The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.
The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.
International Business Machines Corp., consolidated cash flow 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
Net income (loss)
2,165)
1,216)
5,600)
1,744)
2,194)
1,055)
2,914)
(330)
1,834)
1,605)
3,288)
1,703)
1,584)
927)
2,710)
(3,196)
1,392)
733)
2,333)
1,130)
1,325)
955)
Pension settlement charge
—)
—)
—)
—)
—)
—)
388)
2,725)
—)
—)
—)
—)
—)
—)
—)
5,894)
—)
—)
—)
—)
—)
—)
Depreciation, includes operating lease right-of-use assets amortization expense
533)
555)
586)
584)
578)
536)
524)
563)
548)
533)
541)
521)
520)
527)
570)
586)
620)
631)
749)
1,037)
1,050)
1,052)
Amortization of capitalized software and acquired intangible assets
816)
719)
710)
699)
687)
641)
589)
705)
607)
598)
611)
572)
557)
547)
567)
577)
626)
625)
632)
647)
630)
620)
Stock-based compensation
498)
506)
430)
443)
441)
401)
345)
330)
316)
320)
290)
287)
288)
268)
248)
251)
254)
234)
263)
262)
244)
213)
Net (gain) loss on divestitures, asset sales and other
(66)
(12)
(951)
(5)
(19)
(22)
(2,350)
(353)
(26)
(253)
(1,194)
24)
(60)
(54)
(2,786)
38)
(49)
(51)
(2,157)
(7)
(152)
8)
Changes in operating assets and liabilities, net of acquisitions/divestitures
(1,349)
2,185)
(2,335)
(383)
(2,180)
1,759)
1,920)
(759)
(1,213)
1,365)
927)
(51)
(251)
1,559)
2,656)
(2,249)
(1,522)
1,076)
724)
(356)
(472)
2,066)
Adjustments to reconcile net income (loss) to cash provided by operating activities
432)
3,953)
(1,560)
1,338)
(493)
3,315)
1,416)
3,211)
232)
2,563)
1,175)
1,353)
1,054)
2,847)
1,255)
5,097)
(71)
2,515)
211)
1,583)
1,300)
3,959)
Net cash provided by operating activities
2,597)
5,169)
4,040)
3,082)
1,701)
4,370)
4,330)
2,881)
2,066)
4,168)
4,463)
3,056)
2,638)
3,774)
3,965)
1,901)
1,321)
3,248)
2,544)
2,713)
2,625)
4,914)
Payments for property, plant and equipment
(229)
(232)
(382)
(255)
(210)
(244)
(303)
(286)
(220)
(239)
(300)
(281)
(364)
(300)
(409)
(317)
(339)
(281)
(450)
(558)
(560)
(494)
Proceeds from disposition of property, plant and equipment/other
23)
8)
3)
7)
37)
74)
21)
479)
45)
12)
184)
112)
14)
11)
13)
8)
18)
72)
75)
97)
76)
139)
Investment in software
(154)
(159)
(171)
(162)
(163)
(151)
(141)
(138)
(224)
(134)
(148)
(112)
(137)
(168)
(147)
(138)
(172)
(169)
(151)
(176)
(204)
(175)
Purchases of marketable securities and other investments
(1,259)
(1,612)
(1,184)
(1,170)
(1,254)
(6,486)
(1,261)
(905)
(662)
(4,934)
(768)
(1,115)
(728)
(8,531)
(1,459)
(2,135)
(1,311)
(1,025)
(908)
(764)
(1,015)
(875)
Proceeds from disposition of marketable securities and other investments
1,152)
1,971)
3,542)
1,200)
4,035)
927)
853)
1,774)
3,453)
464)
4,005)
4,042)
1,550)
1,050)
2,010)
944)
1,029)
682)
945)
890)
763)
549)
Acquisition of businesses, net of cash acquired
(14)
(10,466)
(391)
(58)
(747)
(7,098)
(541)
(2,513)
(153)
(82)
(137)
(4,589)
(334)
(22)
(1,328)
(62)
(260)
(698)
(275)
(152)
(1,746)
(1,120)
Divestiture of businesses, net of cash transferred
—)
1)
—)
—)
—)
(1)
(7)
2)
—)
703)
—)
(10)
6)
—)
1)
3)
1,207)
61)
88)
51)
(10)
(15)
Non-operating finance receivables, net
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
1)
(17)
25)
(9)
Net cash used in investing activities
(481)
(10,489)
1,417)
(438)
1,698)
(12,979)
(1,379)
(1,587)
2,239)
(4,210)
2,836)
(1,953)
7)
(7,960)
(1,319)
(1,697)
172)
(1,358)
(675)
(629)
(2,671)
(2,000)
Proceeds from new debt
—)
7,437)
—)
6)
7)
8,378)
—)
—)
219)
5,486)
—)
154)
—)
9,432)
8)
3,394)
318)
4,084)
128)
151)
192)
51)
Payments to settle debt
(4,213)
(2,928)
(1,810)
(1,114)
(1,308)
(1,257)
(124)
(1,267)
(3,118)
(2,106)
(109)
(1,713)
(1,135)
(2,125)
(1,354)
(1,487)
(2,830)
(1,129)
(1,276)
(1,347)
(1,713)
(4,261)
Short-term borrowings (repayments) less than 90 days, net
—)
—)
—)
—)
—)
(29)
21)
9)
(1)
1)
(13)
9)
—)
(3)
(4)
230)
(1)
(8)
(880)
908)
21)
(89)
Common stock repurchases for tax withholdings
(115)
(350)
(167)
(414)
(153)
(284)
(112)
(189)
(151)
(199)
(64)
(98)
(144)
(96)
(78)
(14)
(235)
(80)
(67)
(18)
(193)
(41)
Proceeds from issuance of shares
240)
178)
175)
134)
185)
216)
108)
252)
125)
260)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
Financing, other
(49)
(42)
(30)
(55)
(22)
(32)
(23)
(27)
(53)
(43)
89)
31)
59)
(3)
70)
81)
40)
(15)
(2)
29)
29)
14)
Distribution from Kyndryl
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
879)
—)
—)
—)
Cash dividends paid
(1,590)
(1,576)
(1,574)
(1,569)
(1,563)
(1,549)
(1,546)
(1,543)
(1,536)
(1,522)
(1,518)
(1,515)
(1,510)
(1,497)
(1,494)
(1,491)
(1,488)
(1,475)
(1,474)
(1,471)
(1,467)
(1,457)
Net cash provided by (used in) financing activities
(5,727)
2,719)
(3,406)
(3,012)
(2,854)
5,443)
(1,676)
(2,765)
(4,515)
1,877)
(1,615)
(3,132)
(2,730)
5,708)
(2,852)
713)
(4,196)
1,377)
(2,692)
(1,748)
(3,131)
(5,783)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(35)
(176)
(10)
(59)
320)
167)
(329)
207)
(77)
(159)
130)
(120)
(26)
25)
220)
(196)
(263)
(4)
(27)
(94)
69)
(133)
Net change in cash, cash equivalents and restricted cash
Operating cash flow demonstrates a degree of resilience despite significant volatility in quarterly net income. While net income experienced sharp fluctuations, including substantial losses in September 2022 and September 2024, net cash provided by operating activities remained consistently positive, generally ranging between 1.3 billion and 5.2 billion US dollars. This divergence is primarily attributable to significant non-cash adjustments, most notably large pension settlement charges and consistent depreciation and amortization expenses.
Operating Performance and Cash Conversion
Net income exhibits high variability, with a notable peak of 5.6 billion US dollars in December 2025. However, the cash flow from operations is less volatile than bottom-line earnings, suggesting that non-cash items heavily influence reported profit. Depreciation and amortization expenses have remained relatively stable, though amortization of capitalized software and intangible assets showed a gradual upward trend from approximately 620 million US dollars in early 2021 to over 800 million US dollars by mid-2026.
Investment and Capital Expenditure Patterns
Capital expenditures for property, plant, and equipment have trended downward, decreasing from a range of 450 to 560 million US dollars in 2021 to a lower range of 220 to 300 million US dollars by 2026. In contrast, the company has engaged in episodic, large-scale acquisitions, with significant cash outflows occurring in March 2025 (7.1 billion US dollars) and March 2026 (10.5 billion US dollars), indicating a strategy of inorganic growth.
Financing and Liquidity Management
A cyclical pattern of debt issuance is observable, with substantial proceeds from new debt typically occurring in the first quarter of several years, such as March 2023 (9.4 billion US dollars), March 2025 (8.4 billion US dollars), and March 2026 (7.4 billion US dollars). These inflows appear to offset large acquisition costs and facilitate consistent debt settlements. Cash dividends have been maintained with high discipline, showing a steady, incremental increase from 1.46 billion US dollars per quarter in 2021 to 1.59 billion US dollars by June 2026, regardless of quarterly earnings volatility.
Treasury and Marketable Securities Activity
The company maintains an active management of marketable securities, with frequent and large-scale purchases and dispositions. This activity often serves as a liquidity buffer, as evidenced by the significant proceeds from dispositions in late 2023 and mid-2025, which helped stabilize net cash positions during periods of high investment spending.
Overall, the financial data indicates a business model that generates stable operating cash flows used to fund a consistent dividend policy and targeted, large-scale strategic acquisitions. The reliance on periodic large-scale debt issuance to fund these acquisitions suggests a leveraged approach to growth and capital structure management.
