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International Business Machines cash flow, quarter by quarter

Latest: Q3 2026 · from the cash-flow statements filed with the SEC

Free cash flow$3.7B in Q3 2026 · $14.7B over twelve months

Operating cash flow$4.0B
Capital spending−$332M
Free cash flow+$3.7B
Cash / net income1.8×
Cash conversion cycle-1 days

Analysis

In Q3 2026, International Business Machines generated $4.0B of operating cash flow and spent $332M on capital projects, leaving free cash flow of $3.7B. That is $866M more than in Q3 2025 ($2.8B).

Over the twelve months to Sep 30, 2026, operating cash flow was $15.8B; the largest uses were acquisitions ($11.8B), dividends ($6.3B), capital spending ($1.2B); besides operations, cash came from shares issued ($737M), other investing ($715M); the cash balance fell by $2.3B.

Operating cash flow was $4.0B against net income of $2.2B — 1.8× profit, cash ran ahead of reported earnings. The largest differences: depreciation & amortization +$1.4B, stock-based pay +$535M, impairments −$0.

Its cash conversion cycle was -1 days (receivables 32 + inventory 23 − payables 55): suppliers fund its working capital.

Free cash flow

International Business Machines: free cash flow by quarterInternational Business Machines: free cash flow by quarter$4.0BQ4 2024$4.1BQ1 2025$1.5BQ2 2025$2.8BQ3 2025$3.7BQ4 2025$4.9BQ1 2026$2.4BQ2 2026$3.7BQ3 2026
Operating cash flow less capital spending.
International Business Machines: operating cash flow against capital spendingInternational Business Machines: operating cash flow against capital spendingOperating cash flowCapital spending$4.3B$303MQ4 2024$4.4B$244MQ1 2025$1.7B$210MQ2 2025$3.1B$255MQ3 2025$4.0B$382MQ4 2025$5.2B$232MQ1 2026$2.6B$229MQ2 2026$4.0B$332MQ3 2026
Latest (Q3 2026): Operating cash flow $4.0B, Capital spending $332M.

Capital allocation, year by year

International Business Machines: where the cash came from (up) and went (down), by fiscal yearInternational Business Machines: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingAcquisitionsDividendsFY2021: Operating cash flow $12.8BFY2021: Net borrowing −$8.2BFY2021: Asset sales $501MFY2021: Capital spending −$2.1BFY2021: Acquisitions −$3.3BFY2021: Dividends −$5.9B$13.3BFY2021FY2022: Operating cash flow $10.4BFY2022: Net borrowing $1.2BFY2022: Shares issued $279MFY2022: Asset sales $1.4BFY2022: Capital spending −$1.3BFY2022: Acquisitions −$2.3BFY2022: Dividends −$5.9B$13.3BFY2022FY2023: Operating cash flow $13.9BFY2023: Net borrowing $4.5BFY2023: Shares issued $414MFY2023: Asset sales $317MFY2023: Capital spending −$1.2BFY2023: Acquisitions −$5.1BFY2023: Dividends −$6.0B$19.2BFY2023FY2024: Operating cash flow $13.4BFY2024: Net borrowing −$880MFY2024: Shares issued $745MFY2024: Asset sales $1.3BFY2024: Capital spending −$1.0BFY2024: Acquisitions −$3.3BFY2024: Dividends −$6.1B$15.4BFY2024FY2025: Operating cash flow $13.2BFY2025: Net borrowing $2.9BFY2025: Shares issued $710MFY2025: Asset sales $120MFY2025: Capital spending −$1.1BFY2025: Acquisitions −$8.3BFY2025: Dividends −$6.3B$16.9BFY2025
Over these 5 years operating cash flow totalled $63.8B; the largest uses were dividends ($30.3B) and acquisitions ($22.3B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$9.2B
Debt$70.8B
Net debt$61.6B
Due within a year$6.4B

International Business Machines funds itself: free cash flow was $14.7B over the last twelve months, and $9.2B of cash and investments stands against $70.8B of debt ($6.4B due within a year, 1.4× covered by cash).

International Business Machines: debt maturities by year (FY2025)International Business Machines: debt maturities by year (FY2025)$6.4BYear 1$6.8BYear 2$5.2BYear 3$5.1BYear 4$4.5BYear 5$34.3BAfter year 5
Principal due in each year as disclosed in the annual report, against $9.2B of cash and investments now.

Where the cash came from and went

International Business Machines: sources (+) and uses (−) of cash, Q3 2026International Business Machines: sources (+) and uses (−) of cash, Q3 2026Operating cash flow$4.0BCash drawn (+) / kept (−)−$2.1BNet borrowing (+) / repaid (−)$1.9BDividends−$1.6BOther investing−$1.4BAcquisitions−$884MOther financing$549MTaxes on employees’ shares−$352MCapital spending−$332MShares issued$144MAsset & business sales$58.0MExchange rates$2.0M
International Business Machines: sources (+) and uses (−) of cash, TTM to Q3 2026International Business Machines: sources (+) and uses (−) of cash, TTM to Q3 2026Operating cash flow$15.8BAcquisitions−$11.8BDividends−$6.3BCash drawn (+) / kept (−)$2.3BCapital spending−$1.2BTaxes on employees’ shares−$984MShares issued$737MOther investing$715MOther financing$428MNet borrowing (+) / repaid (−)$347MExchange rates−$220MAsset & business sales$93.0M

From profit to cash

International Business Machines: net income to operating cash flow, Q3 2026International Business Machines: net income to operating cash flow, Q3 2026Net income$2.2BDepreciation & amortization$1.4BStock-based pay$535MOperating cash flow$4.0B
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q3 2026322355-1
Q2 20263320531
Q1 20264117572
Q4 2025321651-4
Q3 2025321752-2
Q2 20253217490
Q1 20253919535
Q4 20243217472

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsDividendsNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q3 2026$4.0B−$332M−$884M−$1.6B$1.9B$144M−$2.1B$3.7B
Q2 2026$2.6B−$229M−$15.0M−$1.6B−$4.2B$240M$3.6B$2.4B
Q1 2026$5.2B−$232M−$10.5B−$1.6B$4.5B$178M$2.8B$4.9B
Q4 2025$4.0B−$382M−$391M−$1.6B−$1.8B$175M−$2.0B$3.7B
Q3 2025$3.1B−$255M−$58.0M−$1.6B−$1.1B$134M$427M$2.8B
Q2 2025$1.7B−$210M−$747M−$1.6B−$1.3B$185M−$865M$1.5B
Q1 2025$4.4B−$244M−$7.1B−$1.5B$7.1B$216M$3.0B$4.1B
Q4 2024$4.3B−$303M−$541M−$1.5B−$103M$108M−$946M$4.0B

International Business Machines: income statement and cash flow

International Business Machines, Q3 2026: revenue $17.1B (+5% year over year), operating margin 14.5%. The chart follows the revenue to costs, profit and cash.

International Business Machines: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.