IBM · News · 20261022N

Revenue Performance and Mix

INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 37 · Surprise 32 · Contradicted

IBM reported third-quarter 2026 revenue of $17.1 billion, up 4.7% year over year and 6% at constant currency. Software revenue growth accelerated 9% year over year at constant currency, with Red Hat up 11%, Data up 20%, and Transaction Processing up 10%. Infrastructure revenue increased 4%, while distributed infrastructure surged 32% and IBM Z revenue declined against a difficult comparison. Software annual recurring revenue reached $24.9 billion, up 8% year over year.

Key facts

• Software annual recurring revenue (ARR) reached $24.9 billion, up 8% year over year. source
• Q3 2026 revenue: $17.1 billion, increasing 4.7% year on year. source
• Distributed infrastructure surged 32%. source
• IBM reported that it closed two-thirds of the deals that slipped in the previous quarter, helping its Q3 rebound (reported by Morgan Stanley commentary). source
• IBM reported that at constant currency total revenue growth for Q3 2026 was 6%. source
• IBM shares have gained 11.1% in the past three months as of October 22, 2026. source

Impact estimates