# IBM Raises Cash Flow Outlook as Software Revenue Grows

IBM reported $17.1 billion in third-quarter revenue and maintained its full-year revenue growth forecast.

By Will Langan | 24X7 News
Published: 2026-10-27T02:09:47.128Z
Updated: 2026-10-27T02:09:47.128Z
Section: Business
Format: News
Canonical: https://24x7news.us/articles/ibm-third-quarter-2026-results-cash-flow-outlook

Launch Catch-Up — Results Announced October 21, 2026

IBM said October 21 that third-quarter revenue increased 5% from a year earlier to $17.1 billion. Net income from continuing operations reached $2.2 billion, with diluted earnings of $2.31 a share.

Software revenue rose 8% to $7.8 billion. Within that business, Red Hat grew 11% and data revenue increased 19%, while automation declined 3%. Consulting revenue was flat at $5.3 billion, and infrastructure revenue increased 4% to $3.7 billion.

The company generated $4 billion in operating cash during the quarter and reported $3 billion in free cash flow, its supplemental cash measure. It paid $1.6 billion in dividends.

IBM maintained its forecast for full-year revenue growth of 4%–5% at constant exchange rates. It raised its free cash flow outlook to an increase of more than $1 billion from the previous year. Those outlook figures are company forecasts, not completed results.

Sources
IBM — October 21 earnings release: https://newsroom.ibm.com/2026-10-21-IBM-RELEASES-THIRD-QUARTER-RESULTS

## Sources
- IBM — October 21, 2026 quarterly results: https://newsroom.ibm.com/2026-10-21-IBM-RELEASES-THIRD-QUARTER-RESULTS