IBM's third-quarter software revenue rose 9% at constant currency, faster than 5% in the second quarter, and segment profit grew 15% to about $2.7 billion. The transaction processing business drove most of the swing, and IBM kept its full-year revenue forecast of 4% to 5% at constant currency while expecting 2026 free cash flow to rise by over $1 billion from last year's $14.7 billion. Shares rose less than 1% after the report and closed at $252.11, about 23% below the $329.23 record close on June 2. The author says they will start buying in smaller purchases and add more if recurring revenue nears 10% in the fourth quarter, though the risk is that recurring revenue stays near 8%.
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