IBM's Q3 beat

Business · Heat 1.4 / 10 · 2 shows · 11m airtime

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.

How 2 podcasts covered it

Closing Bell, 2026-10-21 (11:46 to 14:25)
Interviews Krishna on IBM's raised cash flow guide
Reports IBM's third-quarter beat and the raised free cash flow guide, plus an interview with CEO Arvind Krishna on Red Hat's double-digit outlook, quantum valuation and M&A. None of the existing earnings points covers IBM.
New angle: IBM raised its free cash flow guidance to more than a billion from about a billion.
Closing Bell, 2026-10-21 (15:48 to 18:55)
Adds IBM software growth and mainframe closings
Thill returns to IBM's quarter and adds two figures not yet on the record: software growth of 8% against a 6% street estimate, and two-thirds of the lagging mainframe deals closed in Q3. He argues the beat is a cleanup, not a re-rating, and that quantum is not a revenue driver until 2029.
New angle: IBM's software grew 8% versus a 6% street estimate, and two-thirds of lagging mainframe deals closed in Q3.
Bloomberg Tech, 2026-10-22 (17:10 to 22:22)
Walks through IBM's third-quarter beat
Citi's Fatima Bulani walks through IBM's third-quarter print: infrastructure and software reaccelerated, the mainframe looks at least stable, and two thirds of slipped second-quarter transactions were recouped within 90 days. She frames IBM as an AI survivor, with organic software still the investor flashpoint.
New angle: IBM recouped two thirds of its slipped second-quarter transactions within 90 days.