Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

International Business Machines Corp., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Services	7,927)	7,688)	8,028)	7,724)	7,682)	7,280)	7,483)	7,454)	7,405)	7,471)	7,760)	7,541)	7,553)	7,524)	7,497)	7,366)	7,640)	7,703)	7,677)	7,251)	7,201)	7,096)
Sales	9,049)	8,009)	11,478)	8,407)	9,129)	7,070)	9,902)	7,334)	8,196)	6,799)	9,449)	7,025)	7,739)	6,532)	9,021)	6,565)	7,748)	6,339)	8,844)	5,814)	6,808)	5,880)
Financing	186)	220)	180)	200)	166)	191)	168)	180)	169)	192)	172)	186)	183)	196)	173)	176)	147)	155)	173)	186)	209)	211)
Revenue	17,162)	15,917)	19,686)	16,331)	16,977)	14,541)	17,553)	14,968)	15,770)	14,462)	17,381)	14,752)	15,475)	14,252)	16,691)	14,107)	15,535)	14,197)	16,694)	13,251)	14,218)	13,187)
Services	(5,294)	(5,244)	(5,467)	(5,225)	(5,280)	(5,002)	(5,114)	(5,049)	(5,127)	(5,240)	(5,229)	(5,217)	(5,294)	(5,311)	(5,146)	(5,168)	(5,399)	(5,349)	(5,132)	(4,650)	(4,721)	(4,644)
Sales	(1,854)	(1,599)	(2,190)	(1,637)	(1,630)	(1,404)	(1,911)	(1,404)	(1,607)	(1,381)	(1,799)	(1,419)	(1,587)	(1,322)	(1,820)	(1,389)	(1,750)	(1,415)	(1,943)	(1,363)	(1,499)	(1,379)
Financing	(107)	(124)	(100)	(109)	(90)	(104)	(89)	(95)	(86)	(99)	(86)	(93)	(93)	(110)	(93)	(120)	(96)	(98)	(118)	(132)	(146)	(137)
Cost	(7,255)	(6,967)	(7,757)	(6,971)	(7,000)	(6,510)	(7,114)	(6,548)	(6,820)	(6,720)	(7,114)	(6,729)	(6,974)	(6,743)	(7,059)	(6,677)	(7,245)	(6,862)	(7,193)	(6,145)	(6,366)	(6,160)
Gross profit	9,907)	8,950)	11,929)	9,360)	9,977)	8,031)	10,439)	8,420)	8,950)	7,742)	10,267)	8,023)	8,501)	7,509)	9,632)	7,430)	8,290)	7,335)	9,501)	7,106)	7,852)	7,027)
Selling, general and administrative	(4,981)	(5,089)	(5,462)	(4,748)	(5,027)	(4,886)	(4,865)	(4,911)	(4,938)	(4,974)	(4,792)	(4,458)	(4,900)	(4,853)	(4,766)	(4,391)	(4,855)	(4,597)	(4,902)	(4,306)	(4,849)	(4,688)
Research and development	(2,311)	(2,173)	(2,187)	(2,082)	(2,097)	(1,950)	(1,967)	(1,876)	(1,840)	(1,796)	(1,748)	(1,685)	(1,687)	(1,655)	(1,604)	(1,611)	(1,673)	(1,679)	(1,625)	(1,606)	(1,641)	(1,616)
Intellectual property and custom development income	166)	172)	277)	219)	215)	253)	301)	238)	241)	216)	242)	190)	248)	180)	245)	121)	176)	121)	180)	153)	133)	146)
Operating income	2,781)	1,860)	4,557)	2,749)	3,068)	1,448)	3,908)	1,871)	2,413)	1,188)	3,969)	2,070)	2,162)	1,181)	3,507)	1,549)	1,938)	1,180)	3,154)	1,347)	1,495)	869)
Other income and (expense)	184)	—)	64)	173)	39)	165)	(178)	(2,244)	233)	318)	195)	215)	261)	244)	118)	(5,755)	81)	(246)	19)	(244)	(303)	(345)
Interest expense	(486)	(473)	(478)	(492)	(510)	(455)	(424)	(429)	(427)	(432)	(405)	(412)	(423)	(367)	(313)	(295)	(297)	(311)	(304)	(290)	(281)	(280)
Income (loss) from continuing operations before income taxes	2,479)	1,387)	4,143)	2,430)	2,597)	1,158)	3,306)	(802)	2,219)	1,074)	3,759)	1,873)	2,000)	1,058)	3,312)	(4,501)	1,722)	623)	2,869)	813)	911)	244)
(Provision for) benefit from income taxes	(313)	(171)	1,437)	(686)	(404)	(104)	(379)	485)	(389)	501)	(474)	(159)	(419)	(124)	(443)	1,287)	(257)	39)	(407)	224)	(101)	159)
Income (loss) from continuing operations	2,166)	1,216)	5,580)	1,744)	2,193)	1,054)	2,927)	(317)	1,830)	1,575)	3,285)	1,714)	1,581)	934)	2,869)	(3,214)	1,465)	662)	2,462)	1,037)	810)	403)
Income (loss) from discontinued operations, net of tax	(1)	—)	20)	—)	1)	1)	(13)	(13)	4)	30)	3)	(10)	2)	(7)	(159)	18)	(73)	71)	(129)	93)	515)	552)
Net income (loss)	2,165)	1,216)	5,600)	1,744)	2,194)	1,055)	2,914)	(330)	1,834)	1,605)	3,288)	1,704)	1,583)	927)	2,710)	(3,196)	1,392)	733)	2,333)	1,130)	1,325)	955)

An analysis of the financial performance reveals a consistent pattern of seasonal revenue growth and a strategic increase in long-term investment in research and development, contrasted by significant volatility in net income due to non-operating items.

Revenue and Gross Profit Trends: Total revenue exhibits a pronounced seasonal cycle, with peak performance occurring every fourth quarter. For instance, revenue typically rises from the mid-14 billion range in early quarters to peaks exceeding 17 billion in December, reaching a high of 19.69 billion in December 2025. This trend is primarily driven by the Sales segment, which demonstrates higher volatility and greater growth potential than the Services segment. Gross profit closely mirrors this seasonality, maintaining a strong correlation with total revenue and showing a general upward trajectory over the analyzed period.
Operating Expense Analysis: Selling, general, and administrative (SG&A) expenses remain relatively stable, fluctuating generally between 4.3 billion and 5.5 billion per quarter. In contrast, research and development (R&D) expenditures show a steady and deliberate increase, rising from approximately 1.6 billion in early 2021 to 2.31 billion by June 2026. This suggests a strategic pivot toward increased innovation and product development over the five-year horizon.
Profitability and Operating Performance: Operating income demonstrates resilience and growth, with a notable trend of strengthening fourth-quarter results. Operating income in December quarters increased from 3.15 billion in 2021 to 4.56 billion in 2025. However, net income is subject to extreme volatility that does not align with operating performance. Significant net losses were recorded in September 2022 and September 2024, directly correlating with substantial negative entries in other income and expenses, specifically losses of 5.76 billion and 2.24 billion in those respective quarters.
Financing and Tax Impacts: Interest expenses show a consistent upward trend, increasing from 280 million in March 2021 to 486 million by June 2026, indicating an increase in the cost of debt or a higher volume of leveraged financing. Tax provisions exhibit high variability, often offsetting operating gains or mitigating losses, as seen in the significant tax benefit of 1.29 billion in September 2022 which partially offset the heavy non-operating losses of that period.
Discontinued Operations: The impact of discontinued operations was most significant between 2021 and 2022, providing periodic gains and losses. By 2023 and beyond, the financial contribution from these operations became negligible, signaling the completion of structural divestitures or organizational streamlining.

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International Business Machines Corp. (NYSE:IBM)

Income StatementQuarterly Data

Income Statement
Quarterly Data