IBM reported third-quarter 2026 revenue of $17.103 billion, compared with $16.331 billion in the prior-year quarter. Net income was $2.190 billion, versus $1.744 billion, and diluted earnings per share were $2.30, versus $1.84. For the nine months ended September 30, 2026, revenue was $50.182 billion and net income was $5.571 billion.
Cash from operating activities for the nine months ended September 30, 2026 was $11.791 billion, compared with $9.153 billion a year earlier. IBM completed four acquisitions across Software, Infrastructure and Consulting during that period, at an aggregate total purchase price of $12.6 billion; purchase price consideration was paid primarily in cash.
At September 30, 2026, remaining performance obligations related to customer contracts were approximately $69 billion. Approximately 70 percent was expected to be recognized as revenue in the subsequent two years and approximately 27 percent in the subsequent three to five years, with the balance thereafter. Cash and cash equivalents were $9.233 billion, and long-term debt was $56.804 billion.
International Business Machines Corporation (IBM) reported third-quarter 2026 revenue of $17.1 billion, up 5% year over year (6% at constant currency). GAAP net income was $2.190 billion versus $1.744 billion a year earlier, and diluted earnings per share from continuing operations were $2.31, up 26%. Operating (non-GAAP) diluted earnings per share were $2.95, up 11%. Software revenue rose 8%, Infrastructure 4%, Consulting was flat and Financing declined 4%. GAAP gross profit margin was 56.8%, down 50 basis points; operating (non-GAAP) gross profit margin was 58.5%, down 20 basis points.
Third-quarter net cash from operating activities was $4.0 billion, up $0.9 billion year over year, and free cash flow was $3.0 billion, up $0.7 billion. IBM returned $1.6 billion in dividends and approved a regular quarterly dividend of $1.69 per common share. For full-year 2026, it expects constant-currency revenue growth of 4% to 5% and now expects free cash flow to increase by more than $1 billion year over year. At September 30, 2026, cash, restricted cash and marketable securities totaled $11.1 billion, while debt totaled $63.8 billion, including $12.7 billion of IBM Financing debt.
IBM director Ramon Laguarta deferred fees into 415 Promised Fee Shares on September 30, 2026, reported at $219.93 per share. His reported Promised Fee Share balance following the transaction was 869. Under the IBM Board of Directors Deferred Compensation and Equity Award Plan, distributions are deferred until retirement and paid in IBM common stock or cash.
IBM director Alex Gorsky acquired 489 Promised Fee Shares on September 30, 2026, under the IBM Board of Directors Deferred Compensation and Equity Award Plan. The shares are deferred until retirement, when they are distributed in common stock or cash. His reported position after the acquisition was 35,343 Promised Fee Shares.
International Business Machines Corp. (IBM) director Michelle J. Howard acquired 291 promised fee shares on September 30, 2026, through deferral of fees under the IBM Board of Directors Deferred Compensation and Equity Award Plan. Her reported balance after the acquisition was 17,050 promised fee shares. Distribution is deferred until retirement, when the shares are paid in common stock or cash.
International Business Machines Corp. director Andrew N. Liveris acquired 444 Promised Fee Shares on September 30, 2026, under the IBM Board of Directors Deferred Compensation and Equity Award Plan. The transaction lists a price of $219.93 per share. The deferred fees are distributed after retirement in common stock or cash; following the acquisition, his reported Promised Fee Share holdings were 45,262.
IBM director Frederick William McNabb III acquired 415 Promised Fee Shares on September 30, 2026. The transaction reports a price of $219.93 per share, and his reported post-transaction position was 17,053 Promised Fee Shares. Distribution of these shares under the IBM Board of Directors Deferred Compensation and Equity Award Plan is deferred until retirement.
International Business Machines Corp. director Michael Miebach acquired 415 Promised Fee Shares on September 30, 2026, under the IBM Board of Directors Deferred Compensation and Equity Award Plan. His reported Promised Fee Share position after the acquisition was 4,724 shares. The award was reported at $219.93 per share.
IBM director Martha E. Pollack acquired 268 Promised Fee Shares on September 30, 2026, under the IBM Board of Directors Deferred Compensation and Equity Award Plan. The reported per-share amount was $219.93, and her reported direct position after the transaction was 17,899 Promised Fee Shares. Distribution is deferred until retirement; the shares are paid out after retirement in IBM common stock or cash.