for eligible rural borrowers

STRONGSVILLE, Ohio, Oct. 27, 2026 /PRNewswire/ — Union Home Mortgage (UHM), a high-growth independent mortgage banking company with a world-class culture, announced today that it has been selected by the U.S. Department of Agriculture Rural Development to participate in the expanded Delegated Authority Lender Interactive Test Environment (LITE) Pilot Program for the Single Family Housing Guaranteed Loan Program, further strengthening the company’s ability to serve homebuyers in rural communities across the country. UHM is one of six lenders nationwide chosen to join the initiative, which begins on December 1, 2026.

The pilot program grants participating lenders greater authority in the loan approval and closing process, allowing qualified borrowers to move through the mortgage journey more efficiently while maintaining rigorous underwriting and compliance standards. By reducing pre-closing approval requirements from USDA, the program is designed to accelerate loan processing timelines and expand homeownership opportunities for eligible families in rural communities across the country.

“We are honored to partner with USDA Rural Development to help rural borrowers access more opportunities to achieve the dream of homeownership, which is one of the most powerful ways to build financial stability and strengthen communities,” said Bill Cosgrove, CEO of Union Home Mortgage. “Being selected for this pilot program reflects our commitment to providing world-class service and innovative solutions to our borrowers, and we thank USDA for entrusting us with this increased responsibility.”

Through the USDA Single Family Housing Guaranteed Loan Program, eligible low- and moderate-income borrowers can access affordable financing options, including 100% financing for homes in qualifying rural areas. According to USDA Rural Development, homebuyers can buy existing, build new, or cover the cost of rehabilitating, improving, or relocating a home with a Single Family Housing loan guarantee. As a participant in the Delegated Authority LITE Pilot Program, UHM will be positioned to deliver these benefits with greater speed and efficiency while continuing to provide personalized guidance throughout the homebuying journey.

The selection further underscores UHM’s reputation as a trusted lending partner and aligns with the lender’s focus on responsible growth, operational excellence, and expanding access to affordable mortgage solutions in communities of all sizes.

For more information about Union Home Mortgage, visit www.uhm.com. For information about USDA Rural Development housing programs, visit www.rd.usda.gov.

About Union Home Mortgage
Union Home Mortgage Corp. (UHM) is a high-growth, full-service retail, wholesale, and consumer direct independent mortgage banking company with branches across the U.S. in 49 states + D.C. UHM is an in-house loan servicer offering world-class customer service through high touch communication & technology. A privately held family business, with a collaborative culture that stands out in the mortgage industry, UHM Partners (employees) are guided by a Code of Conduct that emphasizes respect, open communication, and accountability. All these principles translate to industry-leading customer retention and satisfaction. Some honors include being a Six-Year USA TODAY Top Workplace and a Twelve-Year Northeast Ohio Top Workplace. Learn more at www.uhm.com.

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SOURCE Union Home Mortgage

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