By GuruFocus News
Publication Date: 2026-10-22 05:02:00
This article first appeared on GuruFocus.
Revenue Growth: Accelerated to 6% year over year in Q3 2026, above the July base case.
Software Revenue: Grew 9% (over 4 points organic); annual recurring revenue base grew 8% to $24.9 billion.
Red Hat Revenue: Grew 11%, with bookings growth accelerating back to high-teens.
OpenShift ARR: $2.4 billion business, with growth accelerating to over 30%.
Transaction Processing Revenue: Grew 10%.
Data Revenue: Grew 20%, driven by Confluent; Confluent bookings growth of about 20%.
Infrastructure Revenue: Grew 5%, driven by 32% growth in distributed infrastructure.
Consulting Revenue: Grew 2%; AI represented about 30% of Consulting revenue and 35% of backlog.
Operating Pre-Tax Margin: Expanded 70 basis points; adjusted EBITDA margin expanded 60 basis points.
Segment Profit Margins: Software expanded 210 basis points; Infrastructure expanded 120 basis points;…
