Filing Flows › International Business Machines (IBM) › Q3 2026 › vs Q2 2026
International Business Machines (IBM) Q3 2026 vs Q2 2026 (quarter over quarter)
International Business Machines's revenue fell $59.0M (-0.3%) from $17.2B in Q2 2026 to $17.1B in Q3 2026. The biggest changes: Sales −$137M (-2%); Services +$73.0M (+0.9%); Financing +$6.0M (+3%). Gross margin 56.8% against 57.7% (-0.9 pts).
International Business Machines, Q3 2026: revenue $17.1B (+5% year over year), operating margin 14.5%, net earnings $2.2B, operating cash flow $4.0B. The chart draws each line against Q2 2026, the increases inside each band.
Margins
| Q3 2026 | Q2 2026 | Change | |
|---|---|---|---|
| Gross margin | 56.8% | 57.7% | -0.9 pts |
| Operating margin | 14.5% | 14.4% | +0.1 pts |
| Net margin | 12.8% | 12.6% | +0.2 pts |
| Free cash flow margin | 21.6% | 13.8% | +7.8 pts |
Every line
| Line | Q3 2026 | Q2 2026 | Change | % |
|---|---|---|---|---|
| Sales | $8.9B | $9.0B | −$137M | -2% |
| Services | $8.0B | $7.9B | $73.0M | +0.9% |
| Financing | $192M | $186M | $6.0M | +3% |
| Revenue | $17.1B | $17.2B | −$59.0M | -0.3% |
| Gross profit | $9.7B | $9.9B | −$193M | -2% |
| Cost of revenue | $7.4B | $7.3B | $134M | +2% |
| Operating profit | $2.5B | $2.5B | $9.0M | +0.4% |
| Operating expenses | $7.2B | $7.4B | −$202M | -3% |
| Pre-tax earnings | $2.5B | $2.5B | $9.0M | +0.4% |
| Research & development | $2.4B | $2.3B | $67.0M | +3% |
| SG&A | $4.6B | $5.0B | −$361M | -7% |
| Other operating costs | $228M | $136M | $92.0M | +68% |
| Net earnings | $2.2B | $2.2B | $25.0M | +1% |
| Income tax | $298M | $313M | −$15.0M | -5% |
| Depreciation & amortization | $1.4B | $1.3B | $29.0M | +2% |
| Share-based compensation | $535M | $498M | $37.0M | +7% |
| Working capital & other | $78.0M | $1.4B | −$1.3B | -94% |
| Operating cash flow | $4.0B | $2.6B | $1.4B | +55% |
| Free cash flow (OCF − capex) | $3.7B | $2.4B | $1.3B | +56% |
| Capital expenditures | $332M | $229M | $103M | +45% |
Questions
How much did International Business Machines's revenue grow quarter over quarter in Q3 2026?
International Business Machines's revenue fell $59.0M (-0.3%) from $17.2B in Q2 2026 to $17.1B in Q3 2026.
What drove International Business Machines's revenue change in Q3 2026?
Sales −$137M (-2%); Services +$73.0M (+0.9%); Financing +$6.0M (+3%).