v3.25.4
Financing Receivables (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Summary of the components of financing receivables
A summary of the components of the company’s financing receivables is presented as follows:
($ in millions)   
Client Financing Receivables
Client Loan and
Installment Payment
Receivables
(Loans)		Investment in
Sales-Type and
Direct Financing
Leases		Commercial Financing Receivables
At December 31, 2025:Held for
Investment
Held for
Sale (1)
Total
Financing receivables, gross$9,634 $4,338 $1,865 $1,131 $16,968 
Unearned income(710)(479)— — (1,189)
Unguaranteed residual value— 545 — — 545 
Amortized cost$8,925 $4,403 $1,865 $1,131 $16,324 
Allowance for credit losses(69)(67)(5)— (141)
Total financing receivables, net$8,856 $4,336 $1,861 $1,131 $16,184 
Current portion$4,226 $1,257 $1,861 $1,131 $8,475 
Noncurrent portion$4,630 $3,079 $— $— $7,708 
($ in millions)  
Client Financing Receivables
Client Loan and
Installment Payment
Receivables
(Loans)		Investment in
Sales-Type and
Direct Financing
Leases		Commercial Financing Receivables
At December 31, 2024:Held for
Investment
Held for
Sale (1)
Total
Financing receivables, gross$7,425 $3,406 $1,322 $900 $13,052 
Unearned income(547)(344)— — (891)
Unguaranteed residual value— 479 — — 479 
Amortized cost$6,878 $3,540 $1,322 $900 $12,639 
Allowance for credit losses(73)(50)(5)— (128)
Total financing receivables, net$6,804 $3,491 $1,317 $900 $12,512 
Current portion$3,535 $1,408 $1,317 $900 $7,159 
Noncurrent portion$3,269 $2,083 $— $— $5,353 
(1)The carrying value of the receivables classified as held for sale approximates fair value.
Schedule of transfer of commercial financing assets
The following table presents the total amount of commercial financing receivables transferred.
($ in millions) 
For the year ended December 31:20252024
Commercial financing receivables
Receivables transferred during the period$8,035 $7,860 
Receivables uncollected at end of period (1)
$1,052 $1,150 
(1)Of the total amount of commercial financing receivables sold and derecognized from the Consolidated Balance Sheet, the amounts presented remained uncollected from business partners as of December 31, 2025 and 2024.
Schedule of financing receivables and allowance for credit losses by class
The following tables present the amortized cost basis for client financing receivables at December 31, 2025 and 2024, further segmented by three classes: Americas, Europe/Middle East/Africa (EMEA) and Asia Pacific. The commercial financing receivables portfolio segment is excluded from the tables in the sections below as the receivables are short term in nature and the current estimated risk of loss and resulting impact to the company’s financial results are not material.
($ in millions)
At December 31, 2025:AmericasEMEAAsia PacificTotal
Amortized cost$7,278 $4,440 $1,610 $13,328 
Allowance for credit losses
Beginning balance at January 1, 2025$69 $45 $9 $123 
Write-offs(16)(1)(5)(22)
Recoveries0 0 0 1 
Additions/(releases)10 10 2 22 
Other (1)
7 6 0 13 
Ending balance at December 31, 2025$69 $60 $7 $136 
($ in millions)
At December 31, 2024:AmericasEMEAAsia PacificTotal
Amortized cost$5,861 $3,128 $1,429 $10,418 
Allowance for credit losses 
Beginning balance at January 1, 2024$92 $48 $11 $150 
Write-offs(2)(1)0 (3)
Recoveries1 0 0 1 
Additions/(releases)(10)0 (2)(12)
Other (1)
(11)(2)0 (14)
Ending balance at December 31, 2024$69 $45 $9 $123 
(1)Primarily represents translation adjustments.
Schedule of past due financing receivables
($ in millions)    
At December 31, 2025:Total
Amortized
Cost
Amortized
Cost
> 90 Days (1)
Amortized
Cost
> 90 Days and
Accruing (1)
Billed
Invoices
> 90 Days and
Accruing
Amortized
Cost
Not
Accruing (2)
Americas$7,278 $70 $20 $1 $50 
EMEA4,440 33 $0 0 33 
Asia Pacific1,610 6 3 0 3 
Total client financing receivables$13,328 $108 $24 $1 $85 
($ in millions)    
At December 31, 2024:Total
Amortized
Cost
Amortized
Cost
> 90 Days (1)
Amortized
Cost
> 90 Days and
Accruing (1)
Billed
Invoices
> 90 Days and
Accruing
Amortized
Cost
Not
Accruing (2)
Americas$5,861 $66 $7 $1 $62 
EMEA3,128 29 1 0 28 
Asia Pacific1,429 8 0 0 7 
Total client financing receivables$10,418 $103 $8 $1 $97 
(1)At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days.
(2)Of the amortized cost not accruing, there was a related allowance of $83 million and $94 million at December 31, 2025 and 2024, respectively. Financing income recognized on these receivables was not material for the years ended December 31, 2025 and 2024.
Schedule of amortized cost by credit quality indicator
The following tables present the amortized cost basis for client financing receivables by credit quality indicator at December 31, 2025 and 2024, respectively. Receivables with a credit quality indicator ranging from Aaa to Baa3 are considered investment grade. All others are considered non-investment grade. The credit quality indicators reflect mitigating credit enhancement actions taken by customers which reduce the risk to IBM. Gross write-offs by vintage year at December 31, 2025 were not material.
($ in millions)
AmericasEMEAAsia Pacific
At December 31, 2025:Aaa - Baa3Ba1 - CAaa - Baa3Ba1 - CAaa - Baa3Ba1 - C
Vintage year      
2025$3,979 $644 $2,223 $501 $777 $93 
20241,142 220 715 296 330 46 
2023708 181 262 143 177 9 
2022237 27 118 74 126 17 
202173 4 42 8 25 1 
2020 and prior15 49 15 41 5 4 
Total$6,153 $1,125 $3,376 $1,064 $1,440 $170 
($ in millions)
AmericasEMEAAsia Pacific
At December 31, 2024:Aaa - Baa3Ba1 - CAaa - Baa3Ba1 - CAaa - Baa3Ba1 - C
Vintage year      
2024$2,080 $621 $1,145 $514 $616 $77 
20231,372 310 341 258 285 19 
2022950 113 408 194 254 26 
2021233 24 125 27 69 5 
202043 17 29 15 36 8 
2019 and prior53 44 37 35 26 7 
Total$4,732 $1,129 $2,085 $1,043 $1,287 $142