International Business Machines Corporation is offering C$2,750,000,000 of senior unsecured Canadian dollar notes under its shelf registration, comprising C$1,750,000,000 4.100% Notes due 2030 and C$1,000,000,000 4.750% Notes due 2034. The 2030 and 2034 Notes are priced at 99.993% and 99.711% of principal, respectively, with underwriting discounts of 0.300% and 0.450%, yielding proceeds to IBM of 99.693% and 99.261% of principal, or about C$2,736 million in total, before estimated expenses, for general corporate purposes.
Interest starts August 17, 2026 and is payable semi-annually on February 15 and August 15, with maturities on August 15, 2030 and August 15, 2034. IBM may redeem the notes at its option, using a make-whole formula based on the Canada Yield Price before specified par call dates and at par thereafter, and may also redeem at par if certain U.S. tax law changes trigger additional withholding obligations. Payments are in Canadian dollars, creating foreign-exchange exposure for investors whose home currency is not CAD. The notes will settle through CDS, with access via Clearstream and Euroclear, and will not be listed on any securities exchange.
International Business Machines Corporation plans to issue two series of senior unsecured C$-denominated notes under its existing shelf registration. The notes will be issued in minimum denominations of C$2,000 and integral multiples of C$1,000, in book-entry form through CDS, with access for non-Canadian investors via Clearstream and Euroclear. Interest is payable semi-annually in arrears, and the notes rank equally with IBM’s other unsecured, unsubordinated debt.
IBM may redeem each series at its option, in whole or in part, using a make-whole formula based on the Canada Yield Price before the applicable Par Call Date and at par thereafter, and also at par if certain U.S. tax law changes require additional withholding. Payments will be made in Canadian dollars, with a fallback to U.S. dollars if CAD becomes unavailable, using the market exchange rate; an example rate of C$1 = U.S.$0.7174 is provided as of August 7, 2026. Net proceeds, estimated at approximately C$ [amount not specified], are earmarked for general corporate purposes. The notes will not be listed on any securities exchange and are subject to extensive offering restrictions, including prohibitions on sales to retail investors in Canada, the EEA, the UK and several other jurisdictions.
International Business Machines Corporation reported Q2 2026 revenue of $17,162 million, slightly above $16,977 million a year earlier. Net income was $2,165 million versus $2,194 million, with diluted EPS of $2.27. For the first six months, revenue reached $33,079 million and net income $3,381 million, both up year over year.
Software and Consulting grew, with Q2 Software revenue rising 5.1% and segment profit 8.9%, while Infrastructure revenue declined 7.4% and profit 13.4%. By region, Americas were essentially flat, and Europe/Middle East/Africa and Asia Pacific showed year-over-year revenue growth. Remaining performance obligations totaled about $68 billion, 69 percent expected to be recognized within two years.
Operating cash flow increased to $7,766 million for the first half, but $10,480 million of cash acquisitions, led by the Confluent purchase, drove a $6,423 million reduction in cash and equivalents to $7,217 million. IBM paid $11,602 million total consideration for Confluent, adding $7,238 million of goodwill and $3,834 million of identifiable intangibles, mostly assigned to the Software segment. Long-term debt rose to $56,212 million, total equity to $34,541 million, and common shares outstanding were 942,134,390 at June 30, 2026.
International Business Machines Corporation reported second-quarter 2026 revenue of $17.2B, up 1% year over year. GAAP net income from continuing operations was $2.2B and diluted EPS was $2.27, slightly below the prior-year $2.31. Operating (non-GAAP) diluted EPS was $2.93, up 5%.
Software revenue was $7.8B, up 5%, Consulting was $5.3B and flat, Infrastructure was $3.8B, down 7%, and Financing was $0.2B, up 12%. Net cash from operating activities in the quarter was $2.6B, while free cash flow was $2.5B. Year to date, free cash flow was $4.8B. IBM ended the quarter with $8.2B in cash, restricted cash and marketable securities and total debt of $62.0B, and has invested $10.5B in acquisitions this year.
IBM now expects full-year 2026 constant currency revenue growth of four-to-five percent, free cash flow to increase by about $1B year over year, and improved pre-tax income margin expansion. The board declared a quarterly dividend of $1.69 per share. Management highlighted ongoing investment in AI-driven offerings, including Lightwell for open source security and more than $10B planned for quantum computing over the next five years.
International Business Machines Corporation reported selected preliminary results for the second quarter of 2026. Revenue was $17.2 billion, up 1 percent, with Software revenue up 5 percent, Consulting roughly flat (up 1 percent at constant currency) and Infrastructure revenue down 7 percent.
GAAP gross profit margin was 57.7 percent, down 100 basis points, while operating (non-GAAP) gross margin was 59.4 percent, down 70 basis points. GAAP pre-tax income margin was 14.4 percent, down 90 basis points, and operating (non-GAAP) pre-tax income margin was 19.2 percent, up 30 basis points. GAAP diluted EPS from continuing operations was $2.27, down 2 percent, and operating (non-GAAP) diluted EPS was $2.93, up 5 percent. Year to date, net cash from operating activities was $7.8 billion and free cash flow was $4.8 billion.
Management cites a shortfall in Z systems and related transaction processing software, driven by client capex shifts toward other infrastructure and cybersecurity distractions, which delayed large deals. At the same time, Red Hat revenue growth accelerated to 11 percent, Distributed Infrastructure grew 37 percent with about $500 million backlog, and the z17 program remains at nearly 130 percent program-to-program. IBM highlighted new initiatives including Lightwell, a $5 billion commitment supported by more than 20,000 engineers to address open source software vulnerabilities, and quantum plans including a letter of intent for the Anderon quantum wafer foundry backed by $1 billion in CHIPS incentives, a $1 billion IBM cash contribution and more than $10 billion of planned quantum investment over five years, aiming for a large-scale fault-tolerant quantum computer by 2029.
INTERNATIONAL BUSINESS MACHINES CORP Senior Vice President Anne Robinson reported compensation-related stock activity involving restricted stock units that vested into common shares. On July 1, 2026, she exercised derivative awards to acquire 7,295 shares of IBM common stock.
To cover tax obligations, 4,035 shares were disposed of through share withholding at $286.725 per share, a non‑market transaction. After these exercises and tax withholdings, Robinson directly holds 13,016.578 shares of IBM common stock. The transactions reflect routine equity compensation vesting rather than open‑market buying or selling.
Laguarta Ramon reported acquisition or exercise transactions in this Form 4 filing.
INTERNATIONAL BUSINESS MACHINES CORP director Ramon Laguarta received a compensation-related equity award rather than trading shares on the market. He was granted 325 Promised Fee Shares tied to IBM common stock under the IBM Board of Directors Deferred Compensation and Equity Award Plan, increasing his holdings under this plan to 451 shares. These Promised Fee Shares represent deferred board fees and will be paid out in IBM common stock or cash after retirement, with distribution under the plan deferred until that time.
ZOLLAR ALFRED W reported acquisition or exercise transactions in this Form 4 filing.
INTERNATIONAL BUSINESS MACHINES CORP director Alfred W. Zollar received 325 Promised Fee Shares as compensation. The grant is a deferred fee award under the IBM Board of Directors Deferred Compensation and Equity Award Plan, linked to an underlying 325 shares of common stock at a reference price of $281.21 per share. These Promised Fee Shares are paid out after retirement in IBM common stock or cash, and distribution is deferred until retirement. Following this award, Zollar’s reported direct holdings tied to this plan total 9,940 Promised Fee Shares, reflecting routine board compensation rather than an open-market stock purchase.
VOSER PETER R. reported acquisition or exercise transactions in this Form 4 filing.
INTERNATIONAL BUSINESS MACHINES CORP director Peter R. Voser received a grant of 356 Promised Fee Shares on June 30, 2026 under the IBM Board of Directors Deferred Compensation and Equity Award Plan. These represent deferred board fees, not an open-market purchase.
The Promised Fee Shares are linked to IBM common stock and are scheduled to be paid out in company stock or cash after retirement, according to the plan’s terms. Following this award, Voser’s directly held position reported in this filing totals 32,600 shares.
Pollack Martha E reported acquisition or exercise transactions in this Form 4 filing.
INTERNATIONAL BUSINESS MACHINES CORP director Martha E. Pollack reported a routine compensation-related transaction involving deferred director fees. She received an award of 209 Promised Fee Shares on 2026-06-30 under the IBM Board of Directors Deferred Compensation and Equity Award Plan, at a reference price of $281.21 per share. These Promised Fee Shares are tied to IBM common stock and are paid out after retirement in either common stock or cash, with distribution deferred until retirement. Following this grant, Pollack directly holds 17,506 shares associated with these arrangements.