IBM Beats Q3 Estimates With $17.10 Billion Revenue as Shares Rise
Updated
Updated · CNBC · Oct 21
IBM Beats Q3 Estimates With $17.10 Billion Revenue as Shares Rise
3 articles · Updated · CNBC · Oct 21
Summary
$2.95 in adjusted EPS and $17.10 billion in revenue beat LSEG forecasts of $2.86 and $16.82 billion, sending IBM shares higher after hours.
Revenue rose 5% from a year earlier and net income climbed to $2.19 billion from $1.74 billion, with software up 8% to $7.80 billion and infrastructure up 4% to $3.70 billion.
Consulting was the weak spot at $5.34 billion, flat year over year and slightly below expectations, while adjusted gross margin of 58.5% also missed the 59.1% consensus.
IBM kept its 2026 constant-currency revenue growth outlook at 4% to 5% and slightly raised its free-cash-flow view to growth of more than $1 billion.
The results offer relief after IBM stock had fallen 15% this year through Wednesday's close, lagging the S&P 500's 13% gain.
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