IBM Q3 2026 Earnings Release

IBM announced its third-quarter 2026 results, exceeding expectations with accelerated revenue growth driven by Software and Infrastructure. The company reported revenue of $17.1 billion, a 5% increase (6% in constant currency), with Software revenue up 8% (9% at constant currency), Consulting revenue flat (up 2% at constant currency), and Infrastructure revenue up 4% (5% at constant currency). Diluted earnings per share were $2.31 on a GAAP basis and $2.95 on an operating (non-GAAP) basis. Year-to-date, net cash from operating activities was $11.8 billion, and free cash flow was $7.8 billion. IBM is raising its full-year outlook for free cash flow, now expecting it to increase by more than $1 billion year-over-year. The company declared a quarterly cash dividend of $1.69 per common share. Segment results showed Software revenue at $7.8 billion, Consulting at $5.3 billion, and Infrastructure at $3.7 billion. IBM ended the quarter with $11.1 billion in cash, restricted cash, and marketable securities.