IBM International Business Machines (IBM) Q3 FY26 earnings call
IBM delivered a strong Q3 FY26, with accelerated revenue growth across its segments, particularly in software and infrastructure, driven by robust execution and client demand for hybrid cloud and AI solutions. The company raised its full-year free cash flow growth expectation, underscoring confidence in its strategic portfolio and operational discipline, while continuing to invest in key growth areas like AI and Quantum.
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IBM operating KPIs by quarter
| KPI | Mar 2025 Q1 FY25 | Jun 2026 Q2 FY26 | This call Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|
| Annual recurring revenue (ARR) OpenShift | $1.5BAnd OpenShift is now at $1.5 billion ARR, growing about 25%.Source: earnings call transcript | $2.2BOpenShift ARR is now $2.2 billion with strong growth, reflecting demand of our containerization and virtualization products, where we now have about $680 million of contracts signed since early 2024.Source: earnings call transcript | $2.4BOpenShift is now $2.4 billion ARR business, with growth accelerating to more than 30%.Source: earnings call transcript | +9.1% |
| Annual recurring revenue (ARR) Software | $21.7BSoftware's annual recurring revenue grew to $21.7 billion, up 11% since last year.Source: earnings call transcript | $24.6BThis revenue grew nicely in the quarter, and our ARR was $24.6 billion, up 8% since last year.Source: earnings call transcript | $24.9BThis performance was driven by our high-value annual recurring revenue base, which grew 8% to $24.9 billion.Source: earnings call transcript | +1.2% |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.