IBM Lifts 2026 Software Growth Floor to 7%-8% as Delayed Deals Close; Q3 Software Revenue Rises 8%

IBM raised its 2026 full-year software revenue growth forecast to 7%-8% from 6%-8% at constant currency after large software transactions delayed from the second quarter closed in the third quarter, the company said on October 21. About two-thirds of the postponed deals were completed in the third quarter, lifting software revenue 8% year over year to $7.804 billion, or roughly 9% at constant currency. Software segment profit reached $2.734 billion, with margin expanding to 35% from 32.9% a year earlier. Transaction processing software grew 10% at constant currency on higher mainframe volumes, but CEO Arvind Krishna cautioned that double-digit growth should not be treated as normal and that fourth-quarter growth may slow. Red Hat hybrid cloud rose 11%, data business gained 20% and automation fell 3%. Total third-quarter revenue was $17.103 billion, up 4.7%, with adjusted earnings of $2.95 per share, up 11%. IBM kept its full-year constant-currency revenue growth outlook at 4%-5% and raised its free cash flow forecast, expecting an increase of more than $1 billion versus 2025.