IBM · 10-Q · 2026Q3 · Full report
Hybrid Cloud and Data Growth
INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 60 · Surprise 40 · In source text
IBM's Hybrid Cloud offering generated $6.0 billion of revenue in the first nine months of 2026, up 11.5% year over year, while Data revenue reached $5.0 billion, up 19.1%. In the third quarter, Hybrid Cloud revenue increased 10.6% to $2.1 billion and Data revenue increased 19.1% to $1.7 billion. The growth indicates continued customer demand for hybrid-cloud capabilities and data-related software within IBM's Software portfolio.
Key facts
- Across Software, annual recurring revenue (ARR) was $24.9 billion, an increase of approximately $2 billion year to year. source
- OpenShift annual recurring revenue was approximately $2.4 billion. source
- Data revenue for the three months ended September 30, 2026 was $1,738 million, up 19.1% (19.6% adjusted for currency), driven by Confluent. source
- Software revenue for the three months ended September 30, 2026: $7,804 million. source
- Hybrid Cloud (Red Hat) revenue for the three months ended September 30, 2026 was $2,086 million, up 10.6% (11.1% adjusted for currency). source
- Hybrid Cloud revenue for the three months ended September 30, 2026: $2,086 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +11.7% | Across Software, annual recurring revenue (ARR) was $24.9 billion, an increase of approximately $2 billion year to year. |
| revenue | positive | realized | +1.6% | Data revenue for the three months ended September 30, 2026 was $1,738 million, up 19.1% (19.6% adjusted for currency), driven by Confluent. |