IBM Q3 Revenue Growth Accelerates to About 5% as Cash Flow Outlook Rises

IBM’s third-quarter revenue rose about 5% to $17.1 billion, accelerating from 1% growth in the previous quarter as the company raised its annual software and free cash flow outlook.

Second-quarter revenue was $17.2 billion, up 1% from a year earlier. IBM’s third-quarter adjusted earnings per share were $2.95, above analyst expectations.

IBM raised its full-year software revenue growth guidance to about 7%-8%. It also now expects free cash flow to increase by more than $1 billion year over year, compared with its previous forecast for an increase of about $1 billion. The company’s free cash flow outlook was covered in an earlier update.

Free cash flow totaled $8.0 billion in the first nine months of the year, a record for that period. IBM maintained its 2026 revenue growth outlook of 4%-5% at constant currency, which excludes the effect of exchange-rate movements.