IBM posts Q3 2026 earnings beat, lifts free‑cash‑flow outlook and declares $1.69 dividend
International Business Machines Corp. reported third‑quarter 2026 revenue of $17.1 billion, beating estimates. Adjusted earnings per share were $2.95, also ahead of forecasts. The company raised its full‑year free‑cash‑flow target by more than $1 billion year‑over‑year and announced a regular quarterly dividend of $1.69 per share.
Why it matters
The earnings beat and higher free‑cash‑flow outlook suggest stronger cash generation, which may support future dividend payments and share buybacks (the company said it expects free cash flow to increase by more than $1 billion YoY,). The dividend increase provides a modest yield boost for income‑focused investors (the $1.69 dividend was disclosed in the release,).
Key facts
- 1Revenue was $17.1 billion, up 5 percent on a reported basis and up 6 percent in constant currency. sec.gov
- 2Software segment revenue was $7.8 billion, up 8 percent on a reported basis and up 9 percent in constant currency. sec.gov
- 3GAAP gross profit margin was 56.8 percent, down 50 basis points from the prior quarter. sec.gov
- 4GAAP pre‑tax income margin was 14.6 percent, down 30 basis points from the prior quarter. sec.gov
- 5Free cash flow for the first nine months of 2026 was $7.8 billion, up 8 percent year‑over‑year. investing.com
- 6The board approved a regular quarterly cash dividend of $1.69 per share. prnewswire.com
Summary written by AlphAI AI Desk from 20 of 20 sources. Not investment advice. Figures are as stated by the linked sources.