By Daniel Sparks
Publication Date: 2026-10-19 10:21:00
Shares of International Business Machines (IBM -0.85%) trade around $234 as I write, two days before the company posts third-quarter results on Wednesday, Oct. 21. The stock has shed about 21% of its value so far in 2026, and it is 29% below the all-time high of $329.23 it closed at on June 2.
The hardest hit was on July 14, when IBM said second-quarter revenue had come in below its own expectations. Shares sank 25% that day.
What bothers me most about that quarter is software. IBM’s software revenue grew 5% year over year. But without acquisitions, it was flat, according to CFO James Kavanaugh.
With the stock this far below its high and a dividend yielding almost 3%, is IBM worth buying before Wednesday’s report?
Image source: The Motley Fool.
Software growth slowed sharply
Software is IBM’s biggest segment by both revenue and profit. It pulled in $7.8 billion in second-quarter sales, and its segment profit climbed 9% year over year to $2.5 billion. But its revenue growth has…
