IBM reported third-quarter 2026 results on October 21, with revenue of $17.1 billion and adjusted EPS of $2.95, both above estimates. Software grew 8% against a 6% street estimate, and two-thirds of the mainframe deals that slipped from the second quarter closed within 90 days. IBM raised its free cash flow guidance to more than a billion from about a billion while holding 4% to 5% revenue growth for fiscal 2026. Red Hat recovered from last quarter's stumble, and CEO Arvind Krishna argued the quantum business is not priced into the stock.