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IBM RELEASES THIRD-QUARTER RESULTS

IBM said software revenue rose 9% and free cash flow increased $600 million as Lightwell demand quickly built a $700 million pipeline.

  • On Wednesday, October 21, 2026, IBM announced 6% revenue growth during its third-quarter earnings call, driven by a 9% surge in software sales.
  • Transaction Processing rebounded with 10% growth, validating IBM's view that earlier segment softness reflected deal timing rather than underlying customer demand.
  • Through the first nine months of the year, IBM generated about $8 billion in free cash flow, up about $600 million year over year, driven by Adjusted EBITDA growth.
  • Arvind Krishna, Chairman, President, and Chief Executive Officer, raised the year-over-year free cash flow growth expectation to more than $1 billion while maintaining a 4%-5% revenue growth target for 2026.
  • Senior Vice President and Chief Financial Officer Jim Kavanaugh reported that the new security offering Lightwell has quickly built a sales pipeline approaching $700 million.
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thecerbatgem.com broke the news on Wednesday, October 21, 2026.
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