IBM's board has approved the repurchase of $15 billion of its common stock.
The company still had about $5.6 billion remaining under a previous authorization as of September's end.
This means IBM can now buy back up to approximately $20.6 billion of its shares in total.
IBM said Tuesday that it expects to request approval for more stock buybacks at its October 2014 board meeting.
The company's board also declared a regular quarterly dividend of 95 cents. The dividend will be paid on Dec. 10 to shareholders of record on Nov. 8.
Shares of International Business Machines Corp. added. $3.95, or 2.2 percent, to $181.30 in afternoon trading.
Explore further: IBM lifts dividend 15 pct, sets $8B stock buyback