IBM · News · 20261022N

Software Product Demand

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

IBM’s Software business accelerated in Q3 2026, with constant-currency growth of 9%. Red Hat revenue increased 11%, Data revenue rose 20%, and Transaction Processing rebounded 10% as previously delayed software deals closed. Annual recurring revenue reached $24.9 billion, up 8% year over year, indicating continued demand for recurring software offerings and enterprise modernization. Consulting growth remained modest, creating a mixed demand profile across IBM’s portfolio.

Key facts

• Software revenue grew 9% year over year at constant currency in Q3 2026; Red Hat grew 11%, Data grew 20%, and Transaction Processing rebounded 10%. source
• Transaction processing grew 10% and was driven by mainframe software in Q3 2026. source
• IBM said software growth accelerated 9% and transaction processing grew 10%, contributing to Q3 upside and improved execution. source