IBM dips even as software and infrastructure propel Q3 revenue past estimate

What happened: IBM reported third-quarter fiscal 2026 results with revenue and adjusted EPS above consensus, but shares fell 6% in Thursday premarket trading. Key numbers: Adjusted EPS $2.95 vs $2.87 estimate. GAAP EPS $2.30 vs $2.45 estimate. Revenue $17.1B, up 5% year over year, vs $16.84B estimate. Why it matters: Analysts cited Red Hat data services and hybrid cloud, plus cybersecurity in consulting, as growth drivers. IBM expects full-year constant currency revenue growth of four to five percent and free cash flow up more than $1 billion year over year. Market: +3.9% today ($251.46), -12.6% YTD, 1.6x vol — as of 10:45 UTC Verified: Q3_2026 (Oct 21) EPS $2.95 vs $2.87 est, +2.7% beat; next print ~Jan 20

IBM reported third-quarter fiscal 2026 results with revenue and adjusted EPS above consensus, but shares fell 6% in Thursday premarket trading.

Analysts cited Red Hat data services and hybrid cloud, plus cybersecurity in consulting, as growth drivers. IBM expects full-year constant currency revenue growth of four to five percent and free cash flow up more than $1 billion year over year. Market: +3.9% today ($251.46), -12.6% YTD, 1.6x vol — as of 10:45 UTC Verified: Q3_2026 (Oct 21) EPS $2.95 vs $2.87 est, +2.7% beat; next print ~Jan 20