IBM · 10-Q · 2026Q3 · Full report

Infrastructure Demand And Transition

INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 54 · Surprise 40

Infrastructure revenue increased 4.2% in the third quarter, led by 8.3% growth in Hybrid Infrastructure and a 31.3% increase in Distributed Infrastructure. Storage and Power benefited from client modernization, data growth and AI-at-scale requirements, with both businesses delivering double-digit growth for the first nine months. IBM Z revenue declined 19.6% in the quarter because of product-cycle dynamics following the z17 launch in the second quarter of 2025. Management described z17 as its strongest program on record, highlighting security, reliability, scalability and economics as competitive differentiators.

Key facts

• Distributed Infrastructure revenue increased 31.3% year to year for the three months ended September 30, 2026. source
• Total Infrastructure revenue for the three months ended September 30, 2026: $3,707 million. source
• IBM introduced a smaller LinuxONE system in July 2026. source
• IBM Z revenue decreased 19.6% year to year for the three months ended September 30, 2026. source
• Infrastructure segment profit margin for the three months ended September 30, 2026: 19.3%. source