Companies /Technology
International Business Machines Corp
NYSE: IBM Information Technology Services
$255.35
▲ $5.31 (+2.12%) today
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IBM (IBM) Q3 2026 Earnings

Reported Oct 21, 2026, 4:19pm ET · SEC source
$2.95
Beat +2.72%
EPS · est. $2.87 Adjusted
$17.1B
Beat +1.54%
Revenue · est. $16.8B
1 quarter
Consecutive EPS beats

How Did IBM Stock React to Q3 2026 Earnings?

% change · around the report
−12%−8%−4%0Oct 21Oct 22report 4:19pm ETearnings−1.2%−4.8%
−12%−8%−4%0Oct 21Oct 22earnings−1.2%−4.8%
IBM −4.8%S&P 500 −1.2%
−12%−8%−4%0Oct 21Oct 22report 4:19pm ETearnings−3.0%−4.8%
−12%−8%−4%0Oct 21Oct 22earnings−3.0%−4.8%
IBM −4.8%NASDAQ −3.0%
−8%−4%0Oct 20Oct 29report 4:19pm ETearnings−1.1%−1.1%
−8%−4%0Oct 20Oct 29earnings−1.1%−1.1%
IBM −1.1%S&P 500 −1.1%
−8%−4%0Oct 20Oct 29report 4:19pm ETearnings−2.8%−1.1%
−8%−4%0Oct 20Oct 29earnings−2.8%−1.1%
IBM −1.1%NASDAQ −2.8%
+0.26%
Day of report
+0.58%
Next session
+2.45%
One week

Did IBM Beat Earnings? Q3 2026 Results

Yes. IBM reported Q3 2026 earnings of $2.95 a share on Oct 21, 2026, beating the $2.87 consensus estimate by 2.7%. Revenue was $17.1B against a $16.8B estimate.

International Business Machines posted a solid third quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines as Software momentum carried the company's results higher. Adjusted EPS came in at $2.95, topping the $2.87 consensus estimate by 2.72%, while revenue of $17.10 billion grew 4.7% year over year and edged past the $16.84 billion analyst forecast by 1.54%. The clearest driver behind the beat was IBM's Software segment, which generated $7.80 billion in revenue, up 8% year over year, with Red Hat growing 11% and the Data sub-segment surging 19%, reflecting continued enterprise demand for hybrid cloud solutions. Free cash flow reached $3.03 billion for the quarter, up $654 million from a year earlier, giving management confidence to raise its full-year free cash flow outlook, now targeting an increase of more than $1 billion year over year. IBM also reaffirmed constant currency revenue growth of 4-5% for the full year, with currency now expected to be neutral, leaving investors with a steady forward picture alongside a quarterly dividend of $1.69 per share.

Key Takeaways
  • Software segment revenue growth of 8% led by Data (up 19%) and Red Hat (up 11%)
  • Distributed Infrastructure growth of 31% driving Infrastructure segment
  • Operating pre-tax margin expansion of 70 basis points to 19.3% (non-GAAP)
  • Productivity initiatives driving profit and free cash flow growth
  • Client adoption of Super Intelligence transforming operating models

“Disciplined execution throughout the quarter drove accelerated revenue growth and strong free cash flow. Our clients are now deploying Super Intelligence in ways that transform entire operating models, instead of simply addressing narrow or novel problems. IBM's technology and expertise are helping organizations drive growth and serve customers with greater speed, precision and efficiency than ever before.”

IBM CEO, on the earnings call

What Is IBM's Outlook?

IBM continues to expect full-year 2026 constant currency revenue growth in the range of 4-5%, with currency now expected to be neutral to growth for the year. The company raised its free cash flow outlook, now expecting full-year free cash flow to increase by more than $1 billion year-over-year.

IBM YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$5.0B$10.0B$15.0B$16.3B$17.1BRevenue$9.6B$9.7BGross Profit$2.7B$2.5BOperating Income$1.7B$2.2BNet Income
$0$5.0B$10.0B$15.0BRevenueGross ProfitOperating IncomeNet Income
IBM income statement, Q3 2026 versus Q3 2025
Metric Q3 2026 Q3 2025 Year over year
Revenue $17.1B $16.3B +4.7%
Gross Profit $9.7B $9.6B +1.3%
Operating Income $2.5B $2.7B −6.1%
Net Income $2.2B $1.7B +25.6%

IBM Revenue by Segment

Software$7.8B+8.2%
Consulting$5.3B+0.2%
Infrastructure$3.7B+4.2%
Financing$192.0M−3.9%

When Does IBM Report Next?

Expected report date
After the close
Release timing

Figures from SEC filings and company reports. Not investment advice.