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IBM reports Q3 2026 revenue growth of 6% led by software
IBM announced third-quarter 2026 financial results on October 21, 2026, reporting revenue of $17.1 billion, a 5% increase (6% at constant currency). The growth was primarily driven by the software segment, which saw an 8% increase to $7.8 billion.
Net income rose 26% year-over-year to $2.2 billion, while operating earnings per share climbed 11% to $2.95. The company reported significant free cash flow, reaching $7.8 billion for the first nine months of the year, an increase of approximately $600 million compared to the previous year. Based on these results, IBM raised its full-year free cash flow outlook, now expecting an increase of more than $1 billion year-over-year.
Key segment performance included a 4% rise in infrastructure revenue and flat consulting revenue. Within software, Red Hat revenue grew by 11% and data revenue increased by 19%. Additionally, IBM's open-source security tool, Lightwell, has built a sales pipeline approaching $700 million following its general availability.
Entities
Arvind Krishna · IBM · Jim Kavanaugh · Lightwell · Red Hat
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] IBM reported third-quarter 2026 revenue of $17.1 billion. newsroom.ibm.com
- [● 2 SOURCES] Net income rose 26% to $2.2 billion. newsroom.ibm.com
- [○ 1 SOURCE] IBM raised its full-year free cash flow outlook to an increase of more than $1 billion year-over-year. newsroom.ibm.com
- [○ 1 SOURCE] The Lightwell security tool has a sales pipeline approaching $700 million.
- [● 3 SOURCES] Revenue grew 5% year-over-year, or 6% at constant currency. newsroom.ibm.com
- [● 2 SOURCES] Software revenue increased by 8% to $7.8 billion. newsroom.ibm.com
- [○ 1 SOURCE] Red Hat revenue rose 11%.
- [● 2 SOURCES] Infrastructure revenue increased by 4%. newsroom.ibm.com