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International Business Machines Income Statement

Revenue, expenses, and profitability over time

International Business Machines generated $68.9B in trailing twelve-month revenue, up 0.1% year-over-year. Net income was $10.8B with a 15.61% net margin. Diluted EPS is $11.33, which grew 0.9% year-over-year. Based on the Q1 2026 filing.

Total Revenue (TTM)$68.9BGross Profit (TTM)$40.2BNet Income (TTM)$10.8BEps Diluted (TTM)$11.33
Latest FilingQ1 2026
Report Date2026-04-23
Market Cap$258.33B
P/E Ratio24.02
ROE35.93%

Net Income

MetricQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Income from discontinued operations—$0.00$0.00$0.00$0.02$0.00
Net Income Available to Common Stockholders (Diluted)$2.9B$1.1B$2.2B$1.7B$5.6B$1.2B
Net income$2.9B$1.1B$2.2B$1.7B$5.6B$1.2B

Earnings Per Share

MetricQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Basic earnings per share$3.15$1.14$2.36$1.87$6.00$1.30
Diluted earnings per share$3.11$1.12$2.31$1.84$5.90$1.28
Continuing operations (in dollars per share)$3.17$1.14$2.36$1.87$5.98$1.30
Continuing operations (in dollars per share)$3.12$1.12$2.31$1.84$5.87$1.28
Discontinued operations (in dollars per share)—$0.00$0.00$0.00$0.02$0.00
Weighted-average shares, basic921.8M928M930.8M933.9M932.3M938.5M
Weighted-average shares, diluted937.2M945.4M948M948.9M948.7M952.1M

Operating Income

MetricQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Gross profit$10.4B$8B$10B$9.4B$11.9B$8.9B
Intellectual Property and Custom Development Income$300M$253M$215M$219M$277M$172M
Sales-Type Lease Selling Profit$266M$41M$725M$214M$718M$122M

Operating Expenses

MetricQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Amortization of Capitalized Software and Acquired Intangibles$589M$641M$687M$699M$710M$719M
Defined Contribution Plan Cost$110M$115.3M$115.3M$115.3M$115.3M—
Finance Lease Cost$57.3M$82.8M$82.8M$82.8M$82.8M—
Operating Lease Cost$254.5M$256.8M$256.8M$256.8M$256.8M—
Operating Lease ROU Asset Amortization$200M$200M$200M$200M$300M$200M
Share-Based Compensation Expense, Net of Tax$229M$207M$285M$215M$268M$299M
Share-Based Compensation (Operating)$345M$401M$424M$430M$430M$503M
Taxes Excluding Income Taxes$725M$750M$750M$750M$750M—
Total Lease Cost$384.3M$409.8M$409.8M$409.8M$409.8M—
Occupancy and equipment$254.5M$256.8M$256.8M$256.8M$256.8M—
Other operating expenses—-$5.5M-$5.5M-$5.5M-$5.5M—
Research and development$2B$2B$2.1B$2.1B$2.2B$2.2B
Restructuring charges$0$316M$17M$40M$281M$336M
Selling and marketing$293.3M$282.3M$282.3M$282.3M$282.3M—
Selling, general and administrative$4.9B$4.9B$5B$4.7B$5.5B$5.1B

Other

MetricQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Cash Dividend per Common Share$1.7$1.7$1.7$1.7$1.7$1.7
OCI Amortization of Prior Service Costs-$2M-$2M-$2M-$2M-$2M$9M
OCI Available-for-Sale Securities Adjustment, Before Tax$1M$8M-$5M-$2M-$2M$0
OCI Cash Flow Hedge Reclassification, Before Tax-$291M$323M$419M-$94M—-$342M
OCI Defined Benefit Plan, Net Before Tax-$550M-$151M-$160M-$158M-$79M-$209M
OCI Defined Benefit Plan Settlement Gain (Loss), Before Tax$428M$2M$5M$2M$1M$2M
OCI Foreign Currency Translation, Before Tax$574M-$343M-$613M-$100M$0$136M
OCI Pension Reclassification Adjustment Before Tax-$210M-$151M-$157M-$158M-$157M-$198M
OCI Pension Unamortized Gain (Loss) Arising Before Tax—$0$0$0$392M$1M
OCI Pension Valuation Finalization Before Tax$428M$2M$5M$2M$1M$2M
Other Comprehensive Income (Loss), Before Tax$1.7B-$566M-$959M$170M—$512M
OCI Unrealized Investment Gains (Losses), Before Tax$1M$8M-$5M-$2M-$67M-$175M
Acquisition Related Charges$16M$63M$26M$29M$36M$76M
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation$162.8M$254.5M$254.5M$254.5M$254.5M—
Pre-tax stock-based compensation cost$345M$401M$441M$444M$430M$506M
Share-Based Payment Arrangement, Expense, after Tax$229M$207M$285M$215M$268M$299M
Foreign currency and other—$6M$5M$2M—$0
Additions / (Releases)-$6M-$10M—$10M—$6M
Accounts Receivable, Allowance for Credit Loss, Writeoff$7M$8M$6M$5M$12M$3M
Amortization Acquired Intangible Assets$482M$495M$549M$561M$561M$570M
Amortization of capitalized software and acquired intangible assets$589M$641M$687M$699M$710M$719M
Intangible asset amortization expense$589M$641M$687M$699M$710M$719M
Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent, Period Increase (Decrease), Including Exchange Rate Effect and Discontinued Operation—-$3B———-$2.8B
Pre-tax stock-based compensation cost increase (decrease)——$125M$114M—$105M
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge$195M-$86M-$33M-$27M$0$29M
Cash dividend per common share (in dollars per share)—$1.67———$1.68
Comprehensive Income (Loss), Net of Tax, Attributable to Parent$4.1B$749M$1.7B$1.8B$5.9B$1.5B
Revenue recognized that was included in deferred income at the beginning of the period—————$4.9B
Total$322.8M$329.3M$329.3M$329.3M$329.3M—
Cost of Goods Sold, Sales-type Lease$70M$30M$152M$66M$281M$49M
Federal-$83.8M-$430.5M-$430.5M-$430.5M-$430.5M—
Foreign$575.3M$575.8M$575.8M$575.8M$575.8M—
Current State And Local Tax Expense Benefit$38M$33.8M$33.8M$33.8M$33.8M—
Debt and Equity Securities, Realized Gain (Loss)$6M-$29M$19M$3M$0$9M
Limit based on net tangible assets—$0.1———$0.1
Impairment for credit losses$0$0$0$0$0$0
Federal-$551M-$29.8M-$29.8M-$29.8M-$29.8M—
Deferred taxes-$582.5M-$239.3M-$239.3M-$239.3M-$239.3M—
State-$83.8M-$32.5M-$32.5M-$32.5M-$32.5M—
Defined Benefit Plan, Defined Contribution Plan and Direct Benefit Payments, Benefit Payments—$70M$54M$55M—$90M
Defined Contribution Plan Cost Recognized$110M$115.3M$115.3M$115.3M$115.3M—
Depreciation$524M$536M$578M$584M$586M$555M
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings$6M$0-$2M$4M$4M-$10M
Derivative, Gain (Loss) on Derivative, Net-$458M$156M$295M$0—-$206M
Dividends, Common Stock, Cash$1.5B$1.5B$1.6B$1.6B$1.6B$1.6B
Effect of exchange rate changes on cash, cash equivalents and restricted cash—$167M———-$177M
Income taxes at U.S. statutory rate of 21%$0.1$0.1$0.1$0.1$0.1—
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent—-$0-$0-$0-$0—
Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate—$0$0$0$0—
Effective Income Tax Rate Reconciliation, Cross-Border, Other, Amount—-$5.5M-$5.5M-$5.5M-$5.5M—
Other—$0$0$0$0—
Current GILTI, other—$106.8M$106.8M$106.8M$106.8M—
Current GILTI, other————4.0%—
Deferred GILTI, other————2.0%—
Deferred GILTI, other—$42M$42M$42M$42M—
Domestic incentives, portion related to one-time pension settlement charge-3.0%—————
Effective Income Tax Rate Reconciliation Domestic Incentives7.0%—————
Foreign operations-$0—————
Tax differential on foreign income, portion related to one-time pension settlement charge-4.0%—————
Other, portion related to one-time pension settlement charge-1.0%—————
Excess tax benefits associated with employee equity plans (in percent)————-2.0%—
State income taxes – net of federal income tax benefit-$0-$0-$0-$0-$0—
State and local, portion related to one-time pension settlement charge-2.0%—————
Changes in unrecognized tax benefits————-27.0%—
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Percent————3.0%—
Share-Based Payment Arrangement, Expense, Tax Benefit$116M$194M$156M$228M$162M$207M
Income tax benefit realized from option exercises$8.5M$14M$14M$14M$14M—
Other expense and (income)$7.1B$6.9B$7.4B$6.9B$7.8B$7.6B
Finance Lease Principal Payments$47.3M$70M$70M$70M$70M—
Amount of foreign currency translation increase (decrease)-$132M$63M$127M——-$24M
Intangible assets, increase (decrease)-$429M$1.7B———$3.2B
Acquired intangibles$203M$2.1B$244M$0$162M$3.8B
Gain (Loss), Foreign Currency Transaction, before Tax$584M-$443M-$773M$84M—$328M
Gain (Loss) on Derivative Instruments, Net, Pretax—$442M———-$423M
Goodwill Additions$527M$5B$589M$0$305M$7.2B
Foreign Currency Translation and Other Adjustments-$907M$335M$837M$0$31M-$217M
Goodwill impairment losses$0$0$0$0$0$0
Purchase Price Adjustments-$7M$7M$15M——-$17M
Goodwill, Written off Related to Sale of Business Unit—$0$0$0$0$0
Amount of revenue deferred and recognized over the shipping period$0$0$0$0$0—
Impairment of intangible assets$0$0$0$0$0—
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent$2.9B$1.1B$2.2B$1.7B$5.6B$1.2B
Income Loss From Continuing Operations Before Income Taxes Domestic-$851.3M-$59M-$59M-$59M-$59M—
Income Loss From Continuing Operations Before Income Taxes Foreign$2.3B$2.6B$2.6B$2.6B$2.6B—
Income from discontinued operations, net of tax—$1M$1M$0$21M$0
Income Tax Expense (Benefit), Continuing and Discontinuing Operations, Net-$53M-$65.5M-$65.5M-$65.5M-$65.5M—
Federal taxes—$54.5M$54.5M$54.5M$54.5M—
State taxes—$23M$23M$23M$23M—
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount—-$19.3M-$19.3M-$19.3M-$19.3M—
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount—$542.3M$542.3M$542.3M$542.3M—
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount—-$32.5M-$32.5M-$32.5M-$32.5M—
Changes in unrecognized tax benefits—-$688.5M-$688.5M-$688.5M-$688.5M—
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount—$66.3M$66.3M$66.3M$66.3M—
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount—$20.8M$20.8M$20.8M$20.8M—
Income Taxes Paid, Net$430.8M$487M$487M$487M$487M—
Accounts payable-$3.3M$156M$156M$156M$156M—
Increase (Decrease) in Inventories$41.5M-$17.5M-$17.5M-$17.5M-$17.5M—
Adjustment to Reconcile Net Income to Cash Provided by (Used in) Operating Activity, Increase (Decrease) in Operating Capital—-$1.8B———-$2.2B
Increase (Decrease) in Other Operating Assets and Liabilities, Net-$400.3M-$123.8M-$123.8M-$123.8M-$123.8M—
Increase (Decrease) in Retirement Related Assets and Liabilities-$66.3M$12.5M$12.5M$12.5M$12.5M—
Add - Incremental shares associated with contingently issuable shares (in shares)2.4M2.1M2.5M2.6M2.5M1.9M
Add - Incremental shares under stock-based compensation plans (in shares)13M15.2M14.7M12.5M13.9M11.7M
Intangible Assets Fully Amortized Retired$242M$221M$171M$149M$184M$119M
Intellectual Property and Custom Development Income$300M$253M$215M$219M$277M$172M
Interest capitalized$2M$2M$2M$1M—$1M
Interest Costs Incurred—$544M———$585M
Net interest excluding the Financing segment-$278M-$265M-$343M-$345M-$359M-$338M
Interest Income, Other$150M$191M$172M$150M$132M$152M
Interest Paid, Excluding Capitalized Interest, Operating Activity$494.5M$510.5M$510.5M$510.5M$510.5M—
Lease Cost$384.3M$409.8M$409.8M$409.8M$409.8M—
Lease Income$356M$124M$806M$309M$819M$221M
Changes in noncontrolling interests$4M-$14M$7M$6M$8M-$11M
Cash Provided by (Used in) Financing Activity, Including Discontinued Operation-$1.7B$5.4B-$2.9B-$3B-$3.4B$2.7B
Cash Provided by (Used in) Investing Activity, Including Discontinued Operation-$1.4B-$13B—-$438M—-$10.5B
Cash Provided by (Used in) Operating Activity, Including Discontinued Operation$4.3B$4.4B$1.7B$3.1B$4B$5.2B
Net Gain (Loss) on Divestitures, Asset Sales and Other$20M$22M$18M$6M—$11M
Net Income (Loss) Available to Common Stockholders, Basic—$1.1B———$1.2B
Net Income (Loss) Available to Common Stockholders, Diluted—$1.1B———$1.2B
Nonoperating Retirement Related Costs$466M$23M$25M$13M$4M$96M
Number of business segments to which assets are assigned when ownership is shared between several segments0.250.250.250.250.251.00
Lease income — operating leases$13M$11M$11M$11M$11M$13M
Operating Lease Payments$240.3M$252.8M$252.8M$252.8M$252.8M—
Operating lease right-of-use assets amortization expense$200M$200M$200M$200M$300M$200M
Net unrealized gains/(losses) on available-for-sale securities—$8M———$0
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax—$0———$0
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Tax, after Reclassification Adjustment, Attributable to Parent-$550M-$151M-$160M-$158M-$79M-$209M
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Parent—-$343M———$136M
Amortization of prior service costs/(credits)-$2M-$2M-$2M-$2M-$2M$9M
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent$1.7B-$566M-$959M$170M—$512M
Other Comprehensive Income (Loss), Cash Flow Hedge, Derivative Including Excluded Component, And Net Investment Hedges, Gain (Loss), Before Tax, Attributable To Parent$436.8M-$540.8M-$540.8M-$540.8M-$540.8M—
Other Comprehensive Income (Loss), Cash Flow Hedge, Derivative Excluded Component, And Net Investment Hedges, Gain (Loss), Before Tax, Attributable To Parent—-$867M-$1.7B$179M—$289M
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), And Derivative, Excluded Component, After Reclassification, Before Tax, Parent$616M-$382M-$501M$113M—$167M
Unrealized gains/(losses) arising during the period$325M-$58M-$82M$20M—-$175M
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), And Derivative, Excluded Component, Reclassification, Before Tax-$291M$323M$419M-$94M—-$342M
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax—$2M———$2M
Other comprehensive income/(loss)$1.1B-$306M-$466M$58M—$299M
Net gains/(losses) arising during the period—$0———$1M
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax-$210M-$151M-$157M-$158M-$157M-$198M
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent—-$259M———$213M
Other‒divested businesses$3M-$7M-$20M-$1M-$5M-$2M
Other (income) and expense$177M-$165M-$39M-$173M-$66M-$1M
Other income, net (Note 6)$67M$26M$45M$110M$40M$31M
Payments of Ordinary Dividends, Common Stock$1.5B$1.5B$1.6B$1.6B$1.6B$1.6B
Payment, Tax Withholding, Share-Based Payment Arrangement$112M$284M$153M$414M$167M$350M
Payments to Acquire and Develop Software$141M$151M$163M$162M$171M$159M
Payments to Acquire Businesses, Net of Cash Acquired$541M$7.1B$747M$58M$391M$10.5B
Payments to Acquire Investments$1.3B$6.5B$1.3B$1.2B$1.2B$1.6B
Payments to Acquire Property, Plant, and Equipment$303M$244M$210M$255M$382M$232M
Divestiture of businesses, net of cash transferred—-$1M———$1M
Proceeds from new debt—$8.4B$7M$6M$0$7.4B
Proceeds from issuance of shares$108M$216M$185M$134M$175M$178M
Financing — other-$21M-$32M-$22M-$55M-$30M-$42M
Short-term borrowings/(repayments) less than 90 days — net$21M-$29M———$0
Proceeds from disposition of marketable securities and other investments$853M$927M$4B$1.2B$3.5B$2B
Proceeds from disposition of property, plant and equipment/other$21M$74M$37M$7M$3M$8M
Cash received from option exercises$79.3M$58.3M$58.3M$58.3M$58.3M—
Purchases, Sales, Treasury Stock under Employee Plans, Net-$26M-$159M-$15M-$263M-$53M-$230M
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent-$270M$350M$449M-$66M—-$311M
Repayment of Long-Term Debt, Long-Term Lease Obligation, and Capital Security$124M$1.3B$1.3B$1.1B$1.8B$2.9B
Retirement Related Income (Expense)-$466M-$23M-$25M-$13M-$4M-$96M
Right Of Use Asset Obtained In Exchange For Finance Lease Liability$174.5M$111M$111M$111M$111M—
Right Of Use Asset Obtained In Exchange For Operating Lease Liability$247M$164.5M$164.5M$164.5M$164.5M—
Gains on sale and leaseback transactions, net$4.3M—————
Interest income on lease receivables$62M$61M$54M$65M$63M$67M
Sales Type and Direct Financing Leases Lease Income$330M$101M$779M$279M$780M$189M
Sales-type lease selling price$337M$70M$877M$280M$999M$170M
Sales-type Lease, Selling Profit (Loss)$266M$41M$725M$214M$718M$122M
Stock-based compensation$345M$401M$441M$443M$430M$506M
Expected volatility26.2%———27.5%—
Granted (in shares)3.2M———1.9M—
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures and Expirations in Period623.7K———598K—
Forfeited or expired (in shares)$143.00———$166.00—
Risk-free rate4.4%———4.6%—
Weighted-average dividend yield3.7%———2.6%—
Granted (in shares)$181.00———$262.00—
Exercised (in shares)$133.00———$137.00—
Share-Based Payment Arrangement, Expense, Excluding Nonoperating Acquisition-Related Charges$345M$401M$424M$430M$430M$503M
Standard Product Warranty Accrual, Decrease for Payments$20M$21M$19M$23M$21M$22M
Accrual adjustments to reflect actual experience$2M$14M$1M$4M$0$0
Current-period accruals$29M$16M$18M$21M$30M$19M
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period2.4M———1.7M—
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture$367M$533M$479M$427M$498M$618M
Supply chain finance program, payments$125.8M$113.8M$113.8M$113.8M$113.8M—
Invoices confirmed during the period$128M$117M$117M$117M$117M—
Gross proceeds from transfers of notes and accounts receivable trade$1.1B$950M$950M$950M$950M—
Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions$238.8M$710.8M$710.8M$710.8M$710.8M—
Unrecognized tax benefits, settlements$15.3M$23.8M$23.8M$23.8M$23.8M—
Interest expense and penalties, net (benefit)/charge recognized$70.5M-$33.8M-$33.8M-$33.8M-$33.8M—
Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions$166.8M$79M$79M$79M$79M—
Additions for tax positions of prior years$113M$100.5M$100.5M$100.5M$100.5M—
Increase (decrease) in amount of unrecognized tax benefits$25.8M-$555M-$555M-$555M-$555M—
Variable Lease Cost$80.3M$75M$75M$75M$75M—
Variable lease income$14M$12M$16M$19M$27M$20M

Cost of Revenue

MetricQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Cost of Sales-Type Leases$70M$30M$152M$66M$281M$49M
Total cost of revenue$7.1B$6.5B$7B$7B$7.8B$7B

Tax

MetricQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Current State and Local Tax Expense$38M$33.8M$33.8M$33.8M$33.8M—
Deferred Foreign Tax Expense$50.8M-$177M-$177M-$177M-$177M—
Federal Income Tax Expense (Benefit), Continuing Operations-$634.8M-$460.5M-$460.5M-$460.5M-$460.5M—
Foreign Income Tax Expense (Benefit), Continuing Operations$626M$398.8M$398.8M$398.8M$398.8M—
State and Local Income Tax Expense (Benefit), Continuing Operations-$45.8M$1.3M$1.3M$1.3M$1.3M—
Income tax expense—$103M$404M$686M-$1.4B$172M

Other Income & Expense

MetricQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Net Gain (Loss) on Derivative Instruments-$516M$442M$601M-$162M—-$423M
Foreign Currency Transaction Gain (Loss)$584M-$443M-$773M$84M—$328M
Interest Costs Incurred$508M$544M$597M$589M$575M$585M
Net Interest Excluding Financing Segment-$278M-$265M-$343M-$345M-$359M-$338M
Retirement Related Income (Expense)$721M$266M$281M$265M$256M-$96M
Sublease Income$9.8M$6.3M$6.3M$6.3M$6.3M—
Interest expense$424M$455M$510M$492M$478M$473M

Revenue

MetricQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Interest Income on Lease Receivables$62M$61M$54M$65M$63M$67M
Sales-Type and Direct Financing Lease Income$62M$61M$54M$65M$63M$67M
Sales-Type Lease Revenue$337M$70M$877M$280M$999M$170M
Variable Lease Income$14M$12M$16M$19M$27M$20M
Total revenue$17.6B$14.5B$17B$16.3B$19.7B$15.9B

Income Before Tax

MetricQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Income before income taxes$3.3B$1.2B$2.6B$2.4B$4.1B$1.4B