Borrowings

3 Months Ended

Mar. 31, 2026

Debt Disclosure [Abstract]

Borrowings

Borrowings:

Short-Term Debt

The company's total short-term debt at March 31, 2026 and December 31, 2025 was $8,655 million and $6,424 million, respectively, and primarily consisted of current maturities of long-term debt detailed in “Long-Term Debt” below. Included in the March 31, 2026 short-term debt balance is $1,100 million of debt acquired in the Confluent acquisition in March, which was settled on April 15, 2026 (refer to note 5, "Acquisitions & Divestitures," for additional information).

Long-Term Debt

Pre-Swap Borrowing

		Balance		Balance
($ in millions)	Maturities	3/31/2026		12/31/2025
U.S. dollar debt (weighted-average interest rate at March 31, 2026): (1) (2)
3.3%	2026	$	3,000	$	5,800
3.3%	2027	4,119		4,119
4.8%	2028	2,318		2,319
3.7%	2029	4,256		3,757
3.2%	2030	2,384		2,355
4.5%	2031	1,000		500
4.6%	2032	2,700		2,700
4.7%	2033	1,250		750
4.9%	2034	1,000		1,000
5.2%	2035	900		900
5.0%	2036	1,000		—
8.0%	2038	83		83
4.5%	2039	2,745		2,745
2.9%	2040	650		650
4.0%	2042	1,107		1,107
5.3%	2044	1,000		1,000
7.0%	2045	27		27
4.7%	2046	650		650
4.3%	2049	3,000		3,000
3.0%	2050	750		750
4.2%	2052	1,400		1,400
5.1%	2053	650		650
5.3%	2054	1,400		1,400
5.7%	2055	1,000		1,000
5.8%	2056	750		—
7.1%	2096	316		316
		$	39,456	$	38,979
Euro debt (weighted-average interest rate at March 31, 2026): (1)
2.3%	2027	$	2,304	$	2,349
1.1%	2028	2,937		2,114
1.5%	2029	1,152		1,174
1.7%	2030	2,016		2,055
2.8%	2031	4,031		2,936
0.7%	2032	1,843		1,879
3.2%	2033	1,267		1,292
2.4%	2034	2,304		1,174
3.8%	2035	1,152		1,174
3.5%	2037	1,037		1,057
3.9%	2038	864		—
1.2%	2040	979		998
4.0%	2043	1,152		1,174
3.8%	2045	864		881
		$	23,901	$	20,258
Other currencies (weighted-average interest rate at March 31, 2026): (1)
Pound sterling (4.9%)	2038	$	990	$	1,009
Japanese yen (1.2%)	2026–2028	798		811
Other (13.7%)	2026–2027	53		78
		$	65,198	$	61,134
Finance lease obligations (5.1% weighted-average interest rate at March 31, 2026)	2026–2035	1,139		1,153
		$	66,337	$	62,286
Less: net unamortized discount		809		806
Less: net unamortized debt issuance costs		203		185
Add: fair value adjustment (3)		(65)		(36)
		$	65,260	$	61,259
Less: current maturities		7,554		6,424
Total		$	57,706	$	54,836

(1)Includes notes, debentures, bank loans and secured borrowings.

(2)Includes a total of $4.9 billion from the 2024 issuance of U.S. dollar fixed rate notes by IBM International Capital Pte. Ltd (IIC), a 100-percent owned finance subsidiary of IBM. The notes are fully and unconditionally guaranteed by IBM and no other subsidiary of IBM guarantees the notes.

(3)The portion of the company’s fixed-rate debt obligations that is hedged is reflected in the Consolidated Balance Sheet as an amount equal to the sum of the debt’s carrying value and a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates.

The company’s indenture governing its debt securities and its various credit facilities each contain significant covenants which obligate the company to promptly pay principal and interest, limit the aggregate amount of secured indebtedness and sale and leaseback transactions to 10 percent of the company’s consolidated net tangible assets, and restrict the company’s ability to merge or consolidate unless certain conditions are met. The credit facilities also include a covenant on the company’s consolidated net interest expense ratio, which cannot be less than 2.20 to 1.0, as well as a cross default provision with respect to other defaulted indebtedness of at least $500 million.

The company is in compliance with its debt covenants and provides periodic certifications to its lenders. The failure to comply with its debt covenants could constitute an event of default with respect to the debt to which such provisions apply. If certain events of default were to occur, the principal and interest on the debt to which such event of default applied would become immediately due and payable.

On February 3, 2026, the company issued $3.25 billion of U.S. dollar fixed-rate notes in tranches with maturities ranging from 3 to 30 years and coupons ranging from 4.0 to 5.8 percent; and $3.3 billion of Euro fixed-rate notes in tranches with maturities ranging from 5 to 12 years and coupons ranging from 3.0 to 3.85 percent; and $0.9 billion of Euro floating-rate notes with a maturity of 2 years.

Pre-swap annual contractual obligations of long-term debt outstanding at March 31, 2026, were as follows:

($ in millions)	Total
Remainder of 2026	$	3,533
2027	6,724
2028	6,027
2029	5,586
2030	4,460
Thereafter	40,007
Total	$	66,337

Interest on Debt

($ in millions)
For the three months ended March 31:	2026		2025
Cost of financing	$	111	$	87
Interest expense	473		455
Interest capitalized	1		2
Total interest paid and accrued	$	585	$	544

Lines of Credit

The company has a $2.5 billion Three-Year Credit Agreement and $7.5 billion Five-Year Credit Agreement (the Credit Agreements) with maturity dates of June 20, 2028 and June 22, 2030, respectively. The Credit Agreements permit the company and its subsidiary borrowers to borrow up to $10 billion on a revolving basis. At March 31, 2026, there were no borrowings by the company, or its subsidiaries, under these credit facilities.