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International Business Machines IBM Software — Goodwill Additions

Other segment segments

Consulting
$89M-60.8%
Infrastructure
$0
Other
$0

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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$222.27B-5.4%
Enterprise value$288.76B+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 us-gaap:GoodwillAcquiredDuringPeriod.

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)BalanceGoodwill AdditionsForeign Currency Translationand Other Adjustments (1)Balance
Segment1/1/2026Divestitures3/31/2026
Software$52,987$7,136$(175)$59,950
Consulting10,34189(36)10,376
Infrastructure4,389(6)4,383
Other
Total$67,717$7,225$(217)$74,709

Item 1. Consolidated Financial Statements (Unaudited)

FAQ

What is International Business Machines's software — goodwill additions?
International Business Machines (IBM) reported software — goodwill additions of $7.14B in Q1 2026.
How has International Business Machines's software — goodwill additions changed year-over-year?
International Business Machines's software — goodwill additions increased by 470.4% year-over-year, from $1.25B to $7.14B.
What is the long-term trend for International Business Machines's software — goodwill additions?
Over 3 years (2021 to 2025), International Business Machines's software — goodwill additions has grown at a 39.7% compound annual growth rate (CAGR), from $1.84B to $5B.
What does software — goodwill additions mean?
The amount of new goodwill recognized on the balance sheet resulting from acquisitions completed within the software segment during the period. This tracks the capital deployed to acquire new software businesses and the premium paid above their tangible net asset value.

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