What does financing — segment profit mean?

This represents the pre-tax operating income generated specifically by the financing division. It is a key indicator of the segment's ability to manage its portfolio of client financing receivables and generate returns after accounting for direct operating costs. It serves as a primary measure of the segment's contribution to the overall corporate bottom line.

International Business Machines (IBM) Financing — Segment profit

Screener

Other segment segments

Software

$2.1B+13.6%

Consulting

$558M0.0%

Infrastructure

$524M+111%

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$22.42M-3.9%

HLIFinancial and Valuation Advisory — Segment profit

$23.4M+5.6%

SJMSegment profit

$569.2M+14.4%

COHRNetworking — Segment profit

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COHRIndustrial — Segment profit

$100.64M-12.3%

Other financials

Income statement

See full

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

See full

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

See full

Market cap$222.27B-5.4%

Enterprise value$288.76B+0.3%

Profitability

See full

Gross margin58.4%+1.3pp

Net margin15.6%+6.9pp

FCF margin18.7%-1.3pp

Returns & leverage

See full

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 us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest.

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) / For the three months ended March 31, 2026:	Software	Consulting	Infrastructure	Financing	Total Segments
Revenue	$7,052	$5,272	$3,326	$220	$15,870
Segment cost	1,216	3,822	1,435	124	6,598
Other expenses and (income) (1)	3,737	891	1,366	(23)	5,971
Segment profit	$2,099	$558	$524	$118	$3,300
Revenue year-to-year change	11.3%	4.0%	15.3%	14.8%	9.6%
Segment profit year-to-year change	13.7%	(0.1)%	111.7%	72.6%	21.3%
Segment profit margin	29.8%	10.6%	15.8%	53.8%	20.8%
For the three months ended March 31, 2025:

Item 1. Consolidated Financial Statements (Unaudited)

FAQ

What is International Business Machines's financing — segment profit?: International Business Machines (IBM) reported financing — segment profit of $118M in Q1 2026.
How has International Business Machines's financing — segment profit changed year-over-year?: International Business Machines's financing — segment profit increased by 71.0% year-over-year, from $69M to $118M.
What does financing — segment profit mean?: This represents the pre-tax operating income generated specifically by the financing division. It is a key indicator of the segment's ability to manage its portfolio of client financing receivables and generate returns after accounting for direct operating costs. It serves as a primary measure of the segment's contribution to the overall corporate bottom line.