IBM · 10-Q · 2026Q3 · Full report

Consulting Demand And Backlog

INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 49 · Surprise 32 · Contradicted

Consulting revenue was essentially flat in the third quarter but increased 1.5% for the first nine months, with demand centered on application modernization, data and AI transformation, and cybersecurity services. Third-quarter signings declined 3.7% year over year, although clients continued investing in cybersecurity and data-transformation initiatives. Trailing-twelve-month book-to-bill was approximately 1.04, and Consulting backlog was $30.2 billion at September 30, 2026. Nine-month signings increased 3.1%, indicating modest improvement in forward demand despite quarterly volatility.

Key facts

• Book-to-bill ratio for IBM Consulting for the trailing twelve months was approximately 1.04, and backlog was $30.2 billion at September 30, 2026. source
• Consulting signings for the three months ended September 30, 2026 were $5,030 million, a 3.7% decrease versus the prior-year period (2.0% decrease adjusted for currency); total Consulting signings for the nine months ended September 30, 2026 were $15,418 million, a 3.1% increase (3.2% adjusted for currency). source
• Total Consulting revenue for the three months ended September 30, 2026: $5,335 million. source
• Consulting segment profit margin for the three months ended September 30, 2026: 12.2%. source

Impact estimates