IBM Reports Q3 2026 Growth Driven by Software and Infrastructure Acceleration
IBM reported third-quarter revenue of $17.1 billion, representing a 6% increase at constant currency. The growth was primarily driven by strong performance in the software segment, which grew 9%, and infrastructure, which saw a 5% uptick led by significant gains in distributed infrastructure. Non-GAAP EPS rose 11% year-over-year to $2.95, reflecting improved operational discipline and margin expansion. The company's strategic focus on AI is yielding results, with Red Hat revenue growing 11% and OpenShift ARR increasing over 30%. While the consulting segment saw a modest 2% growth as clients modernize for AI deployment, IBM continues to reinvest productivity gains into digital assets. Looking ahead, IBM raised its full-year free cash flow guidance, expecting an increase of more than $1 billion year-over-year.
Tickers: $IBM
Topics: financial guidance free cash flow infrastructure revenue revenue growth software revenue