By Supriyo Bose
Publication Date: 2026-10-22 14:06:00
International Business Machines Corporation IBM shares have gained 11.1% in the past three months, putting the focus on whether better operating execution can support further upside.
The third quarter strengthened that case, with faster Software growth, improved transaction execution and wider operating margins. Still, uneven enterprise spending, mainframe cycles and a valuation above IBM’s historical median keep the setup balanced.
IBM’s Three-Month Gain Meets Stronger Execution
IBM’s third-quarter revenue growth accelerated to 6% at constant currency, while operating earnings per share increased 11% year over year. Operating pretax margin expanded 70 basis points, reflecting productivity actions and better execution across the portfolio.
The quarter also showed improvement in areas that had raised timing concerns earlier in the year. Transaction Processing grew 10% and Infrastructure advanced 5% at constant currency. Yet mainframe-related demand can be…
