IBM (NYSE: IBM) announced third-quarter 2026 earnings results, reporting total revenue of $17.1 billion, up 5 percent year-over-year. Chief Executive Officer Arvind Krishna highlighted that disciplined execution and client deployment of "Super Intelligence" are transforming operating models beyond narrow problems. Software revenue grew 8 percent, while Consulting remained flat.
Infrastructure revenue increased 4 percent, led by a 31 percent surge in Distributed Infrastructure. Gross profit margin stood at 56.8 percent (GAAP) and 58.5 percent (Non-GAAP). For the full year, IBM expects constant currency revenue growth of four to five percent and free cash flow to increase by more than $1 billion year-over-year.
CFO James Kavanaugh emphasized that productivity initiatives are driving tangible returns and enabling continued investment while returning value to shareholders through dividends. The company returned $1.6 billion to shareholders in dividends during the quarter. IBM ended the quarter with $11.1 billion in cash, restricted cash and marketable securities.
The company invested $11.4 billion in acquisitions year-to-date. Total debt rose to $63.8 billion, up $2.6 billion year-to-date.
Source: TechPowerUp News · Summarized by HeadlinesBriefing