IBM reported third-quarter 2026 revenue of $17.1 billion, up 5% year on year. GAAP net income rose 26% to $2.2 billion, according to its October 21 earnings release.

Software revenue increased 8% and infrastructure revenue grew 4%, while consulting revenue was unchanged. GAAP gross margin nevertheless slipped 0.5 percentage points to 56.8%.

Year-to-date free cash flow reached $7.8 billion. IBM expects full-year revenue growth of 4–5% at constant currency.