IBM reports Q3 2026 revenue beat and raises free‑cash‑flow outlook
+2 new sources since this summary was written
IBM posted third‑quarter 2026 revenue of $17.1 billion, up 5 % year‑over‑year (reported) and 6 % in constant‑currency terms. Software revenue reached $7.8 billion, rising 8 % (reported) and 9 % in constant currency, while consulting was flat and infrastructure grew 4 % (reported) and 5 % in constant currency. Adjusted earnings per share were $2.95, beating estimates, and the board declared a $1.69 quarterly dividend. The company lifted its full‑year free‑cash‑flow target by more than $1 billion year‑over‑year.
Why it matters
The revenue and EPS beat, together with the raised free‑cash‑flow outlook, suggest stronger cash generation than previously expected. Analysts note the beat could support the stock price and may lead to higher target prices.
Key facts
- 1Revenue was $17.1 billion, up 5 % YoY (reported) and up 6 % in constant currency. prnewswire.com
- 2Software revenue was $7.8 billion, up 8 % YoY (reported) and up 9 % in constant currency. prnewswire.com
- 3Consulting revenue was flat, up 2 % in constant currency. prnewswire.com
- 4Infrastructure revenue was $3.7 billion, up 4 % YoY (reported) and up 5 % in constant currency. prnewswire.com
- 5GAAP gross profit margin was 56.8 %, down 50 basis points year‑over‑year. prnewswire.com
- 6Adjusted (Non‑GAAP) EPS was $2.95, beating estimates by $0.08. seekingalpha.com
Summary written by AlphAI AI Desk from 20 of 38 sources. Not investment advice. Figures are as stated by the linked sources.