IBM Q3 FY2026: revenue up 5.0% to $17.10 billion, non-GAAP EPS beats
IBM beat the operating EPS consensus: $2.95 against $2.8866 expected, on revenue of $17.10 billion, up 5.0%. The catch is quality. Pre-tax income rose only 3.0% while net income rose 26.0%, because the effective tax rate fell to 11.9% from 28.2%. Treat software growth and free cash flow as the durable part, and the tax benefit as the one-off.
1 · Expected vs. Actual
Free preview belowOperating EPS of $2.95 beat the $2.8866 consensus by roughly $0.06, while GAAP EPS was $2.30. The $0.65 gap between the two is mostly acquisition-related amortization and charges. GAAP net income of $2.19 billion rose 26.0% on pre-tax income of $2.50 billion that rose just 3.0%, with the lower tax rate doing most of the work.
Revenue of $17.10 billion rose 5.0% from $16.33 billion a year ago, and 6.0% at constant currency. Software carried the quarter at $7.80 billion, up 8.0%, while Consulting was flat at $5.34 billion and Infrastructure grew 4.0% to $3.71 billion. No revenue estimate was supplied, so the beat call rests entirely on earnings per share.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-10-23
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