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<h2 id="b-tldr-b">TLDR</h2>
<ul>
 <li style="font-weight: 400">IBM shares surged 3.94% to $251.46 after strong third-quarter earnings data.</li>
 <li style="font-weight: 400">IBM’s revenue reached $17.1 billion as software sales jumped 8% year over year.</li>
 <li style="font-weight: 400">IBM’s net income rose 26% to $2.2 billion, while operating EPS climbed 11%.</li>
 <li style="font-weight: 400">Free cash flow hit $3.0 billion, up $700 million from the year-ago quarter.</li>
 <li style="font-weight: 400">IBM raised its full-year cash flow target while keeping revenue guidance intact.</li>
</ul>
IBM shares surged 3.94% to $251.46 on Wednesday as the company reported higher third-quarter revenue and profit. Revenue reached $17.1 billion, rising 5%, while net income jumped 26% to $2.2 billion. Shares gained 1.41% to $255.00 after hours, despite retreating from a post-earnings spike near $270.
<a href="https://knockoutstocks.com/stock/IBM" rel="noopener noreferrer nofollow"> <img src="https://knockoutstocks.com/api/stocks/IBM/embed" alt="IBM Stock Card"> </a>
<a href="https://knockoutstocks.com/stock/IBM" rel="noopener noreferrer nofollow">International Business Machines Corporation, IBM </a>
<h2 id="b-software-growth-lifts-ibm-s-quarterly-revenue-b">Software Growth Lifts IBM’s Quarterly Revenue</h2>
<a href="https://blockonomi.com/ibm-ibm-stock-rebounds-as-darpa-advances-ibm-to-quantum-testing-stage/" rel="noopener noreferrer nofollow">IBM</a> reported 6% revenue growth at constant currency, supported by gains in software and infrastructure. Software generated $7.8 billion, an 8% increase from the same quarter last year. Red Hat revenue rose 11%, and data revenue grew 19%.
Transaction processing sales increased 9%, while automation revenue fell 3% during the quarter. Consulting generated $5.3 billion, matching last year’s revenue, although constant currency sales increased 2%. Strategy and technology consulting grew 2%, while intelligent operations revenue declined 2%.
Infrastructure revenue climbed 4% to $3.7 billion, helped by 31% growth in distributed infrastructure. However, IBM Z revenue dropped 20%, and infrastructure support sales declined 3%. Financing contributed about $200 million in revenue, down 4% from last year.
<h2 id="b-earnings-rise-as-ibm-expands-cash-flow-b">Earnings Rise as IBM Expands Cash Flow</h2>
IBM reported GAAP diluted earnings of $2.31 per share, a 26% increase. Operating earnings reached $2.95 per share, up 11%, while operating net income grew 12% to $2.8 billion. However, the GAAP gross profit margin slipped 50 basis points to 56.8%.
Operating gross margin declined 20 basis points to 58.5%, despite stronger earnings. In contrast, operating pretax margin improved 70 basis points to 19.3%. Operating pretax income rose 9% to $3.3 billion as <a href="https://blockonomi.com/accentures-earnings-boost-lifts-international-business-machines-ibm-stock-2-6-in-best-day-since-september/" rel="noopener noreferrer nofollow">IBM</a> continued productivity efforts.
Operating cash flow totaled $4.0 billion, increasing $900 million from a year earlier. Free cash flow reached $3.0 billion, improving by $700 million from last year. Through September, IBM generated $11.8 billion in operating cash and $7.8 billion in free cash flow.
<h2 id="b-ibm-maintains-revenue-outlook-and-raises-cash-target-b">IBM Maintains Revenue Outlook and Raises Cash Target</h2>
IBM maintained its 2026 forecast for constant currency revenue growth between 4% and 5%. However, management raised its free cash flow outlook to growth exceeding $1 billion from 2025. The company expects exchange rates to have a neutral effect on annual revenue growth.
<a href="https://blockonomi.com/accentures-earnings-boost-lifts-international-business-machines-ibm-stock-2-6-in-best-day-since-september/" rel="noopener noreferrer nofollow">IBM</a> held $11.1 billion in cash, restricted cash and marketable securities at quarter-end. Meanwhile, total debt reached $63.8 billion after IBM invested $11.4 billion in acquisitions during 2026. Cash holdings declined $3.4 billion from the end of 2025.
The board declared a quarterly dividend of $1.69 per common share. Shareholders of record on November 10 will receive the payment on December 10, 2026. IBM paid $1.6 billion in third-quarter dividends while funding acquisitions and business needs.
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The post <a href="https://blockonomi.com/ibm-ibm-stock-surges-3-94-as-q3-revenue-hits-17-1-billion-and-profits-jump-26/" rel="noopener noreferrer nofollow">IBM (IBM) Stock: Surges 3.94% as Q3 Revenue Hits $17.1 Billion and Profits Jump 26%</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

IBM (IBM) Stock: Surges 3.94% as Q3 Revenue Hits $17.1 Billion and Profits Jump 26%

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