Key Points

• Interested in International Business Machines Corporation? Here are five stocks we like better.

• IBM delivered stronger-than-expected Q3 results: Revenue grew 6% at constant currency, operating EPS rose 11%, and the company raised its full-year free-cash-flow growth outlook to more than $1 billion while maintaining 2026 revenue-growth guidance of 4% to 5%.

• Software was the main growth engine, with revenue up 9%, annual recurring revenue reaching $24.9 billion, Red Hat growing 11%, OpenShift ARR rising more than 30%, and data revenue increasing 20%.

• Infrastructure demand remained solid while consulting growth was modest: Infrastructure revenue rose 5%, led by 32% growth in distributed…