International Business Machines Corp

Company facts

Industry

Computer & office Equipment

Headquarters

Armonk, New York

Most recent report

10-Q, filed Oct 22, 2026

Incorporated

New York

Filings on record

1,000+ filings

On EDGAR

CIK 51143

Fiscal year ends

December

Filer status

Large accelerated filer

What to read: Sep 2026 10-Q

SECSift found 2 of 9 sections worth reading, with 3 positive, 11 notable, and 1 negative flags.

• Financial Statements (Item 1)

  Financial statements and notes with major acquisition, debt issuance, and CHIPS grant details.
  Notable

  • Remaining performance obligations $69B; 70% expected in next two years.
  • Confluent acquisition for $11.6B in Q1 2026, adding $7.2B goodwill and $3.8B intangibles.
  • CHIPS grant of up to $1.0B for quantum wafer R&D; IBM contributed $1.0B cash plus IP.
  • Long-term debt increased to $56.8B from $54.8B; fair value below carrying ($51.4B vs $56.8B).
  • Issued $6.5B in new debt in 2026: $3.25B USD notes, $4.2B EUR notes, $2B CAD notes.

• Management's Discussion (Item 2)

  Full MD&A with segment results, cash flow, debt, tax dispute, and quantum investment plan.
  Positive

  • Q3 2026 free cash flow $3.0B, up $0.7B YoY; YTD free cash flow $7.8B, up $0.6B.
  • Software revenue grew 8.2% in Q3 2026, led by Data (+19.1%) and Hybrid Cloud (+10.6%).
  • Software ARR reached $24.9B, up ~$2B YoY, reflecting Confluent acquisition and organic growth.
  Notable

  • Consulting revenue flat in Q3 2026; signings fell 3.7% YoY, though backlog was $30.2B.
  • Consulting gross margin fell 1.9 pts to 27.4% in Q3 2026; segment profit down 4.8%.
  • Infrastructure revenue up 4.2% in Q3 2026; IBM Z fell 19.6% but Distributed Infrastructure rose 31.3%.
  • R&D expense rose 14.2% in Q3 2026 and 12.0% YTD, driven by AI, hybrid cloud, and quantum investments.
  • Total debt rose $2.6B to $63.8B at Sep 2026; non-Financing debt up $5.0B, partly from $9.4B in issuances.
  • IBM plans to invest over $10B in quantum over five years; received $1B CHIPS award for quantum wafer manufacturing.
  Negative

  • IRS proposed adjustments for cross-border transactions on 2013-2014, 2015-2016, and 2017-2018 returns; IBM contests.

What changed: Sep 2026 vs. Jun 2026

About 7% of IBM's Sep 2026 10-Q is new information. 36 paragraphs were added, 231 changed, and 50 removed. Below are the most important lines SECSift identified.

• Item 2 135
• Item 1 80