Discontinued — last reported Q4 '25
Allowance for Credit Losses on Financing Receivables
International Business Machines Allowance for Credit Losses on Financing Receivables increased by 8.5% to $141M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 10.2%, from $128M to $141M. Over 3 years (FY 2022 to FY 2025), Allowance for Credit Losses on Financing Receivables shows a downward trend with a -6.6% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase suggests higher perceived credit risk in the company's financing portfolio, while a decrease suggests improved credit quality.
Detailed definition
This is the valuation allowance established against financing receivables, such as loans or leases provided to customers...
Peer comparison
Common for companies with large captive finance divisions; comparable to loan loss reserves at financial institutions.
financing_receivable_allowance_for_credit_lossesHistorical Data
| Q4 '22 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $173M | $171M | $159M | $156M | $145M | $137M | $131M | $128M | $149M | $141M | $130M | $141M |
| QoQ Change | — | -1.2% | -7.0% | -1.9% | -7.1% | -5.5% | -4.4% | -2.3% | +16.4% | -5.4% | -7.8% | +8.5% |
| YoY Change | — | — | — | -9.8% | — | -19.9% | -17.6% | -17.9% | +2.8% | +2.9% | -0.8% | +10.2% |
Geographic Breakdown
| Segment | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q4 '25 | Q1 '26 |
|---|---|---|---|---|---|---|---|---|
| Americas | $92M | $92M | $82M | $78M | $75M | $69M | $69M | $66M |
| Europe/Middle East/Africa | $44M | $48M | $46M | $43M | $41M | $45M | $60M | $51M |
| Asia Pacific | $18M | $11M | $12M | $10M | $10M | $9M | $7M | $7M |
| Total | $159M | $156M | $145M | $137M | $131M | $128M | $141M | — |
Allowance for Credit Losses on Financing Receivables at Other Companies
Frequently Asked Questions
- What is International Business Machines's allowance for credit losses on financing receivables?
- International Business Machines (IBM) reported allowance for credit losses on financing receivables of $141M in Q4 2025.
- How has International Business Machines's allowance for credit losses on financing receivables changed year-over-year?
- International Business Machines's allowance for credit losses on financing receivables increased by 10.2% year-over-year, from $128M to $141M.
- What is the long-term trend for International Business Machines's allowance for credit losses on financing receivables?
- Over 3 years (2022 to 2025), International Business Machines's allowance for credit losses on financing receivables has grown at a -6.6% compound annual growth rate (CAGR), from $173M to $141M.
- What does allowance for credit losses on financing receivables mean?
- The reserve set aside to cover potential losses from loans or financing provided to customers.