IBM Q3 revenue rises 5% to $17.1 billion, raises full-year cash flow guidance

BlockBeats news, October 22, IBM's revenue for the third quarter of fiscal year 2026 was $17.1 billion, up about 5% year-over-year, with adjusted earnings per share of $2.95, both exceeding analyst expectations.

At the same time, the company raised its full-year software revenue growth guidance to about 7%-8% and increased its full-year free cash flow growth guidance to more than $1 billion. Software and mainframe deals previously delayed as customer spending shifted to data center infrastructure have begun to be signed, easing market concerns that IBM's growth is being hit by AI. The company's free cash flow reached $8 billion cumulatively in the first nine months, a record high for the same period. IBM therefore raised its full-year software growth guidance and free cash flow expectations.

However, IBM's stock price was not boosted by the better-than-expected earnings report for the time being, and is currently down 4.95% after hours, now at $239.02.