IBM reported third-quarter earnings per share of $2.95 against an estimate of $2.85, and revenue of $17.10 billion against an estimate of $16.82 billion, a beat on both lines. Despite the beat, the stock traded at $243.00 after hours, down 3.36% from its $251.46 close.
| Measure | Reported | Estimate | Result |
|---|---|---|---|
| Earnings per share | $2.95 | $2.85 | Beat |
| Revenue | $17.10 billion | $16.82 billion | Beat |
Source: Company earnings report and sell-side analyst consensus estimates · as of October 21, 2026 at 6:45 PM ET · Reported after the close on Wednesday, October 21, 2026.
Against the quarters before
Over the last four quarters, IBM's record has been mixed on a per-share basis. It topped estimates most recently in the quarter reported Wednesday, October 21, 2026, with EPS of $2.95 against a $2.85 estimate and revenue of $17.10 billion.
In the quarter reported Wednesday, July 22, 2026, IBM missed, posting EPS of $2.93 against an expected $2.95, on revenue of $17.16 billion. Before that, in the quarter reported Wednesday, April 22, 2026, IBM beat with EPS of $1.91 against an expected $1.81, on revenue of $15.92 billion.
Further back, in the quarter reported Wednesday, January 28, 2026, IBM beat with EPS of $4.52 against an expected $4.31, on revenue of $19.69 billion. In the quarter reported Wednesday, October 22, 2025, IBM also beat, with EPS of $2.65 against an expected $2.45, on revenue of $16.33 billion.
| Reported | EPS | Estimate | Revenue | EPS result |
|---|---|---|---|---|
| July 22, 2026 | $2.93 | $2.95 | $17.16 billion | Missed |
| April 22, 2026 | $1.91 | $1.81 | $15.92 billion | Beat |
| January 28, 2026 | $4.52 | $4.31 | $19.69 billion | Beat |
| October 22, 2025 | $2.65 | $2.45 | $16.33 billion | Beat |
Source: Company earnings reports and the consensus estimates at the time
How the stock took it
IBM shares moved to $243.00 in after-hours trading, down 3.36% from the $251.46 close, even as the company beat on both earnings per share and revenue. That after-hours move contrasts with the characterization from Investor's Business Daily, which described the stock as having jumped following the results and noted the response was markedly better than the slide that followed IBM's prior quarterly report.
On guidance, CNBC reported that IBM raised its outlook for full-year free cash flow to an increase of more than $1 billion, up from the roughly $1 billion increase forecast in July. CNBC also reported that software revenue came in at $7.80 billion, up 8%, while consulting revenue was flat at $5.34 billion. Investor's Business Daily reported that IBM maintained its prior guidance for 2026 revenue growth of between 4% and 5%, and that adjusted earnings per share were up 11% from a year earlier.
| Measure | Value |
|---|---|
| Last close | $251.46 |
| Price | $243.00 |
| Change | -3.36% |
Source: Extended-hours trades against the regular close · as of October 21, 2026 at 6:45 PM ET · Extended-hours trading is thin; the price can move a long way before the open.
Who it buys from and sells to
Company filings list a group of financial-services and technology customers tied to IBM, including Royal Bank of Canada, Visa, Mastercard, Goldman Sachs, Morgan Stanley, State Street, NatWest and ServiceNow. These names span major banks, card networks and a software platform, reflecting IBM's reach into enterprise technology and financial infrastructure across multiple sectors.
| Company | Role | Stock | Last move |
|---|---|---|---|
| Royal Bank of Canada | Customer | RY | +1.49% |
| Visa | Customer | V | +0.31% |
| Mastercard | Customer | MA | +0.35% |
| Goldman Sachs | Customer | GS | +2.25% |
| Morgan Stanley | Customer | MS | +3.71% |
| State Street | Customer | STT | +1.42% |
| NatWest | Customer | NWG | +1.40% |
| ServiceNow | Customer | NOW | +2.39% |
Source: Relationships named in company filings (Earnings call transcript); stock quotes · as of October 21, 2026 at 6:45 PM ET · Named in filings; a neighbour's move is not evidence of a link to this report.