Borrowings (Tables)

6 Months Ended

Jun. 30, 2026

Debt Disclosure [Abstract]

Long-term debt

Pre-Swap Borrowing

		Balance		Balance
($ in millions)	Maturities	6/30/2026		12/31/2025
U.S. dollar debt (weighted-average interest rate at June 30, 2026): (1) (2)
3.7%	2026	$	—	$	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	2,382		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
		$	36,453	$	38,979
Euro debt (weighted-average interest rate at June 30, 2026): (1)
2.3%	2027	$	2,286	$	2,349
1.2%	2028	2,914		2,114
1.5%	2029	1,143		1,174
1.7%	2030	2,000		2,055
2.8%	2031	4,000		2,936
0.7%	2032	1,829		1,879
3.2%	2033	1,257		1,292
2.4%	2034	2,286		1,174
3.8%	2035	1,143		1,174
3.5%	2037	1,029		1,057
3.9%	2038	857		—
1.2%	2040	971		998
4.0%	2043	1,143		1,174
3.8%	2045	857		881
		$	23,714	$	20,258
Other currencies (weighted-average interest rate at June 30, 2026): (1)
Pound sterling (4.9%)	2038	$	995	$	1,009
Japanese yen (1.2%)	2026–2028	781		811
Other (13.7%)	2026–2027	30		78
		$	61,974	$	61,134
Finance lease obligations (5.0% weighted-average interest rate at June 30, 2026)	2026–2035	1,102		1,153
		$	63,076	$	62,286
Less: net unamortized discount		799		806
Less: net unamortized debt issuance costs		197		185
Add: fair value adjustment (3)		(95)		(36)
		$	61,985	$	61,259
Less: current maturities		5,772		6,424
Total		$	56,212	$	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.

Pre-swap annual contractual obligations of long-term debt outstanding

Pre-swap annual contractual obligations of long-term debt outstanding at June 30, 2026, were as follows:

($ in millions)	Total
Remainder of 2026	$	437
2027	6,713
2028	6,001
2029	5,583
2030	4,448
Thereafter	39,894
Total	$	63,076

Interest on debt

($ in millions)
For the six months ended June 30:	2026		2025
Cost of financing	$	216	$	173
Interest expense	959		965
Interest capitalized	2		4
Total interest paid and accrued	$	1,177	$	1,141