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Arvind Krishna’s Letter to IBM Investors

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ARMONK, N.Y., July 14, 2026 /PRNewswire/ —

IBM Investors –

This morning we are releasing selected preliminary second-quarter 2026 financial results. We are still working to close our financial reporting for the quarter and our final results could be slightly different.

For the second quarter:

Revenue:

Revenue of $17.2 billion, up 1 percentSoftware revenue up 5 percentConsulting revenue flat, up 1 percent at constant currencyInfrastructure revenue down 7 percent

Profit:

Gross Profit Margin: GAAP: 57.7 percent, down 100 basis points; Operating (Non-GAAP): 59.4 percent, down 70 basis pointsPre-Tax Income Margin: GAAP: 14.4 percent, down 90 basis points; Operating (Non-GAAP): 19.2 percent, up 30 basis points

Cash Flow:

Year to date, net cash from operating activities of $7.8 billion; free cash flow of $4.8 billion

EPS:

Diluted Earnings Per Share: GAAP: $2.27, down 2 percent; Operating (Non-GAAP): $2.93, up 5 percent

I want to spend some time explaining what we experienced in the quarter that led to the Software and Infrastructure performance shortfall you see above.

When we discussed our expectations with you in April, we noted that we would be wrapping on the launch of z17 in the second quarter. Given this was the strongest start to a mainframe program in our history, we expected Infrastructure revenue to decline low-single digits for the year, beginning this quarter. What played out was worse than our expectations, driven by a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing. In the last few weeks of June, we saw clients shift their quarterly capex spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases. This dynamic impacted client buying patterns. While we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization. In addition, clients were distracted with rapidly-evolving, industry-wide cybersecurity concerns in the quarter.

These conditions require our teams to execute perfectly, and this quarter we faltered. We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall.

These are not excuses, but they are realities. Our job is to help our clients through uncertainty, to find paths forward to grow their businesses no matter what is happening in the external environment.

While our second-quarter results are disappointing, our performance in many areas showed strength, reinforcing the conviction we have in our portfolio and strategy.

Within Software, Red Hat revenue growth accelerated sequentially to 11 percentRecent acquisitions including both HashiCorp and Confluent delivered strong performanceWith clients prioritizing infrastructure investments, Distributed Infrastructure had its best performance in reported history, up 37 percent with strong growth in Power and Storage, and a backlog of approximately $500 million exiting the quarterDespite challenges this quarter, z17 remains at nearly 130 percent program-to-program, well ahead of z16 which was our strongest program on record, with clients representing 85% of installed MIPs maintaining or growing capacityContinued growth in Consulting signings led by strong GenAI contributionProductivity initiatives contributed to continued operating (non-GAAP) PTI Margin expansion in the quarter

Importantly, we continue to innovate at speed and scale. After the introduction of Mythos, our teams across IBM and Red Hat quickly mobilized to take advantage of an unprecedented opportunity, launching Lightwell. Lightwell is a $5 billion commitment backed by new frontier AI capabilities and a global force of more than 20,000 engineers creating a trusted enterprise clearinghouse to address open source software vulnerabilities. Early adopters include organizations like Bank of America, BNY, Citi, Goldman Sachs, JPMorganChase, Mastercard, Morgan Stanley, Royal Bank of Canada, State Street, Visa, Wells Fargo and more. General availability of Lightwell was announced on July 8.

Finally, quantum computing is no longer decades away, it is upon us, and we are investing aggressively. Recently, with the U.S. Department of Commerce, we announced a letter of intent to build Anderon, the world’s first pure-play quantum wafer foundry supported by $1 billion in CHIPS incentives provided by the DoC and a $1 billion cash contribution by IBM. Shortly after that, we disclosed plans to invest more than $10 billion in quantum over the next five years, spanning R&D, capex, manufacturing scaling, M&A and ecosystem expansion. We remain on track to deliver the first large-scale fault-tolerant quantum computer by 2029.

While performance in the quarter was below our expectations, we have conviction in the strength of our portfolio and the strategic transformation of our business. To remedy challenges this quarter, we are undertaking new initiatives and accelerating others, all to improve our results going forward. We will hold our regularly scheduled conference call with you all on July 22, 2026, at 5PM ET to go into deeper detail and discuss our full-year expectations.

Arvind Krishna
Chairman, President and Chief Executive Officer, IBM
(NYSE: IBM)

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this letter 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 letter 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 Letter

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 letter 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.

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 letter and is being submitted today to the SEC.

Conference Call and Webcast

IBM’s regular quarterly earnings conference call is scheduled for Wednesday, July 22, 2026 at 5:00 p.m. ET. 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.

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

Contact:

IBM
Sarah Meron, 347-891-1770
sarah.meron@ibm.com 

Tim Davidson, 914-844-7847
tfdavids@us.ibm.com 

 

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)

Operating

(Non-GAAP)

Gross profit

$         9,907

$              287

$                —

$        10,194

Gross profit margin

57.7

%

1.7

pts

pts

59.4

%

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

19.2

%

Diluted earnings per share: continuing operations

$           2.27

$             0.58

$             0.08

$           2.93

Three Months Ended June 30, 2025

Continuing Operations

GAAP

Acquisition-

Related

Adjustments (1)

Retirement-

Related

Adjustments (2)

Operating

(Non-GAAP)

Gross profit

$         9,977

$              225

$                —

$        10,202

Gross profit margin

58.8

%

1.3

pts

pts

60.1

%

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

18.8

%

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.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION
GAAP OPERATING CASH FLOW TO FREE CASH FLOW RECONCILIATION
(Unaudited)

($ in millions)

Six Months Ended
June 30, 2026

Net cash provided by operating activities per GAAP

$                7,766

Less: change in IBM Financing receivables

2,264

Net cash from operating activities excl. IBM Financing receivables

5,503

Capital expenditures, net

(743)

Free cash flow

$                4,760

 

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SEI Expands ETF Platform with SEI QiM U.S. Equity Factor Allocation Active ETF (SEUS)

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Established Dynamic Active Multifactor Strategy Extends QiM’s Time-Tested Investment Process Through Single-Ticker ETF Solution

OAKS, Pa., July 14, 2026 /PRNewswire/ — SEI® (NASDAQ:SEIC) today announced the launch of the SEI QiM U.S. Equity Factor Allocation Active ETF (NASDAQ:SEUS), an actively managed core U.S. equity solution that brings SEI’s established U.S. Equity Factor Allocation strategy to the ETF market. Managed by SEI’s Quantitative Investment Management (QiM) team, SEUS provides access to a time-tested investment process through a transparent, cost-effective ETF structure that offers accessibility, scalability, and tax efficiency.

SEUS is based on the same dynamic active factor allocation approach that QiM has implemented across other investment vehicles, combining dynamic factor allocation, active stock selection, and disciplined risk management within a diversified equity portfolio. Designed as a core equity allocation, the ETF seeks to adapt as market conditions evolve while maintaining exposure to historically rewarded factors through a risk-aware investment process.

Powered by SEI’s Quantitative Investment Management team, which manages more than $30 billion in quantitative investment strategies as of March 31, 2026, SEUS leverages proprietary factor research, integrated risk models, and dedicated portfolio management oversight. The launch extends an established investment process through a flexible, transparent, and tax-efficient ETF structure, providing investors with access to the same underlying philosophy, research framework, and portfolio management expertise.

Commenting on the ETF launch, Robert Hum, Head of Investment Product and Commercialization at SEI, said:

“Markets are increasingly dynamic, and investors need strategies that can adapt alongside them. SEUS expands access to QiM’s established investment process, bringing a time-tested active multifactor strategy to investors through a transparent, tax-efficient, single-ticker ETF solution. By combining dynamic factor allocation, active stock selection, and disciplined risk management, SEUS is designed to help investors navigate evolving market environments while maintaining diversified U.S. equity exposure.”

About SEI®

SEI (NASDAQ:SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry. SEI tailors its solutions and services to help clients more effectively deploy their capital—whether that’s money, time, or talent—so they can better serve their clients and achieve their growth objectives. As of March 31, 2026, SEI manages, advises, or administers approximately $1.9 trillion in assets. For more information, visit seic.com.

SEI Investments Management Corporation (SIMC) is the advisor to the SEI Funds, which are distributed by SEI Investments Distribution Co. (SIDCO). SIMC and SIDCO are wholly owned subsidiaries of SEI Investments Company (SEI). The Quantitative Investment Management team is a team within SIMC.

To determine if the Funds are an appropriate investment for you, carefully consider the investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ summary and full prospectuses, which may be obtained by calling 1-800-DIAL-SEI. Read it carefully before investing.

There are risks involved with investing, including loss of principal. There is no guarantee an investment objective will be achieved, nor that risk can be managed successfully. Diversification may not protect against market risk. The Fund may trade securities actively, which could increase its transaction costs (thereby lowering its performance) and could increase the amount of taxes you owe by generating short-term gains, which may be taxed at a higher rate.

Mutual funds and ETFs are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing or to meet diversification requirements. However, ETFs are structured in such a manner that taxes are minimized compared to a similarly structured mutual fund. Trading shares of the ETFs will also generate tax consequences and transaction expenses.

There can be no assurance that performance will be enhanced or risk will be reduced for investment strategies that seek to provide exposure to certain quantitative factors. Exposure to such investment factors may detract from performance in certain market environments, in some cases for extended periods. In such circumstances, an investment strategy may seek to maintain exposure to the targeted investment factors and not adjust to target different factors, which could result in losses. While the Fund is actively managed, the investment process is expected to be heavily dependent on quantitative models, and the models may not perform as intended.

Forward-looking statements

This communication contains forward-looking statements within the meaning of the rules and regulations of the Securities and Exchange Commission. In some cases, you can identify forward looking statements by terminology, such as “may,” “will,” “expect,” “believe,” “can,” “continue,” “seek,” or similar expressions.

SEI’s forward-looking statements include its current expectations as to:

The benefits, if any, that our ETF products offer to investors

You should not place undue reliance on any forward-looking statements, as they are based on the current beliefs and expectations of management and are subject to significant risks and uncertainties, many of which are beyond management’s control or are subject to change. Although management believes the assumptions upon which the forward-looking statements are based are reasonable, they could be inaccurate. Some of the risks and important factors that could cause actual results to differ from those described in SEI’s forward looking statements can be found in the “Risk Factors” section of SEI’s Annual Report on Form 10 K for the year ended Dec. 31, 2025, filed with the Securities and Exchange Commission. SEI undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Media Contact:
Eric Hazard
Vested
+1 917-765-8720
eric@fullyvested.com

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SOURCE SEI Investments Company

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THINK Surgical Secures up to $65 Million of Growth Capital

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FREMONT, Calif., July 14, 2026 /PRNewswire/ — THINK Surgical, Inc., a leading innovator of orthopedic surgical robots, today announced it has entered into a debt facility with Symbiotic Capital which will provide up to $65 million of growth capital. The facility provided an initial funded tranche of $25 million, with an additional $15 million based on achievement of certain milestones, and up to $25 million of discretionary capital.

The proceeds will be used by THINK to continue to advance its dual channel commercial strategy for its TMINI® Miniature Robotic System, which is currently compatible with approximately 70% of the market share for total knee implants.1

Stuart Simpson, President, and Chief Executive Officer of THINK Surgical said “This facility, combined with recent additional investments by our existing investors, will allow us to continue our significant growth and development of TMINI, and is expected to fully finance the Company to profitability.” 

“We are excited about TMINI’s potential to advance surgical robotics in the field of orthopedics, and we are impressed by the compelling value proposition it offers to both physicians and patients,” said Himani Bhalla, Senior Managing Director and Chief Investment Officer of Symbiotic Capital.

Piper Sandler served as financial advisor to THINK on the transaction. 

About THINK Surgical, Inc. 

THINK Surgical, Inc., is a privately held U.S.-based technology innovator that develops and markets orthopedic robots. THINK Surgical robots are open platforms providing support for implant brands from multiple manufacturers, enabling the choice of implant to be driven by the surgeon.

THINK Surgical actively collaborates with healthcare professionals around the globe to refine our orthopedic products, improving the lives of those suffering from advanced joint disease with precise, accurate, and intelligent technology. Please refer to the instructions for use for the TMINI Miniature Robotic System for a complete list of indications, contraindications, warnings, and precautions. For additional product information, please visit www.thinksurgical.com.

THINK Surgical and TMINI are registered trademarks of THINK Surgical, Inc.

About Symbiotic Capital (symbcap.com)

Symbiotic Capital is a healthcare credit firm that brings together decades of experience across healthcare, finance, and entrepreneurship. Our integration into a global healthcare ecosystem empowers us to provide lending solutions to fuel the growth of established healthcare companies around the world.

Healthcare Credit. For Science, By Science.

For more information, please visit www.symbcap.com.

Information repurposed from THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT® published by ORTHOWORLD® Inc.

Media Contact:
THINK Surgical Inc.
Jonathan Gibson
jgibson@thinksurgical.com

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SOURCE THINK Surgical, Inc.

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Dynabook Unveils Portégé® Z40L-P, a Premium Copilot+ PC with Slim Mobile Workstation Capabilities

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Featuring Intel® Core™ Ultra X9 and X7 Processor with Intel® Arc™ Pro Graphics Options, Enterprise-Grade Security, the 14-inch Portégé Z40L-P Delivers Advanced AI Performance and Professional Graphics Capability in a Highly Mobile Design

IRVINE, Calif., July 14, 2026 /PRNewswire/ — Dynabook Americas, Inc., a Sharp Company, today announced the Portégé® Z40L-P, a premium Copilot+ PC, the second generation of Dynabook’s advanced Portégé Z40L platform. Built for the demands of today’s AI-enabled workplace, the 14-inch Portégé Z40L-P combines next-generation Intel® Core™ Ultra Series 3 processor options, enhanced on-device AI capabilities, enterprise-grade security, Intel® Wi-Fi 7 and user replaceable 56Wh Li-Polymer battery. Pricing for the Portégé® Z40L-P starts at $2,170 MSRP.

Expanding the platform beyond premium business productivity, select Portégé Z40L-P configurations feature Intel® Core™ Ultra X9 and X7 processors with Intel® Arc™ Pro B390 graphics. With up to 12 Xe graphics cores, these models deliver discrete-class performance for technical and engineering workflows in a slim mobile workstation built for AI. Purpose-built to accelerate technical drafting, engineering design and computer-aided design applications, the Portégé Z40L-P provides smooth visuals, responsive performance and professional-grade capability in a thin-and-light form factor.

“As organizations look to equip their teams for the next generation of intelligent work, they need mobile computing solutions that deliver more than everyday productivity,” said Masa Okumura, Director of Product Marketing, Dynabook Americas, Inc. “The Portégé Z40L-P reflects Dynabook’s commitment to developing powerful, highly mobile business laptops that bring advanced AI capabilities, professional graphics performance and mobile workstation-class functionality to users who need to create, analyze, design and collaborate from anywhere.”

Slim Mobile Workstation Built for AI
The Portégé Z40L-P is engineered for executives, knowledge workers, creators, technical users and power users who need a highly portable system capable of handling more demanding workloads. Powered by Intel® Core™ Ultra X9 and X7 processor with Intel® Arc™ Pro B390 graphics, select configurations deliver enhanced AI performance, advanced graphics capabilities and workstation-class compute performance for data-intensive applications, business analytics, content creation, software development, technical drafting and complex multitasking.

For broader business deployments, the Portégé Z40L-P also offers Intel® Core™ Ultra 7 and Intel® Core™ Ultra 5 processor options, giving organizations the flexibility to support diverse users on a common premium platform. With up to 64GB of high-speed LPDDR5x memory and up to 2TB PCIe NVMe SSD storage, the Z40L-P delivers the responsiveness required for modern business, creative and technical workflows.

Empowered with Copilot+
As a Microsoft Copilot+ PC, the Portégé Z40L-P supports a new generation of AI-enhanced productivity experiences designed to streamline workflows, improve collaboration and enhance user convenience. Live Captions automatically transcribes audio into text in real time, helping users follow conversations, presentations and media more easily. Windows Studio Effects enhances video calls with background blur, automatic lighting adjustments and eye contact correction, helping users maintain a professional on-screen presence in any environment.

Dynabook’s Gesture Control adds another layer of convenience by enabling touch-free system control. Users can navigate presentations, control media playback and perform key functions with simple Hand Motions, making the Z40L-P ideal for meetings, presentations, classrooms and collaborative work environments.

Smarter Power Management and Serviceability
The Portégé Z40L-P is designed to support mobile professionals through demanding workdays. AI-driven power management dynamically adjusts power consumption based on workload demands, helping extend battery life during collaboration, multitasking and video conferencing. The system’s 56Wh Li-Polymer battery is user accessible and replaceable, helping extend device longevity, reduce downtime and lower long-term IT support costs.

AI-Enhanced Privacy and Security
As a Microsoft Secured-core PC, the Portégé Z40L-P delivers layered, enterprise-grade protection for business, education, healthcare, government and public sector environments. Security features include Microsoft Pluton, dTPM 2.0, fingerprint authentication, Windows Hello facial recognition, a security lock slot and Human Presence Detection.

Human Presence Detection features help protect information without interrupting productivity. Lock-On Leave automatically secures the system when the user steps away, Wake-On Approach helps users resume work quickly upon return, and Adaptive Dimming helps preserve privacy and power efficiency. Peek Alert helps notify users when prying eyes may be detected, giving professionals added confidence when working in shared spaces or on the move.

Built for Business Mobility
Designed for professionals who require durability without sacrificing portability, the Portégé Z40L-P features a Dark Tech Blue Metallic magnesium alloy chassis engineered to pass MIL-STD-810H testing methodologies. Its 14-inch WUXGA 16:10 display provides a productive workspace for documents, dashboards, creative tools and collaboration, with optional touch functionality available.

Despite its slim and lightweight design, the Portégé Z40L-P provides a full range of ports and connectivity options to reduce adapter dependency. The system includes Intel® Wi-Fi 7, Bluetooth, Intel® Ethernet Connection i219, HDMI® 2.1, two USB-C ports supporting Thunderbolt™ 4, two USB 3.2 Gen 1 Type-A ports, RJ-45 Ethernet LAN, a headset jack and a microSD card slot. A 5MP webcam with IR camera, privacy shutter, dual-microphone array and stereo speakers with Dolby Atmos® support high-quality collaboration from virtually anywhere.

Industry-Leading Service and Support
Dynabook laptops boast one of the lowest failure rates in the industry, which is why the company offers one of the best standard warranties in the business. For even greater peace of mind, Dynabook’s industry-leading +Care Service® Warranty with On-site can be added for worry-free reliability with up to four years of coverage. With comprehensive warranty coverage and access to a vast service and support network, Dynabook helps businesses minimize downtime, reduce IT costs, and ensure uninterrupted productivity.

Availability
The Dynabook Portégé Z40L-P will be available through authorized Dynabook partners and can be custom ordered to meet the needs of business, education, healthcare, government and public sector customers. To learn more about Dynabook, visit us.dynabook.com.

About Dynabook Americas, Inc.
Empowering a Dynamic World, Dynabook Americas, Inc. is a trusted technology partner committed to delivering innovative laptops that redefine the standards of performance, reliability, security, and value. With a history dating back to the release of the first modern laptop PC in 1985, Dynabook stands for unmatched quality, peace of mind, and a legacy of excellence. Our sleek and lightweight designs, military-spec durability, TAA compliance, range of customizable options and industry-leading warranty ensure our diverse portfolio of laptops meet and exceed the unique needs of every customer.

Dynabook Americas is an independent operating company wholly owned by Dynabook, Inc., of Japan, a wholly owned company of Sharp Corporation. For more information on Dynabook Americas, visit us.dynabook.com.

© 2026 Dynabook Americas, Inc. Dynabook is a trademark of Dynabook Inc. All other product, service and company names are trademarks, registered trademarks, or service marks of their respective owners. Information including without limitation product prices, specifications, availability, content of services, and contact information is subject to change without notice. All rights reserved.

Media Contact:
Eric Paulsen
Dynabook Americas, Inc.
eric.paulsen@dynabook.com

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SOURCE Dynabook Americas, Inc.

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