IBM expected to report higher third-quarter profit as recovery takes focus
IBM reports third-quarter results after the Wednesday close. Analysts polled by FactSet expect profit of $2.34 billion and revenue of $16.82 billion.
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what happened
IBM is due to publish its third-quarter results on Wednesday after the market closes. According to analysts polled by FactSet, net income is expected to reach $2.34 billion, up from $1.74 billion a year earlier. Adjusted earnings are forecast at $2.85 per share versus $2.65 a year before, and revenue is expected to rise to $16.82 billion from $16.33 billion.
IBM shares are down about 19% so far this year. The company needs to rebuild investor confidence after a weak second quarter, when a 7% drop in infrastructure revenue was tied to mainframe deals that slipped. CFO Jim Kavanaugh told The Wall Street Journal that roughly a third of those deals had closed by the July report, and investors will watch for updates on the rest.
why it matters
Morgan Stanley analysts see the third-quarter print as neutral to positive, since deals pushed out of the second quarter could land in this period. They warn the fourth-quarter setup is tougher, given a higher revenue bar, a weak macro backdrop and fierce competition in AI software.
market impact
IBM and IT services stocks: results and the fourth-quarter outlook set sentiment for the shares
tags
instruments
sources
- IBM Expected to Post Higher 3Q Profit With Recovery in Focus — Earnings Preview, 20 October 2026 at 19:10 UTC
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