IBM 8-K
PositiveEarningsGuidance raised
Software and Infrastructure lead growth; FY2026 free cash flow outlook raised to an increase of >$1B Y/Y.
Filed 2026-10-21 16:19 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with FY2026 guidance. Revenue grew 5% Y/Y, led by Software and Infrastructure; IBM raised its FY2026 free cash flow outlook to an increase of more than $1B Y/Y. It continues to expect 4%-5% full-year revenue growth at constant currency, with currency expected to be neutral to growth at current rates.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $17.1B, +5% Y/Y | $50.2B, +5% Y/Y |
| Gross profit margin, GAAP | 56.8%, vs 57.3% | 56.9%, vs 57.2% |
| Gross profit margin, operating (non-GAAP) | 58.5%, vs 58.7% | 58.6%, vs 58.6% |
| Income from continuing operations, GAAP | $2.2B, +26% Y/Y | $5.58B, +12% Y/Y |
| Income from continuing operations, operating (non-GAAP) | $2.81B, +12% Y/Y | $7.43B, +11% Y/Y |
| Diluted EPS from continuing operations, GAAP | $2.31, +26% Y/Y | $5.86, +11% Y/Y |
| Diluted EPS from continuing operations, operating (non-GAAP) | $2.95, +11% Y/Y | $7.79, +10% Y/Y |
| Net cash from operating activities | $4.03B, +31% Y/Y | $11.8B, +29% Y/Y |
| Free cash flow | $3.03B, +28% Y/Y | $7.79B, +8% Y/Y |
- Software revenue rose 8% Y/Y, Infrastructure 4%, while Consulting was flat. GAAP pre-tax margin was 14.6%, vs 14.9%; operating (non-GAAP) pre-tax margin was 19.3%, vs 18.6%.
- Cash, restricted cash and marketable securities totaled $11.1B, down $3.4B from year-end 2025. Debt totaled $63.8B, including $12.7B of IBM Financing debt; year-to-date acquisitions were $11.4B.
- IBM returned $1.6B in dividends during Q3. The board declared a $1.69/share quarterly dividend for holders of record 11/10/2026, payable 12/10/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue growth, constant currency | FY2026 | 4%-5% Y/Y | — | Reaffirmed |
| Free cash flow | FY2026 | Increase of more than $1B Y/Y | — | Raised |
At current foreign-exchange rates, currency is expected to be neutral to revenue growth.
Investor Takeaways
- Full-year constant-currency revenue growth and free cash flow will show whether IBM delivers on its reaffirmed revenue outlook and raised cash-flow outlook.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-21 22:34:48Z