Filing Flows › International Business Machines (IBM) › Q3 2026 › vs Q3 2025
International Business Machines (IBM) Q3 2026 vs Q3 2025 (year over year)
International Business Machines's revenue rose $772M (+5%) from $16.3B in Q3 2025 to $17.1B in Q3 2026. The biggest changes: Sales +$505M (+6%); Services +$276M (+4%); Financing −$8.0M (-4%). Gross margin 56.8% against 57.3% (-0.5 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 Q3 2025, the increases inside each band.
Margins
| Q3 2026 | Q3 2025 | Change | |
|---|---|---|---|
| Gross margin | 56.8% | 57.3% | -0.5 pts |
| Operating margin | 14.5% | 14.9% | -0.3 pts |
| Net margin | 12.8% | 10.7% | +2.1 pts |
| Free cash flow margin | 21.6% | 17.3% | +4.3 pts |
Every line
| Line | Q3 2026 | Q3 2025 | Change | % |
|---|---|---|---|---|
| Sales | $8.9B | $8.4B | $505M | +6% |
| Services | $8.0B | $7.7B | $276M | +4% |
| Financing | $192M | $200M | −$8.0M | -4% |
| Revenue | $17.1B | $16.3B | $772M | +5% |
| Gross profit | $9.7B | $9.4B | $354M | +4% |
| Cost of revenue | $7.4B | $7.0B | $418M | +6% |
| Operating profit | $2.5B | $2.4B | $58.0M | +2% |
| Operating expenses | $7.2B | $6.9B | $296M | +4% |
| Pre-tax earnings | $2.5B | $2.4B | $58.0M | +2% |
| Research & development | $2.4B | $2.1B | $296M | +14% |
| SG&A | $4.6B | $4.7B | −$128M | -3% |
| Other operating costs | $228M | $100M | $128M | +128% |
| Net earnings | $2.2B | $1.7B | $446M | +26% |
| Income tax | $298M | $686M | −$388M | -57% |
| Depreciation & amortization | $1.4B | $1.3B | $95.0M | +7% |
| Share-based compensation | $535M | $443M | $92.0M | +21% |
| Working capital & other | $78.0M | $388M | −$310M | -80% |
| Operating cash flow | $4.0B | $3.1B | $943M | +31% |
| Free cash flow (OCF − capex) | $3.7B | $2.8B | $866M | +31% |
| Capital expenditures | $332M | $255M | $77.0M | +30% |
Questions
How much did International Business Machines's revenue grow year over year in Q3 2026?
International Business Machines's revenue rose $772M (+5%) from $16.3B in Q3 2025 to $17.1B in Q3 2026.
What drove International Business Machines's revenue change in Q3 2026?
Sales +$505M (+6%); Services +$276M (+4%); Financing −$8.0M (-4%).