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International Business Machines IBM Intellectual Property and Custom Development Income

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Other financials

Income statement

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Revenue$15.9B+9.5%
Gross profit$9.9B-0.7%
Net income$1.2B+15.3%
EPS (diluted)$2.27-1.7%

Balance sheet

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Cash & equivalents$10.9B-2.7%
Total debt$77.4B+4.9%
Total equity$33.0B+22.7%
Total assets$156.23B+7.3%

Cash flow

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Operating cash flow$2.6B+52.7%
CapEx-$975.0M-564%
Free cash flow$1.6B+8.8%

Valuation

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Market cap$219.92B-6.4%
Enterprise value$286.41B+0.3%

Profitability

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Gross margin58.4%+1.3pp
Net margin15.6%+6.9pp
FCF margin18.7%-1.3pp

Returns & leverage

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Return on equity35.9%+14.1pp
Debt / equity2.3×-0.4×
Current ratio0.8×-0.2×

Where this comes from

Reported directly by International Business Machines in its filing.

Tagged under the XBRL concept ibm:IntellectualPropertyAndCustomDevelopmentIncome.

The source filing: International Business Machines’s 10-Q, filed April 23, 2026.

Filed
Apr 23, 2026, 6:22 AM EDT
Fiscal quarter
Q1 FY2026
Calendar quarter
Q1 2026
Accession
0000051143-26-000038
($ in millions, except per share amounts)Three Months Ended March 31, 2026Three Months Ended March 31, 2025
Expense and other (income):
Selling, general and administrative5,0894,886
Research and development2,1731,950
Intellectual property and custom development income(172)(253)
Other (income) and expense(1)(165)
Interest expense473455
Total expense and other (income)7,5626,873
Income from continuing operations before income taxes1,3871,158

Item 1. Consolidated Financial Statements (Unaudited)

FAQ

What is International Business Machines's intellectual property and custom development income?
International Business Machines (IBM) reported intellectual property and custom development income of $172M in Q1 2026.
How has International Business Machines's intellectual property and custom development income changed year-over-year?
International Business Machines's intellectual property and custom development income decreased by 32.0% year-over-year, from $253M to $172M.
What is the long-term trend for International Business Machines's intellectual property and custom development income?
Over 4 years (2021 to 2025), International Business Machines's intellectual property and custom development income has grown at a 12.0% compound annual growth rate (CAGR), from $613M to $964M.
What does intellectual property and custom development income mean?
Revenue generated from licensing proprietary technology, patents, and specialized custom development services. This represents high-margin income derived from the company's existing intellectual capital.

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