IBM Q3 Revenue Rises 5% to $17.1 Billion; Raises Full-Year Cash Flow Guidance

IBM reported $17.1 billion in revenue for its third quarter of fiscal year 2026, up approximately 5% year-on-year, with adjusted earnings per share of $2.95—both key metrics exceeding analyst expectations. The company also raised its full-year guidance: software revenue growth is now projected at roughly 7%–8%, and free cash flow growth target has been increased to over $1 billion. Software and mainframe deals previously delayed due to customers shifting spending priorities toward data center infrastructure are now progressing into the contracting phase. Through the first nine months of the fiscal year, IBM’s cumulative free cash flow reached $8 billion—the highest on record for this period. Following the earnings release, IBM’s stock fell 4.95% in after-hours trading to $239.02.