Q3 FY26 · Ended Sep 30, 2026 · View SEC filing
The profit jump came from the tax line
Pre-tax income rose only 2.8%, so a one-time tax charge in last year's quarter made net profit look stronger.
For investorsWhat has to go right for profit to grow without tax help
For foundersFunding research by squeezing overhead: the playbook
Research spending climbed to half the size of selling and admin costs, without total expenses outrunning revenue.
Sales, the cheaper revenue to deliver, outgrew services, but their delivery cost rose twice as fast as their revenue.
About 80% of Software revenue recurs, so most of it rests on renewals rather than new deals each quarter.
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Business Lens describes IBM from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing is linked above.
