IBM Q3 2026 Revenue $17.1B Up 5% (6% CC); Raises FY 2026 FCF Guidance to >$1B YoY Increase

Q3 2026 revenue of $17.1 billion (+5% reported, +6% CC) is tracking above the FY 2026 CC revenue growth guidance midpoint of 4.5%.

FY 2026 free cash flow guidance was raised qualitatively from an increase of about $1 billion YoY to more than $1 billion YoY, while FY 2026 CC revenue growth guidance was maintained at 4-5%.

Profitability expanded: operating (non-GAAP) pre-tax margin of 19.3% (up 70 bps) and operating (non-GAAP) diluted EPS of $2.95 (up 11%); GAAP diluted EPS of $2.31 (up 26%) reflects the larger GAAP comparison effect.

Software remained the growth engine at $7.8 billion (+8%/+8.7% CC) with segment profit margin of 35.0% (vs 32.9% Q3 2025), while Consulting was flat and Financing declined, indicating segment mix headwinds.

Q3 free cash flow of $3.0 billion (up $0.7 billion YoY) and 9M free cash flow of $7.8 billion (up $0.6 billion YoY) drove the upgrade to the full-year FCF guide.

M&A pace remains heavy at $11.4 billion invested in acquisitions YTD, with goodwill rising to $74.9 billion from $67.7 billion at year-end 2025, a key context for revenue and segment performance.

Capital return continues with a $1.69 per share quarterly dividend declared (record Nov 10, 2026; payment Dec 10, 2026) and $1.6 billion returned in dividends during Q3.