International Business Machines Corp.

Strong 3Q performance; growth broadly re-accelerated - Revenue grew 6% (constant currency; “above base case” from July). - Segment momentum: Software +9% (incl. Red Hat +11%; OpenShift ARR >30% growth), Infrastructure +5%, Consulting +2% (modest improvement). - Software acceleration was organically driven, with the biggest pickup tied to transaction processing rebound after 2Q timing effects.

Profitability + cash flow momentum; productivity flywheel working - Operating pre-tax margin expansion: +70 bps (and Adjusted EBITDA expansion: +60 bps). - Diluted operating EPS: +11% growth. - Free cash flow: about $8B through first 9 months, +8% YoY; 3Q productivity actions helped margin expansion while still funding growth. - FCF outlook raised: > $1B of full-year free cash flow growth (primary driver: Adjusted EBITDA; partially offset by CapEx, cash taxes, net interest). - Liquidity/shareholder returns: $11.1B cash; $4.8B dividends returned through first 9 months.

Full-year forecast reaffirmed at base-case revenue; software slightly guided up - Revenue growth expectation (unchanged): 4%–5% for 2026. - Software growth forecast raised/clarified: ~7% as revised base case; expected ~7%–8% full-year. - Hybrid cloud: double-digit growth; Data: mid-teens growth; Automation: low double-digit growth. - Transaction processing (TP): raised to ~flat for the full year (i.e., not expecting continued double-digit run-rate beyond normalization). - Infrastructure: still low double-digit growth for full year, with distributed infrastructure a key tailwind. - Consulting: low-to-mid single digit revenue growth expectation supported by GenAI backlog quality/momentum.