IBM Q3 revenue rises 5% to $17.1 billion

Oct 21, 2026
IBM reported third quarter 2026 revenue of $17.1 billion, up 5% from a year earlier, as software and infrastructure sales grew.

IBM reported in a press release third quarter 2026 revenue of $17.1 billion, up 5% from a year earlier and 6% at constant currency. Net income rose 26% to $2.2 billion, while diluted earnings from continuing operations reached $2.31 per share.

Software revenue increased 8% to $7.8 billion, led by 19% growth in data revenue and 11% growth in Red Hat. Infrastructure revenue rose 4% to $3.7 billion, with distributed infrastructure up 31% and IBM Z revenue down 20%. Consulting revenue was nearly unchanged at $5.3 billion.

IBM generated $3 billion in free cash flow during the quarter and $7.8 billion during the first nine months of 2026. The company continues to expect full year revenue growth of 4% to 5% at constant currency and now expects annual free cash flow to increase by more than $1 billion.

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