INTERNATIONAL BUSINESS MACHINES CORP (IBM) Form 10-Q — Oct 21, 2026
IBM reported Q3 2026 revenue of $17.1 billion, up 4.7% year to year (5.6% adjusted for currency), with diluted EPS from continuing operations of $2.31, up 25.5%, and operating (non-GAAP) EPS of $2.95, up 11.3%. Net income was $2.19 billion and free cash flow was $3.0 billion, up $0.7 billion from the prior year. Software led performance with revenue of $7.8 billion, up 8.2%, and segment profit up 15.2%, boosted by the Confluent acquisition ($11.6 billion total consideration, closed March 17, 2026) and Data revenue growth of 19.1%. Software ARR reached $24.9 billion, with OpenShift ARR around $2.4 billion.
Key figures
- Eps
- 2.3
- Revenue
- 17103000000
- Net Income
- 2190000000
- Revenue Yoy
- 4.7% (5.6% adjusted for currency)
- Total Assets
- 155011000000
- Cash Position
- 9233000000
- Shares Outstanding
- 945120805
- Rpo
- approximately $69 billion
- Software ARR
- $24.9 billion
- Open Shift ARR
- approximately $2.4 billion
- Chips Act Award
- up to $1.0 billion
- Gross Margin Q3
- 56.8%
- Free Cash Flow Q3
- 3000000000
- Nine Month Revenue
- 50182000000
- Consulting Backlog
- $30.2 billion
- Software Revenue Q3
- 7804000000
- Nine Month Net Income
- 5571000000
- Consulting Revenue Q3
- 5335000000
- Operating Non Gaap Eps
- 2.95
- Confluent Acquisition
- $11,602 million total purchase price ($31 per share, ~$11.3B equity value)
- Free Cash Flow Nine Months
- 7800000000
- Dividends Paid Nine Months
- 4762000000
- Infrastructure Revenue Q3
- 3707000000
- Software Revenue Growth Q3
- 8.2%
- Operating Non Gaap Earnings
- 2812000000
- Nine Month Acquisition Spend
- $12,600 million aggregate for four acquisitions
- Operating Cash Flow Nine Months
- 11791000000
AI analysis
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