IBM shares jump 5% as quarterly earnings beat estimates
U.S. technology company IBM reported third-quarter 2026 revenue of $17.1 billion and GAAP net income of approximately $2.2 billion on October 21.
IBM Q3 2026 earnings
| Financial metric | Actual | Market estimate |
|---|---|---|
| Revenue | $17.1 billion | $16.82 billion |
| Revenue growth | +5% YoY | — |
| Net income (GAAP) | Approximately $2.2 billion | — |
| Net income growth | +26% YoY | — |
| Diluted EPS (GAAP) | $2.31 | — |
| Adjusted EPS | $2.95 | $2.85 |
| Adjusted net income | Approximately $2.8 billion | — |
| Software revenue | $7.8 billion | Approximately $7.64 billion |
| Consulting revenue | $5.3 billion | — |
| Infrastructure revenue | $3.7 billion | — |
| Operating cash flow | $4.0 billion | — |
| Free cash flow | $3.0 billion | Approximately $2.63 billion |
| FY2026 constant-currency revenue growth guidance | 4%–5% | — |
| FY2026 free cash flow outlook | Increase of more than $1 billion YoY | — |
| Stock reaction (October 21, after-hours) | Gain of more than 5% | — |
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