IBM (IBM) Q3 earnings: Taking a look at key metrics versus estimates

IBM (IBM) reported $17.1 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 4.7%. EPS of $2.95 for the same period compares to $2.65 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $16.87 billion, representing a surprise of +1.37%. The company delivered an EPS surprise of +2.43%, with the consensus EPS estimate being $2.88.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how IBM performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenue- Software: $7.8 billion versus $7.67 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.3% change.
• Revenue- Consulting: $5.34 billion versus the five-analyst average estimate of $5.38 billion. The reported number represents a year-over-year change of +0.2%.
• Revenue- Other: $66 million versus $42.18 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +73.7% change.
• Revenue- Financing: $192 million versus $198.44 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -4% change.
• Revenue- Infrastructure: $3.71 billion compared to the $3.54 billion average estimate based on five analysts. The reported number represents a change of +4.2% year over year.
• Revenue- Intelligent Operations: $2.4 billion compared to the $2.44 billion average estimate based on four analysts. The reported number represents a change of 0% year over year.
• Revenue- Automation: $1.9 billion compared to the $2.01 billion average estimate based on four analysts. The reported number represents a change of 0% year over year.
• Revenue- Strategy and Technology: $3 billion compared to the $2.95 billion average estimate based on four analysts. The reported number represents a change of +3.5% year over year.
• Revenue- Hybrid Cloud: $2.1 billion versus the four-analyst average estimate of $2.09 billion. The reported number represents a year-over-year change of +10.5%.
• Revenue- Infrastructure support: $1.3 billion versus $1.28 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a 0% change.
• Revenue- Data: $1.7 billion versus $1.72 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +13.3% change.
• Revenue- Transaction processing: $2.1 billion versus $1.78 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +10.5% change.

Shares of IBM have returned +4.6% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.