IBM Quantum

IBM reported third-quarter 2026 revenue of $17.1 billion, up 5% year over year (6% at constant currency), compared with $16.3 billion in the prior-year quarter. GAAP gross profit margin was 56.8%, down 50 basis points, and GAAP pre-tax income margin was 14.6%, down 30 basis points. Diluted GAAP earnings per share from continuing operations were $2.31, versus $1.84 a year earlier; the release reports GAAP net income of $2.2 billion. Adjusted (operating, non-GAAP) gross margin was 58.5% and adjusted pre-tax margin was 19.3%, up 70 basis points; adjusted diluted EPS was $2.95. By segment, Software revenue rose 8% to $7.8 billion, Consulting was flat at $5.3 billion, and Infrastructure rose 4% to $3.7 billion, with IBM Z down 20% and Distributed Infrastructure up 31%. Year-to-date free cash flow was $7.8 billion. IBM said it invested $11.4 billion in acquisitions year to date. Full-year guidance: constant-currency revenue growth of 4% to 5% (unchanged), and free cash flow now expected to rise by more than $1 billion year over year (raised). The board declared a regular quarterly dividend of $1.69 per share.