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IBM RELEASES THIRD-QUARTER RESULTS

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Exceeded expectations with accelerated revenue growth led by Software and Infrastructure; Raises outlook for full-year free cash flow

ARMONK, N.Y., Oct. 21, 2026 /PRNewswire/ — IBM (NYSE: IBM) today announced third-quarter 2026 earnings results.

“Disciplined execution throughout the quarter drove accelerated revenue growth and strong free cash flow. Our clients are now deploying Super Intelligence in ways that transform entire operating models, instead of simply addressing narrow or novel problems. IBM’s technology and expertise are helping organizations drive growth and serve customers with greater speed, precision and efficiency than ever before,” said Arvind Krishna, IBM chairman, president and chief executive officer. “For the full year, we continue to expect constant currency revenue growth in the range of four-to-five percent, and we now expect free cash flow to increase by more than $1 billion year-over-year.”

Third-Quarter Highlights

Revenue
– Revenue of $17.1 billion, up 5 percent, up 6 percent at constant currency
– Software revenue up 8 percent, up 9 percent at constant currency
– Consulting revenue flat, up 2 percent at constant currency
– Infrastructure revenue up 4 percent, up 5 percent at constant currency
Profit
– Gross Profit Margin: GAAP: 56.8 percent, down 50 basis points; Operating (Non-GAAP): 58.5 percent, down 20 basis points
– Pre-Tax Income Margin: GAAP: 14.6 percent, down 30 basis points; Operating (Non-GAAP): 19.3 percent, up 70 basis points
Cash Flow
– Year to date, net cash from operating activities of $11.8 billion; free cash flow of $7.8 billion

THIRD-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

$ 17.1 B

 
 

$  9.7  B

 
 

56.8

%

 

$  2.5  B

 
 

14.6

%

 

$  2.2  B

 
 

$   2.31

 

Year/Year

5

% (1)

 

4

%

 

(0.5)

Pts

 

3

%

 

(0.3)

Pts

 

26

%

 

26

%

Operating

(Non-GAAP)

 
 
 

$ 10.0 B

 
 

58.5

%

 

$  3.3  B

 
 

19.3

%

 

$  2.8  B

 
 

$   2.95

 

Year/Year

 
 
 

4

%

 

(0.2)

Pts

 

9

%

 

0.7

Pts

 

12

%

 

11

%

(1)  6% at constant currency.

“Demand across our portfolio combined with strong operational execution led to accelerated growth and solid operating pre-tax margin expansion in the quarter,” said James Kavanaugh, IBM senior vice president and chief financial officer. “Just as we are helping clients extract value from their operations with Super Intelligence, we are driving tangible returns through our productivity initiatives inside IBM. This approach fuels profit and free cash flow growth and enables us to continue to invest in our business while returning value to shareholders through our dividend.”

Segment Results for Third Quarter

Software — revenues of $7.8 billion, up 8 percent, up 9 percent at constant currency
– Hybrid Cloud (Red Hat) up 11 percent
– Automation down 3 percent
– Data up 19 percent, up 20 percent at constant currency
– Transaction Processing up 9 percent, up 10 percent at constant currency

Consulting — revenues of $5.3 billion, flat, up 2 percent at constant currency
– Strategy and Technology up 2 percent, up 4 percent at constant currency
– Intelligent Operations down 2 percent, flat at constant currency

Infrastructure — revenues of $3.7 billion, up 4 percent, up 5 percent at constant currency
– Hybrid Infrastructure up 8 percent, up 9 percent at constant currency
      — IBM Z down 20 percent, down 19 percent at constant currency
      — Distributed Infrastructure up 31 percent, up 32 percent at constant currency
– Infrastructure Support down 3 percent, down 2 percent at constant currency

Financing — revenues of $0.2 billion, down 4 percent, down 3 percent at constant currency

Cash Flow and Balance Sheet

In the third quarter, the company generated net cash from operating activities of $4.0 billion, up $0.9 billion year to year. IBM’s free cash flow was $3.0 billion, up $0.7 billion year to year. The company returned $1.6 billion to shareholders in dividends in the third quarter.

For the first nine months of the year, the company generated net cash from operating activities of $11.8 billion, up $2.6 billion year to year. IBM’s free cash flow was $7.8 billion, up $0.6 billion year to year.

IBM ended the third quarter with $11.1 billion of cash, restricted cash and marketable securities, down $3.4 billion from year-end 2025. The company invested $11.4 billion in acquisitions this year. Debt, including IBM Financing debt of $12.7 billion, totaled $63.8 billion, up $2.6 billion year to date.

Full-Year 2026 Expectations

Revenue: The company continues to expect 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 now expects full-year free cash flow to increase by more than $1 billion year-over-year

Dividend Declaration

The IBM board of directors approved a regular quarterly cash dividend of $1.69 per common share, to stockholders of record on November 10, 2026. With payment of the December 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-3q26. 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
September 30,

 
 

Nine Months Ended
September 30,

 
 

2026

 
 

2025

 
 

2026

 
 

2025

 

REVENUE BY SEGMENT

 
 
 
 
 
 
 
 
 
 
 

Software

$        7,804

 
 

$        7,209

 
 

$       22,617

 
 

$       20,932

 

Consulting

5,335

 
 

5,324

 
 

15,934

 
 

15,706

 

Infrastructure

3,707

 
 

3,559

 
 

10,868

 
 

10,586

 

Financing

192

 
 

200

 
 

598

 
 

557

 

Other

66

 
 

38

 
 

165

 
 

68

 

TOTAL REVENUE

17,103

 
 

16,331

 
 

50,182

 
 

47,849

 
 
 
 
 
 
 
 
 
 
 
 
 

GROSS PROFIT

9,714

 
 

9,360

 
 

28,571

 
 

27,369

 
 
 
 
 
 
 
 
 
 
 
 
 

GROSS PROFIT MARGIN

 
 
 
 
 
 
 
 
 
 
 

Software

82.5

%

 

83.1

%

 

82.6

%

 

83.5

%

Consulting

27.4

%

 

29.3

%

 

27.9

%

 

28.0

%

Infrastructure

56.7

%

 

57.2

%

 

57.4

%

 

57.7

%

Financing

40.7

%

 

45.6

%

 

42.2

%

 

45.7

%

 
 
 
 
 
 
 
 
 
 
 
 

TOTAL GROSS PROFIT MARGIN

56.8

%

 

57.3

%

 

56.9

%

 

57.2

%

 
 
 
 
 
 
 
 
 
 
 
 

EXPENSE AND OTHER INCOME

 
 
 
 
 
 
 
 
 
 
 

SG&A

4,620

 
 

4,748

 
 

14,691

 
 

14,661

 

R&D

2,378

 
 

2,082

 
 

6,863

 
 

6,129

 

Intellectual property and custom development income

(164)

 
 

(219)

 
 

(501)

 
 

(687)

 

Other (income) and expense

(109)

 
 

(173)

 
 

(296)

 
 

(376)

 

Interest expense

491

 
 

492

 
 

1,451

 
 

1,457

 

TOTAL EXPENSE AND OTHER INCOME

7,217

 
 

6,931

 
 

22,208

 
 

21,184

 
 
 
 
 
 
 
 
 
 
 
 
 

INCOME FROM CONTINUING OPERATIONS

BEFORE INCOME TAXES

2,497

 
 

2,430

 
 

6,363

 
 

6,185

 

Pre-tax income margin

14.6

%

 

14.9

%

 

12.7

%

 

12.9

%

Provision for/(benefit from) income taxes

298

 
 

686

 
 

782

 
 

1,193

 

Effective tax rate

11.9

%

 

28.2

%

 

12.3

%

 

19.3

%

 
 
 
 
 
 
 
 
 
 
 
 

INCOME FROM CONTINUING OPERATIONS

$        2,199

 
 

$        1,744

 
 

$         5,581

 
 

$         4,992

 
 
 
 
 
 
 
 
 
 
 
 
 

DISCONTINUED OPERATIONS

 
 
 
 
 
 
 
 
 
 
 

Income from discontinued operations, net of taxes

(10)

 
 

0

 
 

(10)

 
 

1

 
 
 
 
 
 
 
 
 
 
 
 
 

NET INCOME

$        2,190

 
 

$        1,744

 
 

$         5,571

 
 

$         4,993

 
 
 
 
 
 
 
 
 
 
 
 
 

EARNINGS PER SHARE OF COMMON STOCK

 
 
 
 
 
 
 
 
 
 
 

Assuming dilution

 
 
 
 
 
 
 
 
 
 
 

Continuing operations

$          2.31

 
 

$          1.84

 
 

$           5.86

 
 

$           5.27

 

Discontinued operations

$         (0.01)

 
 

$          0.00

 
 

$          (0.01)

 
 

$           0.00

 

TOTAL

$          2.30

 
 

$          1.84

 
 

$           5.85

 
 

$           5.27

 
 
 
 
 
 
 
 
 
 
 
 
 

Basic

 
 
 
 
 
 
 
 
 
 
 

Continuing operations

$          2.33

 
 

$          1.87

 
 

$           5.93

 
 

$           5.36

 

Discontinued operations

$         (0.01)

 
 

$          0.00

 
 

$          (0.01)

 
 

$           0.00

 

TOTAL

$          2.32

 
 

$          1.87

 
 

$           5.92

 
 

$           5.36

 
 
 
 
 
 
 
 
 
 
 
 
 

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES

OUTSTANDING (M’s)

 
 
 
 
 
 
 
 
 
 
 

Assuming dilution

953.5

 
 

948.9

 
 

953.0

 
 

947.4

 

Basic

944.4

 
 

933.9

 
 

941.4

 
 

930.9

 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

 

(Unaudited)

 

($ in millions)

 

At September 30,
2026

 

At December 31,
2025

ASSETS:

 
 
 
 

Current assets:

 
 
 
 

Cash and cash equivalents

 

$                 9,233

 

$              13,587

Restricted cash

 

48

 

54

Marketable securities

 

1,825

 

830

Notes and accounts receivable – trade, net

 

5,794

 

8,112

Short-term financing receivables

 
 
 
 

  Held for investment, net

 

5,638

 

7,344

  Held for sale

 

774

 

1,131

Other accounts receivable, net

 

1,673

 

1,052

Inventories

 

1,945

 

1,220

Deferred costs

 

1,177

 

1,084

Prepaid expenses and other current assets

 

3,083

 

2,530

Total current assets

 

31,192

 

36,944

 
 
 
 
 

Property, plant and equipment, net

 

6,043

 

5,899

Operating right-of-use assets, net

 

3,114

 

3,129

Long-term financing receivables, net

 

6,844

 

7,708

Prepaid pension assets

 

7,715

 

7,544

Deferred costs

 

808

 

825

Deferred taxes

 

8,827

 

8,610

Goodwill

 

74,916

 

67,717

Intangibles, net

 

13,603

 

11,391

Investments and sundry assets

 

1,950

 

2,112

Total assets

 

$             155,011

 

$            151,880

 
 
 
 
 

LIABILITIES:

 
 
 
 

Current Liabilities:

 
 
 
 

Taxes

 

$                 1,867

 

$                2,347

Short-term debt

 

7,013

 

6,424

Accounts payable

 

4,491

 

4,756

Compensation and benefits

 

3,668

 

4,114

Deferred income

 

15,164

 

16,101

Operating lease liabilities

 

749

 

800

Other liabilities

 

3,534

 

4,116

Total current liabilities

 

36,485

 

38,658

 
 
 
 
 

Long-term debt

 

56,804

 

54,836

Retirement-related obligations

 

8,452

 

9,018

Deferred income

 

4,318

 

4,271

Operating lease liabilities

 

2,574

 

2,547

Other liabilities

 

10,172

 

9,810

Total liabilities

 

118,805

 

119,139

 
 
 
 
 

EQUITY:

 
 
 
 

IBM stockholders’ equity:

 
 
 
 

Common stock

 

65,137

 

63,318

Retained earnings

 

156,576

 

155,648

Treasury stock – at cost

 

(171,191)

 

(170,605)

Accumulated other comprehensive income/(loss)

 

(14,985)

 

(15,713)

Total IBM stockholders’ equity

 

35,537

 

32,648

 
 
 
 
 

Noncontrolling interests

 

669

 

93

Total equity

 

36,206

 

32,740

 
 
 
 
 

Total liabilities and equity

 

$             155,011

 

$            151,880

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

STATEMENT OF CASH FLOWS

(Unaudited)

 
 
 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

($ in millions)

 

2026

 

2025 (1)

 

2026

 

2025 (1)

Cash flows from operating activities:

 
 
 
 
 
 
 
 

Net income

 

$     2,190

 

$     1,744

 

$     5,571

 

$     4,993

Adjustments to reconcile net income to cash provided by operating

activities:

 
 
 
 
 
 
 
 

Depreciation (2)

 

550

 

583

 

1,638

 

1,698

Amortization of capitalized software and acquired intangible assets

 

828

 

699

 

2,363

 

2,027

Stock-based compensation

 

535

 

444

 

1,539

 

1,285

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

 

(47)

 

(6)

 

(124)

 

(46)

Changes in operating assets and liabilities, net of

acquisitions/divestitures

 

(31)

 

(383)

 

804

 

(804)

Net cash provided by operating activities

 

4,025

 

3,081

 

11,791

 

9,153

 
 
 
 
 
 
 
 
 

Cash flows from investing activities:

 
 
 
 
 
 
 
 

Payments for property, plant and equipment

 

(332)

 

(255)

 

(793)

 

(709)

Proceeds from disposition of property, plant and equipment/other

 

29

 

7

 

60

 

118

Investment in software

 

(154)

 

(162)

 

(467)

 

(476)

Purchases of marketable securities and other investments

 

(1,898)

 

(1,169)

 

(4,769)

 

(8,910)

Proceeds from disposition of marketable securities and other

investments

 

640

 

1,199

 

3,763

 

6,162

Acquisition of businesses, net of cash acquired

 

(884)

 

(58)

 

(11,364)

 

(7,903)

Divestiture of businesses, net of cash transferred

 

28

 

–

 

30

 

(1)

Net cash provided by/(used in) investing activities

 

(2,570)

 

(437)

 

(13,539)

 

(11,719)

 
 
 
 
 
 
 
 
 

Cash flows from financing activities:

 
 
 
 
 
 
 
 

Proceeds from new debt

 

1,978

 

6

 

9,415

 

8,391

Payments to settle debt

 

(120)

 

(1,114)

 

(7,261)

 

(3,679)

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

 

2

 

0

 

3

 

(29)

Common stock repurchases for tax withholdings

 

(352)

 

(414)

 

(817)

 

(851)

Proceeds from issuance of shares

 

143

 

134

 

562

 

535

Noncontrolling interest transactions (3)

 

575

 

–

 

557

 

(15)

Financing – other (3)

 

(24)

 

(54)

 

(98)

 

(93)

Cash dividends paid

 

(1,596)

 

(1,569)

 

(4,762)

 

(4,681)

Net cash provided by/(used in) financing activities

 

607

 

(3,012)

 

(2,402)

 

(423)

 
 
 
 
 
 
 
 
 

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

cash

 

3

 

(59)

 

(209)

 

429

Net change in cash, cash equivalents and restricted cash

 

2,064

 

(426)

 

(4,359)

 

(2,561)

 
 
 
 
 
 
 
 
 

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

 

7,217

 

12,026

 

13,640

 

14,160

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

 

$     9,282

 

$   11,600

 

$     9,282

 

$   11,600

____________________

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

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

(3) Prior-year amounts have been reclassified to conform to the change in 2026 presentation.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

($ in billions)

 

2026

2025

Yr/Yr

 

2026

2025

Yr/Yr

Net income as reported (GAAP)

 

$   2.2

$   1.7

$  0.4

 

$   5.6

$   5.0

$  0.6

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

1.7

0.5

 

5.6

5.0

0.6

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

 

0.3

0.7

(0.4)

 

0.8

1.2

(0.4)

Pre-tax income from continuing operations (GAAP)

 

2.5

2.4

0.1

 

6.4

6.2

0.2

Non-operating adjustments (before tax)

 
 
 
 
 
 
 
 

Acquisition-related charges (1)

 

0.7

0.6

0.1

 

2.1

1.7

0.3

Non-operating retirement-related costs/(income)

 

0.1

0.0

0.1

 

0.3

0.1

0.2

 
 
 
 
 
 
 
 
 

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

 

3.3

3.0

0.3

 

8.7

8.0

0.7

 
 
 
 
 
 
 
 
 

Net interest expense

 

0.4

0.3

0.1

 

1.1

0.9

0.2

Depreciation/amortization of non-acquired intangible assets

 

0.7

0.7

0.0

 

2.1

2.1

0.0

Stock-based compensation

 

0.5

0.4

0.1

 

1.5

1.3

0.3

Workforce rebalancing charges

 

0.0

0.0

0.0

 

0.4

0.4

0.0

Corporate (gains) and charges (2)

 

0.0

0.0

0.0

 

(0.2)

0.0

(0.2)

 
 
 
 
 
 
 
 
 

Adjusted EBITDA

 

$   4.9

$   4.6

$  0.3

 

$ 13.7

$ 12.7

$  1.0

 
 
 
 
 
 
 
 
 

Revenue

 

$ 17.1

$ 16.3

5 %

 

$ 50.2

$ 47.8

5 %

GAAP net income margin

 

12.8 %

10.7 %

2.1pts

 

11.1 %

10.4 %

0.7pts

Adjusted EBITDA margin

 

28.7 %

28.0 %

0.6pts

 

27.2 %

26.5 %

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 September 30, 2026

 
 
 
 
 
 
 
 
 
 
 
 
 
 

($ in millions)

 

Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$         7,804

 
 

$         5,335

 
 

$            3,707

 
 

$           192

 

Segment profit

 

$         2,734

 
 

$            653

 
 

$               715

 
 

$           108

 

Segment profit margin

 

35.0

%

 

12.2

%

 

19.3

%

 

56.1

%

Change YTY revenue

 

8.2

%

 

0.2

%

 

4.2

%

 

(3.9)

%

Change YTY revenue – constant currency

 

8.7

%

 

1.8

%

 

4.9

%

 

(3.3)

%

 
 
 

Three Months Ended September 30, 2025

 
 
 
 
 
 
 
 
 
 
 
 
 
 

($ in millions)

 

 Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$         7,209

 
 

$         5,324

 
 

$            3,559

 
 

$           200

 

Segment profit

 

$         2,374

 
 

$            686

 
 

$               644

 
 

$           123

 

Segment profit margin

 

32.9

%

 

12.9

%

 

18.1

%

 

61.6

%

 
 
 

Nine Months Ended September 30, 2026

 
 
 
 
 
 
 
 
 
 
 
 
 
 

($ in millions)

 

Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$        22,617

 
 

$        15,934

 
 

$          10,868

 
 

$           598

 

Segment Profit

 

$          7,335

 
 

$          1,858

 
 

$            2,074

 
 

$           334

 

Segment Profit Margin

 

32.4

%

 

11.7

%

 

19.1

%

 

55.9

%

Change YTY Revenue

 

8.1

%

 

1.5

%

 

2.7

%

 

7.3

%

Change YTY Revenue – Constant Currency

 

7.0

%

 

1.2

%

 

1.9

%

 

5.7

%

 
 
 

Nine Months Ended September 30, 2025

 
 
 
 
 
 
 
 
 
 
 
 
 
 

($ in millions)

 

 Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$        20,932

 
 

$        15,706

 
 

$          10,586

 
 

$           557

 

Segment Profit

 

$          6,517

 
 

$          1,807

 
 

$            1,857

 
 

$           371

 

Segment Profit Margin

 

31.1

%

 

11.5

%

 

17.5

%

 

66.5

%

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

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

(Unaudited; $ in millions except per share amounts)

 
 

Three Months Ended September 30, 2026

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-

GAAP)

 

Gross profit

$  9,714

 
 

$                   289

 
 

$                     —

 
 

$         —

 
 

$       10,004

 

Gross profit margin

56.8

%

 

1.7

pts

 

—

pts

 

—

pts

 

58.5

%

SG&A

$  4,620

 
 

$                 (428)

 
 

$                     —

 
 

$         —

 
 

$         4,193

 

Other (income) & expense

(109)

 
 

0

 
 

(91)

 
 

—

 
 

(200)

 

Total expense & other (income)

7,217

 
 

(418)

 
 

(91)

 
 

—

 
 

6,708

 

Pre-tax income from continuing operations

2,497

 
 

707

 
 

91

 
 

—

 
 

3,295

 

Pre-tax margin from continuing operations

14.6

%

 

4.1

pts

 

0.5

pts

 

—

pts

 

19.3

%

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

$     298

 
 

$                  166

 
 

$                    20

 
 

—

 
 

$            483

 

Effective tax rate

11.9

%

 

2.5

pts

 

0.3

pts

 

—

pts

 

14.7

%

Income from continuing operations

$  2,199

 
 

$                  542

 
 

$                    71

 
 

$         —

 
 

$         2,812

 

Income margin from continuing operations

12.9

%

 

3.2

pts

 

0.4

pts

 

—

pts

 

16.4

%

Diluted earnings per share: continuing

operations

$    2.31

 
 

$                 0.57

 
 

$                 0.07

 
 

$         —

 
 

$           2.95

 
 
 

Three Months Ended September 30, 2025

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-

GAAP)

 

Gross profit

$  9,360

 
 

$                   231

 
 

$                     —

 
 

$         —

 
 

$         9,591

 

Gross profit margin

57.3

%

 

1.4

pts

 

—

pts

 

—

pts

 

58.7

%

SG&A

$  4,748

 
 

$                 (354)

 
 

$                     —

 
 

$         —

 
 

$         4,394

 

Other (income) & expense

(173)

 
 

(6)

 
 

(13)

 
 

—

 
 

(191)

 

Total expense & other (income)

6,931

 
 

(359)

 
 

(13)

 
 

—

 
 

6,559

 

Pre-tax income from continuing operations

2,430

 
 

590

 
 

13

 
 

—

 
 

3,033

 

Pre-tax margin from continuing operations

14.9

%

 

3.6

pts

 

0.1

pts

 

—

pts

 

18.6

%

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

$     686

 
 

$                   136

 
 

$                       3

 
 

$      (309)

 
 

$            516

 

Effective tax rate

28.2

%

 

(1.0)

pts

 

0.0

pts

 

(10.2)

pts

 

17.0

%

Income from continuing operations

$  1,744

 
 

$                   454

 
 

$                     10

 
 

$       309

 
 

$         2,517

 

Income margin from continuing operations

10.7

%

 

2.8

pts

 

0.1

pts

 

1.9

pts

 

15.4

%

Diluted earnings per share: continuing

operations

$    1.84

 
 

$                  0.48

 
 

$                  0.01

 
 

$      0.33

 
 

$           2.65

 

____________________

(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)

 
 

Nine Months Ended September 30, 2026

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-

GAAP)

 

Gross Profit

$ 28,571

 
 

$                   813

 
 

$                     —

 
 

$        —

 
 

$    29,384

 

Gross Profit Margin

56.9

%

 

1.6

pts

 

—

pts

 

—

pts

 

58.6

%

SG&A

$ 14,691

 
 

$              (1,257)

 
 

$                     —

 
 

$        —

 
 

$    13,435

 

Other (Income) & Expense

(296)

 
 

1

 
 

(283)

 
 

—

 
 

(578)

 

Total Expense & Other (Income)

22,208

 
 

(1,256)

 
 

(283)

 
 

—

 
 

20,669

 

Pre-tax Income from Continuing Operations

6,363

 
 

2,069

 
 

283

 
 

—

 
 

8,715

 

Pre-tax Margin from Continuing Operations

12.7

%

 

4.1

pts

 

0.6

pts

 

—

pts

 

17.4

%

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

$      782

 
 

$                  470

 
 

$                    43

 
 

$         (6)

 
 

$      1,290

 

Effective Tax Rate

12.3

%

 

2.5

pts

 

0.1

pts

 

(0.1)

pts

 

14.8

%

Income from Continuing Operations

$   5,581

 
 

$               1,598

 
 

$                  240

 
 

$          6

 
 

$      7,425

 

Income Margin from Continuing Operations

11.1

%

 

3.2

pts

 

0.5

pts

 

0.0

pts

 

14.8

%

Diluted Earnings Per Share: Continuing

Operations

$     5.86

 
 

$                 1.68

 
 

$                 0.25

 
 

$     0.01

 
 

$        7.79

 
 
 

Nine Months Ended September 30, 2025

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-

GAAP)

 

Gross Profit

$ 27,369

 
 

$                   657

 
 

$                     —

 
 

$        —

 
 

$    28,025

 

Gross Profit Margin

57.2

%

 

1.4

pts

 

—

pts

 

—

pts

 

58.6

%

SG&A

$ 14,661

 
 

$              (1,055)

 
 

$                     —

 
 

$        —

 
 

$    13,606

 

Other (Income) & Expense

(376)

 
 

(7)

 
 

(61)

 
 

—

 
 

(444)

 

Total Expense & Other (Income)

21,184

 
 

(1,066)

 
 

(61)

 
 

—

 
 

20,058

 

Pre-tax Income from Continuing Operations

6,185

 
 

1,723

 
 

61

 
 

—

 
 

7,968

 

Pre-tax Margin from Continuing Operations

12.9

%

 

3.6

pts

 

0.1

pts

 

—

pts

 

16.7

%

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

$   1,193

 
 

$                  396

 
 

$                      0

 
 

$     (307)

 
 

$      1,282

 

Effective Tax Rate

19.3

%

 

0.8

pts

 

(0.2)

pts

 

(3.9)

pts

 

16.1

%

Income from Continuing Operations

$   4,992

 
 

$               1,326

 
 

$                    61

 
 

$      307

 
 

$      6,686

 

Income Margin from Continuing Operations

10.4

%

 

2.8

pts

 

0.1

pts

 

0.6

pts

 

14.0

%

Diluted Earnings Per Share: Continuing

Operations

$     5.27

 
 

$                 1.40

 
 

$                 0.06

 
 

$     0.32

 
 

$        7.06

 

____________________

(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
September 30,

 

Nine Months Ended
September 30,

($ in millions)

 

2026

 

2025

 

2026

 

2025

Net cash provided by operating activities per GAAP

 

$     4,025

 

$     3,081

 

$   11,791

 

$     9,153

 
 
 
 
 
 
 
 
 

Less: change in IBM Financing receivables

 

541

 

298

 

2,805

 

905

 
 
 
 
 
 
 
 
 

Net cash from operating activities excl. IBM Financing receivables

 

3,484

 

2,783

 

8,986

 

8,248

 
 
 
 
 
 
 
 
 

Capital expenditures, net

 

(457)

 

(410)

 

(1,200)

 

(1,067)

 
 
 
 
 
 
 
 
 

Free cash flow

 

$     3,027

 

$     2,373

 

$     7,787

 

$     7,181

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

($ in billions)

 

2026

 

2025

 

2026

 

2025

Net cash provided by operating activities

 

$   4.0

 

$   3.1

 

$ 11.8

 

$   9.2

 
 
 
 
 
 
 
 
 

Add:

 
 
 
 
 
 
 
 

Net interest expense

 

0.4

 

0.3

 

1.1

 

0.9

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

 

0.3

 

0.7

 

0.8

 

1.2

 
 
 
 
 
 
 
 
 

Less change in:

 
 
 
 
 
 
 
 

Financing receivables

 

0.5

 

0.3

 

2.8

 

0.9

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

 

0.0

 

0.0

 

(0.1)

 

0.0

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

 

(0.7)

 

(0.8)

 

(2.6)

 

(2.2)

 
 
 
 
 
 
 
 
 

Adjusted EBITDA

 

$   4.9

 

$   4.6

 

$ 13.7

 

$ 12.7

 
 
 
 
 
 
 
 
 

Revenue

 

$ 17.1

 

$ 16.3

 

$ 50.2

 

$ 47.8

Net cash provided by operating activities margin

 

23.5 %

 

18.9 %

 

23.5 %

 

19.1 %

Adjusted EBITDA margin

 

28.7 %

 

28.0 %

 

27.2 %

 

26.5 %

____________________

(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-third-quarter-results-302915985.html

SOURCE IBM

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LianLian Global and PayPal Power Cross-Border Payouts for Social Commerce, Marketplace, and eCommerce Customers

Published

53 minutes ago

on

October 23, 2026

By

Social commerce, marketplaces and eCommerce players served by LianLian Global can now pay creators, influencers, developers, and independent contractors directly to their PayPal and Venmo wallets.

NEW YORK, Oct. 22, 2026 /PRNewswire/ — LianLian Global  today announced it has partnered with PayPal (NASDAQ: PYPL) to enable its social commerce, marketplace and e-commerce clients to send payouts directly to PayPal accounts globally and to Venmo accounts in the U.S.

The creator and gig economy runs on fast, low-friction payouts. Brands are expected to spend $32.6 billion on creators in 2026 and roughly 50 million people worldwide create content professionally or semi-professionally (Gigapay Global Creator Economy Report 2026). Many of these recipients already hold a PayPal or Venmo account: PayPal had over 400 million active accounts across approximately 200 markets at the end of Q2 2026, and Venmo reached 67 million monthly active accounts in Q4 2025.

Paypal Payouts is live in 96 global markets and 24 currencies. It allows merchants to send to any email address, mobile number, or Venmo user handle, with or without an existing PayPal or Venmo account.

To support enterprises expanding globally, LianLian Global provides digital payment services including pay-in, pay-out, acquiring, foreign exchange, virtual cards and payment aggregation. To date, its parent company Lianlian DigiTech has served more than 13.3 million clients. Its services reach more than 200 countries and regions, support transactions and settlement in more than 140 currencies, and connect with more than 180 global e-commerce platforms.

The partnership combines LianLian Global’s cross-border collection, FX and compliance infrastructure with PayPal’s global wallet network. Key offerings include:

Pay to PayPal: Payouts from LianLian Global clients to PayPal account holders in 96 markets, using only the recipient’s email or phone numberPay to Venmo: Domestic U.S. payouts to Venmo users, including creators, influencers and independent contractorsPayPal Payouts for Platforms: Mass disbursements for social commerce, marketplaces and affiliate platforms paying large numbers of sellers, creators and contractorsSpeed to settle: Save time and money by eliminating check runs and postage; no need for routing numbers and bank accounts.

Sandra Lam, Deputy CEO of US at LianLian Global: “Social commerce is creating a new economy, where creators, influencers and independent sellers drive discovery and sales alongside the platforms they sell on. Paying these participants fast, across borders and in small amount is what powers the network effect of social commerce. We see our work with Paypal as a key step in building the payout rails for the global gig economy.”

The collaboration expands LianLian Global’s payout coverage and supports its growth in the U.S. and global markets as cross-border platforms scale their creator and contractor programs.

View original content:https://www.prnewswire.com/news-releases/lianlian-global-and-paypal-power-cross-border-payouts-for-social-commerce-marketplace-and-ecommerce-customers-302917635.html

SOURCE LianLian Global

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Crab2B Debuts as Hong Kong’s First Dedicated B2B Platform for Mobile Electronics

Published

53 minutes ago

on

October 23, 2026

By

HONG KONG, Oct. 23, 2026 /PRNewswire/ — With the global population surpassing 8 billion, mobile electronics have become essential to modern life, with smartphones now used by billions of people. Across approximately 13,861 cities worldwide, electronics wholesalers play a vital role in the supply chain. Among the world’s three major wholesale hubs for digital electronics, Dubai serves the Middle East and Africa, Miami connects markets across Latin America, and Hong Kong draws strength from its unique position linking mainland China with global markets. According to Hong Kong Customs data, re-exports of used mobile phones from Hong Kong reached 51.5 million units in 2025, while the total value of electronics exports hit HK$3.9216 trillion. Yet despite its value running into the trillions of Hong Kong dollars, it has long lacked a dedicated online platform.

Crab2B was created to fill this gap as Hong Kong’s first B2B platform dedicated to mobile electronics. Inspired by Alibaba’s online B2B marketplace model, the platform focuses on consumer electronics, bringing together hundreds of thousands of buyers and sellers worldwide and enabling them to connect directly.

Crab2B covers a broad range of products, including smartphones, tablets, laptops and other smart devices. Listings span brand-new and used devices, as well as certified pre-owned (CPO) and as-is products. The platform also connects buyers and suppliers with service providers offering product inspection, international logistics and repair services. Users can search for products by brand and model, while all merchants undergo rigorous verification before joining the platform. With these safeguards in place, Crab2B is designed to meet the needs of businesses across the value chain, protect the interests of both buyers and sellers, and facilitate mutually beneficial transactions.

Building on Hong Kong’s established trading network, Crab2B made its debut at the HKICEC Global Mobile Exchange Pavilion during the Global Sources Hong Kong Shows, held at AsiaWorld-Expo from October 18 to 21, 2026, where it also launched the Crab2B app. Looking ahead, Crab2B will remain firmly rooted in Hong Kong while expanding its global reach, continuing to refine the platform to deliver a smarter, more comprehensive digital marketplace for mobile electronics. By helping international buyers identify suitable suppliers, simplifying cross-border sourcing and reducing transaction costs, Crab2B aims to support the continued growth of Hong Kong’s digital trade sector and contribute to the city’s long-term prosperity and stability.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/crab2b-debuts-as-hong-kongs-first-dedicated-b2b-platform-for-mobile-electronics-302917652.html

SOURCE CRAB 2B TECHNOLOGY INVESTMENT CO., LIMITED

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AiMOGA Launches Global Robot Innovation: Mobo Debuts from Wuhu, Empowering Homes and Businesses

Published

54 minutes ago

on

October 23, 2026

By

KUALA LUMPUR, Malaysia, Oct. 23, 2026 /PRNewswire/ — AiMOGA Robotics has officially launched Mobo, its first consumer-grade humanoid family companion robot, marking a new chapter in intelligent living for Malaysian households and enterprises. Unveiled globally from AiMOGA’s headquarters in Wuhu, China, during a joint international users summit with its sister brands, this groundbreaking product reflects the company’s commitment to worldwide innovation and technological excellence.

Standing 0.9 meters tall with 22 degrees of freedom, Mobo supports over 20 languages—including Bahasa Malaysia—and delivers rich, personalized interactions. Designed for family life, it offers children interactive learning, storytelling, and object recognition, while providing elders with conversational companionship and customizable reminders. Powered by MoAgent, AiMOGA’s embodied intelligence system, Mobo features a dual-brain architecture enabling real-time responses, multi-tasking capabilities, and adaptive learning through facial recognition and secure MogaCloud integration.

Peng Xia, AiMOGA Robotics Executive Vice President, said Mobo’s spatial perception, interaction, execution, decision-making, and cognition layers form a perception-decision-execution-feedback loop. Spatial memory enables object retrieval, while social navigation recognizes pedestrian paths and interaction zones. Multimodal technologies coordinate language, facial expressions, and movement for natural interaction.

Beyond home use, Mobo shows strong potential in professional settings—from customer service to logistics—supporting AiMOGA’s vision of integrating robotics into everyday workflows.

Since its debut in August 2026, Mobo has attracted over 10,000 prospective users. Thirty-five were selected as Global User Experience Officers, receiving one year of complimentary use to help shape future improvements.

At the event, Guibin Zhang, AiMOGA Robotics General Manager, outlined strategies in R&D, cost optimization, sales and leasing. The “Platform Institute + Scenario Institute” model drives validation for bipedal, quadruped, and wheeled robots. Plans include 300 global experience centers and “Jia Tian Xia”, a robot leasing brand launching in Wuhu. Leveraging Chery’s manufacturing and platform resources enhances cost efficiency and scalability.

Notably, AiMOGA’s impact in Malaysia is amplified through strategic collaboration with sister brands Chery, OMODA & JAECOO, iCAUR, and LEPAS. Their partnership extends far beyond vehicle showrooms and daily operations—jointly developing integrated smart ecosystems that span mobility, retail, smart offices, and connected living.

As part of a global rollout with over 3,000 units deployed across 60+ markets, this initiative aims to bring intelligent, accessible robotics to more Malaysian families and businesses—enhancing productivity, convenience, and quality of life.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/aimoga-launches-global-robot-innovation-mobo-debuts-from-wuhu-empowering-homes-and-businesses-302917658.html

SOURCE AiMOGA Robotics

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