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How International Business Machines (IBM) makes money
International Business Machines (IBM) made $17.1B of revenue in the third quarter 2026 (Q3 2026), +5% from a year earlier. Sales brought in $8.9B (52%); Services brought in $8.0B (47%); Financing brought in $192M (1%). Of every dollar of revenue, 57¢ was left as gross profit, 15¢ was left as operating profit, 13¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Sales | $8.9B | 52.1% | -2% | +6% |
| Services | $8.0B | 46.8% | +0.9% | +4% |
| Financing | $192M | 1.1% | +3% | -4% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $17.1B | 100.0% |
| Cost of revenue | $7.4B | 43.2% |
| Gross profit | $9.7B | 56.8% |
| Operating expenses | $7.2B | 42.2% |
| Operating profit | $2.5B | 14.5% |
| Income tax | $298M | 1.7% |
| Net earnings | $2.2B | 12.8% |
| Operating cash flow | $4.0B | 23.5% |
| Free cash flow | $3.7B | 21.6% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $17.1B | +5% |
| Q2 2026 | $17.2B | +1% |
| Q1 2026 | $15.9B | +10% |
| Q4 2025 | $19.7B | +12% |
| Q3 2025 | $16.3B | +9% |
| Q2 2025 | $17.0B | +8% |
| Q1 2025 | $14.5B | +0.5% |
From International Business Machines' 10-Q filed Oct 22, 2026 (on EDGAR).
Questions
How does International Business Machines make money?
International Business Machines (IBM) made $17.1B of revenue in the third quarter 2026 (Q3 2026), +5% from a year earlier. Sales brought in $8.9B (52%); Services brought in $8.0B (47%); Financing brought in $192M (1%). Of every dollar of revenue, 57¢ was left as gross profit, 15¢ was left as operating profit, 13¢ was left as net earnings.
What is International Business Machines' biggest business?
Sales: $8.9B in the third quarter 2026, 52% of revenue, +6% from a year earlier.
What is International Business Machines' profit margin?
Net earnings were $2.2B, 12.8% of revenue, in the third quarter 2026; the operating margin was 14.5%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.