By Trefis Team
Publication Date: 2026-10-27 11:22:00
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Shares of International Business Machines (IBM) rose 0.26% on October 22, 2026, during the session following its fiscal Q3 2026 report, while the S&P 500 fell 1.2%. Microsoft, Amazon and Oracle each fell more than 2% that day. Revenue came in just 0.7% above analysts’ estimates and earnings per share topped expectations by 2.2%. With a beat this small, the more telling changes sit further down the report.
So where did IBM’s quarter actually turn?
IBM’s Software Business Sped Back Up
The turn came in software, which generated 44.4% of IBM’s revenue in fiscal 2025, more than any other segment. Management said software revenue growth jumped four points from the second quarter to reach 9%. It also said the division led a broader pickup across IBM’s segments, with infrastructure growth rising to 5%.
Management said the biggest…