IBM beats third-quarter revenue and profit forecasts — CNBC

IBM exceeded analysts' expectations for revenue and adjusted profit in the third quarter and raised its full-year 2026 free cash flow forecast. Shares of the technology company rose in after-hours trading following the release of its results, CNBC reports.

Quarterly results

IBM's adjusted earnings were $2.95 per share, compared with the $2.86 expected under the LSEG consensus forecast. Revenue reached $17.1 billion versus the projected $16.82 billion. On an annual basis, the company's revenue grew by approximately 5%.

IBM's net income increased to $2.19 billion, or $2.30 per share, compared with $1.74 billion, or $1.84 per share, a year earlier. The adjusted earnings figure excludes acquisition-related adjustments.

Outlook and business segments

The company said it expects free cash flow to increase by more than $1 billion for the full year. IBM also maintained its forecast for 2026 revenue growth of 4–5% at constant currency.

More current news is available on the UA.News Telegram channel Telegram.

Revenue from the software business increased by 8% to $7.8 billion, exceeding StreetAccount's expectation of $7.66 billion. Revenue in the infrastructure segment rose by 4% to $3.7 billion, while the consulting business generated $5.34 billion, remaining at last year's level.

Artificial intelligence and margin

IBM Chief Executive Officer Arvind Krishna said the company's clients are using “Super Intelligence” to transform operating models, rather than only to solve narrow or new tasks. At the same time, IBM's adjusted gross margin was 58.5%, below StreetAccount's forecast of 59.1%.

During the quarter, IBM also announced a deal to acquire HRL Laboratories, which was owned by Boeing and General Motors and was previously known as Hughes Aircraft's research division. The value of the deal was not disclosed.