research report · IBM

International Business Machines Corp

Johannes Vermeer, Woman Holding a Balance, c. 1664, detail · National Gallery of Art

Viridis’s deep research report, written Nov 1, 2026 from its quarterly report (10-Q for the quarter ended Sep 30, 2026, filed Oct 22, 2026). Written and checked with Anthropic’s Claude models.

your email, no card; what you get

business trajectory

Improving

better on balance: sales, margins, cash or competitive position

financial resilience

Strong

can meet its obligations and fund its plan for two years with money it can count on, with room

Judgments of the business from its filings, not of its shares: no valuation, no advice.

bottom line

IBM is a modestly strengthening, highly cash-generative business whose third-quarter headlines overstate the gain. Revenue grew 5.6% at constant currency, but part of software's growth was bought (Confluent, $11.6B) or carried over from the second quarter. GAAP pre-tax income rose only 2.8%, against 8.7% on IBM's operating measure. Nine-month free cash flow of $7.8B covers the $4.8B dividend with room, and $63.8B of debt sits under unchanged A-range ratings. Consulting is the soft spot.

what changed this quarter

  • Revenue was $17.1B, up 4.7% (5.6% at constant currency). Software rose 8.2%, Consulting 0.2% and Infrastructure 4.2%. Within Infrastructure, IBM Z mainframes fell 19.6% and Distributed Infrastructure grew 31.3%.
  • GAAP earnings per share from continuing operations were $2.31 (+25.5%), lifted by a lower tax charge. Operating earnings per share were $2.95 (+11.3%).
  • Free cash flow was $3.0B versus $2.4B. Full-year guidance now calls for free cash flow to grow by more than $1B (the earlier figure is not in the filings). The 4%–5% constant-currency revenue growth guide was kept.
  • On August 17, IBM issued about $2B of Canadian-dollar notes at 4.1%–4.75%.
  • On September 14, the Commerce Department finalized an award of up to $1.0B to Anderon, IBM's quantum-wafer unit; IBM put in $1.0B of its own cash.

in the full report

Its findings, each with the evidence, the strongest counterpoint and what would prove it wrong:

  • Software growth is partly bought and partly timing
  • Profit growth lives in adjusted measures and tax
  • Cash generation is real, but the GAAP jump is a receivables unwind
  • Consulting is losing momentum

Then its finances, the quality of its earnings, its management, the case for and against, and what to watch, its claims cited to the filings and checked against them.

read it whole

Your email and the code we send it, no card. The report then opens: a free account has 2 free reports a month from the library, the reports already written. Already have a Viridis account? Use its email, and the report goes on it. You also see what IBM files, free: its deadlines and its red flags.

Subscribe: your plan’s reports work on any company that files with the SEC, written for you if nobody has asked yet, and each new one on the companies you choose comes as they file.

In Claude or ChatGPT, ask: “What does Viridis's report on IBM say?” Add Viridis to Claude, or to ChatGPT.