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International Business Machines (IBM) earnings and revenue breakdown

Latest: Q3 2026 · 10-Q filed Oct 22, 2026 · International Business Machines (IBM) Q3 2026 earnings results →

Q3 2026 Revenue up 5% year over year to $17.1B · 13¢ of every $1 of revenue kept as net profit · operating margin 14.5%

International Business Machines made $17.1B in Q3 2026 (+5% Y/Y): Sales $8.9B, Services $8.0B, Financing $192M. Operating margin 14.5%, net earnings $2.2B. See where every dollar goes — costs, profit and cash — as a Sankey from the 10-Q filed Oct 22, 2026.

Revenue$17.1B
Year over year+5%
Operating margin14.5%
Net earnings$2.2B
Operating cash flow$4.0B

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International Business Machines Q3 2026 revenue breakdown: Sankey diagram of revenue (Sales, Services, Financing), costs, profit and cash flow
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What changed this quarter

Revenue was $17.1B in Q3 2026, up 5% year over year and roughly flat from the previous quarter. Sales was the largest line at 52% of revenue. Sales added $0.51B year over year (up 6%), 65% of the total change. Financing declined 4%.

Gross margin was 56.8%, down 0.5 points from Q3 2025. Operating profit was $2.5B, a 14.5% margin (down 0.3 points year over year). Of the extra revenue versus Q3 2025, 8% reached operating profit, below the 15% margin then. Operating expenses grew 4% against revenue growth of 5%. The fastest-growing cost line was Other operating costs (+128%). Net earnings were $2.2B, up 26% year over year. The effective tax rate was 12.0%.

Operating cash flow was $4.0B (up 31% year over year), 184% of net earnings. Non-cash charges added back $1.4B of depreciation and amortization and $0.54B of share-based compensation. Capital expenditures of $0.33B left free cash flow of $3.7B.

Quarterly history

International Business Machines revenue by quarterInternational Business Machines revenue by quarter$14.5BQ1 2025$17.0BQ2 2025$16.3BQ3 2025$19.7BQ4 2025$15.9BQ1 2026$17.2BQ2 2026$17.1BQ3 2026
International Business Machines net earnings by quarterInternational Business Machines net earnings by quarter$1.1BQ1 2025$2.2BQ2 2025$1.7BQ3 2025$5.6BQ4 2025$1.2BQ1 2026$2.2BQ2 2026$2.2BQ3 2026
QuarterFormFiledRevenueY/YOp. marginNet earningsOp. cash flow
Q3 202610-QOct 22, 2026$17.1B+5%14.5%$2.2B$4.0B
Q2 202610-QJul 23, 2026$17.2B+1%14.4%$2.2B$2.6B
Q1 202610-QApr 23, 2026$15.9B+10%8.7%$1.2B$5.2B
Q4 202510-KFeb 24, 2026$19.7B+12%21.2%$5.6B$4.0B
Q3 202510-QOct 23, 2025$16.3B+9%14.9%$1.7B$3.1B
Q2 202510-QJul 24, 2025$17.0B+8%15.3%$2.2B$1.7B
Q1 202510-QApr 24, 2025$14.5B+0.5%8.0%$1.1B$4.4B

Charts

International Business Machines: revenue growth, year over year and quarter over quarterInternational Business Machines: revenue growth, year over year and quarter over quarterY/YQ/Q+0%Q1 2025+8%+17%Q2 2025+9%-4%Q3 2025+12%+21%Q4 2025+10%-19%Q1 2026+1%+8%Q2 2026+5%0%Q3 2026
Latest (Q3 2026): Y/Y +5%, Q/Q 0%.
International Business Machines: where the cash came from (+) and went (−), TTM to Q3 2026International Business Machines: where the cash came from (+) and went (−), TTM to Q3 2026Operating cash flow$15.8BAcquisitions−$11.8BDividends−$6.3BCash drawn (+) / kept (−)$2.3BCapital spending−$1.2BTaxes on employees’ shares−$984MShares issued$737MOther investing$715MOther financing$428MNet borrowing (+) / repaid (−)$347MExchange rates−$220MAsset & business sales$93.0M
From the cash-flow statement as filed (SEC XBRL). Cash is fungible: the bars do not say which dollar paid for what.
International Business Machines: profit against cash, quarter by quarterInternational Business Machines: profit against cash, quarter by quarterNet incomeOperating cash flow$2.9B$4.3BQ4 2024$1.1B$4.4BQ1 2025$2.2B$1.7BQ2 2025$1.7B$3.1BQ3 2025$5.6B$4.0BQ4 2025$1.2B$5.2BQ1 2026$2.2B$2.6BQ2 2026$2.2B$4.0BQ3 2026
Latest (Q3 2026): Net income $2.2B, Operating cash flow $4.0B.
International Business Machines: diluted shares by fiscal yearInternational Business Machines: diluted shares by fiscal year897MFY2020905MFY2021912MFY2022922MFY2023937MFY2024949MFY2025
+5.8% since FY2020: more shares outstanding (issuance, stock pay).
International Business Machines: long-term debt falling due (FY2025)International Business Machines: long-term debt falling due (FY2025)$6.4B2026$6.8B2027$5.2B2028$5.1B2029$4.5B2030$34.3BLater
Cash $13.6B, short-term investments —, long-term debt $61.3B at 2025-12-31.

Interactive views

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💵Where each $1 goesinteractive

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🌏Named in Asian annual reportsinteractive

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🔄Rotation against the market and its industry (RRG)interactive

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🔍Earnings qualityinteractive

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⚖️Fair value by methodinteractive

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🔭Outlook & guidanceinteractive

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📈Investments: gains and what it boughtinteractive

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🏭Its industry’s money flow (input-output)interactive

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Customers and suppliers named in filings

Sells to

About International Business Machines

International Business Machines Corporation (IBM or the company) was incorporated in the State of New York on June 16, 1911, as the Computing-Tabulating-Recording Co. (C-T-R), a consolidation of the Computing Scale Co. of America, the Tabulating Machine Co. and The International Time Recording Co. of New York. Since that time, IBM has focused on the intersection of business insight and technological innovation, and its operations and aims have been international in nature. This was signaled over 100 years ago, in 1924, when C-T-R changed its name to International Business Machines Corporation. And it continues today—we create sustained value for clients by helping them leverage the power of hybrid cloud and artificial intelligence (AI).

In its own words, from its 10-K, filed Feb 24, 2026.

International Business Machines against its Computer & office Equipment peers

The largest companies of the same SEC industry, each at its latest quarter. Revenue growth: +5% against the peers' median +12%. Operating margin: 14.5% against the peers' median 11.4%.

CompanyQuarterRevenueY/YOp. margin
IBM International Business MachinesQ3 2026$17.1B+5%14.5%
HPQ HPQ3 FY26$15.7B+12%5.7%
HPE Hewlett Packard EnterpriseQ3 FY26$12.2B+34%11.4%

Source: International Business Machines 10-Q on SEC EDGAR · CIK 51143 · Computer & office Equipment

13F: who owns IBM and who is buying

Largest holders of IBM (13F)Largest holders of IBM (13F)Vanguard Group$28.8BBlackRock$21.6BVanguard Capital Management LLC$17.3BState Street$15.8BVanguard Portfolio Management LLC$8.0BGeode Capital Management, LLC$6.6BMorgan Stanley$4.9BCapital World Investors$4.6BBank of America$4.2BNorthern Trust$2.9B
Funds' net buying of IBM by quarter (13F)Funds' net buying of IBM by quarter (13F)−$177M2024-09−$217M2024-12$1.1B2025-03$577M2025-06$29.5M2025-09$4.6B2025-12−$942M2026-03$4.7B2026-06
Value of shares 13F filers added minus the value they sold, each quarter (quarters with most filings in).

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