International Business Machines Corporation · NYSE:IBM
International Business Machines — Q2 2026 Earnings Presentation
12 slides from International Business Machines's earnings presentation, Jul 22, 2026
Slide 1: IBM Releases Second-Quarter Results
IBM RELEASES SECOND-QUARTER RESULTS Company provides updated full-year expectations ARMONK, N.Y., July 22, 2026 . . . IBM (NYSE: IBM) today announced second-quarter 2026 earnings results. “We are confident in IBM's strategy and portfolio, and in our ability to capture growth opportunities ahead. We
Slide 2: Second-Quarter 2026 Income Statement Summary
SECOND-QUARTER 2026 INCOME STATEMENT SUMMARY Gross Pre-tax Diluted Gross Profit Pre-tax Income Net Earnings Revenue Profit Margin Income Margin Income Per Share GAAP from Continuing Operations $ 17.2B $ 9.9B 57.7 % $ 2.5B 14.4 % $ 2.2B $ 2.27 Year/Year 1 % (1) % (1.0) Pts (5) % (0.9) Pts (1) % (2) %
Slide 3: Forward-Looking and Cautionary Statements
to, the following: a downturn in economic environment and client spending budgets; a failure of the company’s innovation initiatives; damage to the company’s reputation; risks from investing in growth opportunities; failure of the company’s intellectual property portfolio to prevent competitive offe
Slide 4: Comparative Financial Results
INTERNATIONAL BUSINESS MACHINES CORPORATION COMPARATIVE FINANCIAL RESULTS (Unaudited; $ in millions except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 REVENUE BY SEGMENT Software $ 7,761 $ 7,387 $ 14,813 $ 13,722 Consulting 5,327 5,314 10,599 10,382 I
Slide 5: Condensed Consolidated Balance Sheet
INTERNATIONAL BUSINESS MACHINES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) At June 30, At December 31, ($ in millions) 2026 2025 ASSETS: Current assets: Cash and cash equivalents $ 7,172 $ 13,587 Restricted cash 45 54 Marketable securities 960 830 Notes and accounts receivable - tr
Slide 6: Statement of Cash Flows
INTERNATIONAL BUSINESS MACHINES CORPORATION STATEMENT OF CASH FLOWS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, ($ in millions) 2026 2025 (1) 2026 2025 (1) Cash flows from operating activities: Net income $ 2,165 $ 2,194 $ 3,381 $ 3,249 Adjustments to reconcile net income to ca
Slide 7: GAAP Net Income to Adjusted EBITDA Reconciliation
INTERNATIONAL BUSINESS MACHINES CORPORATION GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION (Unaudited) Three Months Ended Six Months Ended June 30, June 30, ($ in billions) 2026 2025 Yr/Yr 2026 2025 Yr/Yr Net income as reported (GAAP) $ 2.2 $ 2.2 $ 0.0 $ 3.4 $ 3.2 $ 0.1 Less: income from disconti
Slide 8: Segment Data
INTERNATIONAL BUSINESS MACHINES CORPORATION SEGMENT DATA (Unaudited) Three Months Ended June 30, 2026 ($ in millions) Software Consulting Infrastructure Financing Revenue $ 7,761 $ 5,327 $ 3,835 $ 186 Segment profit $ 2,502 $ 647 $ 835 $ 108 Segment profit margin 32.2 % 12.1 % 21.8 % 58.0 % Change Y
Slide 9: U.S. GAAP to Operating Results Reconciliation
INTERNATIONAL BUSINESS MACHINES CORPORATION U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION (Unaudited; $ in millions except per share amounts) Three Months Ended June 30, 2026 Continuing Operations Acquisition- Retirement- Tax Operating Related Related Reform (Non- GAAP Adjustments (1) Adj
Slide 10: U.S. GAAP to Operating Results Reconciliation
INTERNATIONAL BUSINESS MACHINES CORPORATION U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION (Unaudited; $ in millions except per share amounts) Six Months Ended June 30, 2026 Continuing Operations Acquisition- Retirement- Tax Operating Related Related Reform (Non- GAAP Adjustments (1) Adjus
Slide 11: GAAP Operating Cash Flow to Free Cash Flow Reconciliation
INTERNATIONAL BUSINESS MACHINES CORPORATION GAAP OPERATING CASH FLOW TO FREE CASH FLOW RECONCILIATION (Unaudited) Three Months Ended Six Months Ended June 30, June 30, ($ in millions) 2026 2025 2026 2025 Net cash provided by operating activities per GAAP $ 2,597 $ 1,701 $ 7,766 $ 6,071 Less: change
Slide 12: GAAP Operating Cash Flow to Adjusted EBITDA Reconciliation
INTERNATIONAL BUSINESS MACHINES CORPORATION GAAP OPERATING CASH FLOW TO ADJUSTED EBITDA RECONCILIATION (Unaudited) Three Months Ended Six Months Ended June 30, June 30, ($ in billions) 2026 2025 2026 2025 Net cash provided by operating activities $ 2.6 $ 1.7 $ 7.8 $ 6.1 Add: Net interest expense 0.4
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