IBM exceeded analyst expectations during the third quarter of 2026, a performance attributed to the growth of its software division and the recovery of postponed contracts. Furthermore, the company raised its annual growth forecast in the area and improved its free cash flow outlook. CEO Arvind Krishna highlighted the increasing use of the so-called 'Super Intelligence' by corporate clients.
In the period between July and September, the company generated revenue of US$ 17.1 billion, equivalent to approximately R$ 92.3 billion. This figure represents an approximate increase of 5% compared to the same period in 2025. The result surpassed the projection of US$ 16.82 billion (R$ 90.8 billion) set by analysts consulted by LSEG.
In terms of profitability, adjusted earnings per share reached US$ 2.95 (approximately R$ 15.90), exceeding the estimate of US$ 2.86 (R$ 15.44). Concurrently, net income grew from US$ 1.74 billion (R$ 9.4 billion) to US$ 2.19 billion (R$ 11.8 billion) compared to the previous year. After the release of these figures, IBM shares rose by about 4% in after-hours trading.
The consulting division reported revenue of US$ 5.34 billion (about R$ 28.8 billion), remaining practically stable compared to the third quarter of 2025 and slightly below analyst expectations. However, artificial intelligence (AI) already constitutes a significant portion of this area's business. During a conference call with investors, Kavanaugh stated that technology-related projects accounted for about 30% of consulting revenue in the quarter and 35% of the contract portfolio.
The executive also mentioned that IBM is redirecting productivity gains to digital assets with the aim of accelerating the migration to a service model more aligned with software, aiming to capitalize on the growing demand for AI solutions in businesses.
As for the infrastructure division, it achieved US$ 3.7 billion (about R$ 20 billion) in revenue, marking a 4% increase. The 31% growth in distributed infrastructure helped compensate for a 20% reduction in business related to IBM Z mainframes.
The company maintained its annual revenue growth projection between 4% and 5%, assuming stable exchange rates. The most notable change in financial outlook was the revision of the free cash flow estimate. IBM now forecasts that this indicator will grow by more than US$ 1 billion (about R$ 5.4 billion) in 2026, compared to the previous year, unlike the initial forecast of an advance of approximately US$ 1 billion in July.
In the third quarter, free cash flow totaled US$ 3 billion (about R$ 16.2 billion), representing an increase of US$ 700 million (R$ 3.8 billion) compared to the same period last year. Meanwhile, the adjusted gross margin stood at 58.5%, falling short of the 59.1% predicted by StreetAccount analysts.
Commenting on the results, Krishna stated that IBM's customers are employing 'Super Intelligence' to transform entire operations, rather than using technology just to solve specific issues. He said: 'Now, our customers are implementing 'Super Intelligence' in ways that transform entire operating models, instead of simply addressing isolated or novel problems.'
This statement corroborates IBM's strategy of expanding AI presence in software, infrastructure, and enterprise services. In the context presented by the company, the term refers to how customers apply these technologies in their businesses, and not to an announcement of developing general or autonomous superintelligence.
Additionally, during the quarter, the company announced an agreement to acquire HRL Laboratories, a former research division of Hughes Aircraft, associated with Boeing and General Motors (GM). The amount of this transaction was not disclosed.
As the regular trading session closed on Wednesday, IBM shares fell by approximately 15% over the year, while the S&P 500 index advanced by about 13% over the same period.
