International Business Machines Corporation IBM

Hagens Berman Sobol Shapiro LLP has launched a material investigation into IBM (NYSE: IBM) over disclosures tied to its Z mainframe segment. The probe questions whether IBM adequately informed investors about risks from a sizable revenue shortfall in Z mainframe deals and whether filings complied with federal securities laws and SEC rules. Investigators are examining management's knowledge of large Z contracts that did not close on time and how that information was shared with the market. The immediate effect includes an earnings warning and a roughly $68 billion decline in market value, with potential restatements, enforcement actions, or changes to sales practices if warranted. The issue threatens confidence in infrastructure revenue timing and IBM's long-term profitability, potentially reshaping sentiment around AI, hybrid cloud, and z mainframes as investors reassess future cash-flow quality. Regulatory scrutiny over Z mainframe disclosures could trigger potential restatements, enforcement actions, and a hit to investor confidence in IBM's long-term profitability.

Accenture stock remains 53% below its pre-tariff high after the 2025 shock, having fallen 28% during the tariff episode and retracing only modestly as enterprise IT spending softened. The company still shows revenue growth across the last three fiscal years with a 12-month operating margin of 15.8% (up from 15.4% three years ago) and a stronger balance sheet with more cash than debt. In fiscal Q3 2026, consulting revenue rose 1% in local currency while managed services grew 5%; management attributed roughly $100 million in consulting miss to the Middle East conflict. For fiscal Q4, guidance calls for 1%–5% local-currency revenue growth; outcomes near the top suggest improving demand, while outcomes near the bottom indicate persistent discretionary-spend pressure. Historically, Accenture has rebounded from shocks with a median ~2.6 months to retake old highs, though the 2025 shock remains unusually severe. Consulting remains a watch point for pressure potential. Tariff-driven IT-spend weakness could dent IBM's consulting and services demand in the near term, representing a moderate influence rather than a fundamental shift.

IBM stock trades at about 19.9x trailing earnings, modestly cheaper than the S&P 500 median of 22.1x, yet has fallen 14.4% over the past year while the market rose. IBM sells software, consulting and infrastructure, with software revenue up 10.6% in fiscal 2025 and total revenue up 7.9% year over year. Operating margin is 18.4%, and free cash flow equals 6.2% of market value. Growth has slowed: three-year revenue averaged 4.5% per year, below the S&P’s 5.8%. In Q2 2026, revenue rose only 1% as large deals were delayed by supply constraints, particularly in transaction-processing software. Management called the weakness a delay, not lost demand, and guides full-year 2026 revenue growth of 4–5% and software growth of 6–8%, with free cash flow up about $1 billion. The key question is whether delayed deals rebound in the second half to justify the valuation. Near-term deal delays pose a moderate headwind, but guidance for mid-single-digit revenue growth and higher cash flow suggests a balanced, not crippling, trajectory.

IBM integrated its Digital Asset Haven with Swift’s blockchain-based shared ledger, enabling 17 global banks to pilot tokenized deposit transactions. Banks including BNY Mellon, Citi, HSBC, UBS and Wells Fargo can move tokenized funds while final settlement remains on their existing systems. IBM rolled out two beta updates on Sept. 24 aimed at regulated institutions: an ISO 20022 Messaging Adapter so tokenized transactions can be instructed in standard payment formats, and an on-premises version that runs entirely on IBM Z or LinuxONE hardware with Crypto Express security modules, keeping software and keys in-house. The updates allow 24/7 movement of funds and provide formal key ceremonies for regulator documentation. Digital Asset Haven, launched Oct 2025 with Dfns, expands beyond cloud to on-prem. The move comes as lenders modernize payment rails; J.P. Morgan research says 93% of institutions are upgrading payments infrastructure. IBM shares rose about 2.5% on the news. Expands IBM's enterprise blockchain footprint via major-bank tokenized deposits and regulator-ready, in-house/on-prem deployments.

IBM stock fell 12% over the past year as Q2 2026 missed expectations due to delays in large deals as clients shifted budgets to servers, storage and memory. A scenario based on IBM’s trailing numbers projects revenue rising 9.9% annually for three years to $91.7B; software would be about 45% of revenue with ~80% recurring; ARR up 8%; net margin slipping from 15.5% to 14.5%, lifting earnings to $13.3B. The implied upside is roughly 24% to about $289 a share, with the current guide for 2026 at 4–5% constant-currency revenue growth. If slipped deals return—about a third closed in early Q3 2026—the CFO’s high-end software case could drive near-double-digit growth in H2 2026. The first test comes when IBM reports around Oct 21. Potential rebound in large deals and margin stability could unlock roughly 24% upside, signaling a significant potential impact on future performance.

IBM's Chief Sustainability Officer Christina Shim outlines a strategy to turn sustainability into a growth engine by weaving energy, materials, and market-access challenges into core business decisions. The push is shaped by rising AI demand, geopolitical frictions, and concentrated supply chains. Rather than treating sustainability as a stand-alone program, IBM embeds it into existing enterprise workflows, integrating governance with rapid access to regulatory and market data through AI. Shim says this approach lowers risk, creates measurable savings, and accelerates momentum across products and operations. Progress is tracked through quantified savings, percentages of workflow integration, and stakeholder engagement. The conversation emphasizes balancing innovation with governance, extending sustainability from compliance into value creation, and using data-driven insights to inform strategy in a dynamic, AI-driven global environment. Integrating sustainability with workflows and AI-enabled data access could significantly influence IBM's efficiency, governance, and growth trajectory.

IBM unveiled two Digital Asset Haven updates for regulated banks. First, its ISO 20022 Messaging Adapter connects Haven to Swift's blockchain ledger, enabling tokenized deposit transactions for 17 pilot banks including Citi, HSBC, UBS, BNY Mellon and Wells Fargo. Second, it offers a fully on-premises deployment on clients' IBM Z or LinuxONE systems, with software and cryptographic key management kept in-house, supported by Crypto Express hardware and formal key ceremonies for regulators. The updates give banks the option to use Haven with Swift's shared ledger and standard payment messaging or run Haven entirely within their own data centers without public cloud exposure, aligning with payments modernization and IBM's goal to serve both cloud-connected and on-premises markets. Dual-path strategy expands IBM's enterprise crypto footprint in regulated banks, potentially boosting revenue and market position.

IBM announced two beta capabilities for Digital Asset Haven: Swift-based ISO 20022 messaging integration and an on-premises deployment. The Swift Integration enables tokenized deposit transactions on Swift's shared ledger via ISO 20022 messages, connecting about 12,500 institutions in 200+ markets. The on-premises option runs the platform in client data centers on IBM Z/LinuxONE with Crypto Express HSMs, auditable key ceremonies, and compatibility with Offline Signing Orchestrator for cold storage. Both are in beta; 17 institutions are piloting tokenized deposits. Digital Asset Haven had SaaS and hybrid launches in Oct 2025, and IBM says regulated banks are modernizing payments, with 93% of institutions pursuing payments infrastructure upgrades per JPM data. Extends IBM's asset-haven reach into regulated banks, signaling a meaningful strategic expansion.

IBM and Lockheed Martin have opened a quantum innovation hub at ETH Zurich via armasuisse, bringing IBM Quantum System Two powered by Quantum Nighthawk to the Swiss National Supercomputing Center in Lugano. The project, run with ETH Zurich, aims to fuse IBM's quantum computing and AI capabilities with Lockheed's quantum sensing and additive manufacturing to advance next-gen compute for industrial and national-security uses. Strategically, IBM gains a high-profile European showcase for its quantum ecosystem and broader hybrid-cloud/ARR-driven software strategy, while Lockheed strengthens its technology edge in defense programs and long-term R&D funding. Risks include IBM's leveraged balance sheet and capital intensity in early-stage quantum initiatives, potential delays in enterprise deals, and margin pressures on defence projects for Lockheed. Near-term financial impact is unclear; the venture could become a meaningful long-term catalyst if milestones translate into recurring revenue and robust software-hardware monetization. Strategic upside exists from a high-profile quantum hub, but near-term returns are uncertain due to IBM's leverage and execution risks.

Dell Technologies has stopped leading earnings calls with its PC refresh narrative and now emphasizes AI server orders. The PC refresh, once central as customers swapped aging PCs in anticipation of AI PCs, is no longer the headline even though the PC business remains sizable. In fiscal 2026, servers and storage (Infrastructure Solutions Group) reached $60.8B and grew 40%, while the Client Solutions Group (PCs) was $51.0B, up 5.4%. In the latest quarter, servers and storage rose 89% year over year, PC revenue rose 20%, and AI orders hit a quarterly record of $60.9B—more than 35 times early-2025 levels. Dell guides mid-teens PC growth for fiscal 2027 but warns PC operating margins will slide toward about 6%. A softer PC market and parts allocation toward servers shape the outlook. Dell's pivot to AI servers signals growing AI-capable hardware demand, intensifying competition with IBM in enterprise infrastructure.

IBM unveiled a Swift-friendly upgrade to its Digital Asset Haven platform, letting banks translate ISO 20022 messages into tokenized deposits on Swift's shared blockchain ledger. Seventeen pilot institutions are already moving funds in this on-ledger form, with IBM offering an adapter that keeps security keys on premises. A second, on-premises version runs only on IBM Z and LinuxONE and promises eight nines availability, aiming to sell hardware alongside software subscriptions. The move deepen's Swift's bank-to-bank settlement strategy and reduces banks' reliance on third-party bridges like XRP. Ripple's XRP faces pressure as banks can settle on their own ledgers or with RLUSD stablecoins. The integration remains a beta with a small pilot base, and IBM's revenue from this feature isn't disclosed. Still, combined with IBM's mainframe push, it signals momentum in enterprise digital settlements that could matter over time. Expands IBM's footprint in bank settlement tech and could modestly lift enterprise services pipeline.

IBM closed at $227.25, down 2.37%, underperforming the S&P 500’s flat session; the Dow slipped 0.31% and the Nasdaq gained 0.01%. Over the last month IBM rose 1.26, lagging the Computer and Technology sector (5.26%) but beating the S&P 500 (0.53%). The company will report earnings on Oct 21, 2026, with an expected EPS of $2.90, up 9.4% year over year, and revenue of $16.88 billion, up 3.34%. For the year, Zacks Consensus calls for EPS of $12.33 and revenue of $70.39 billion (up 6.38% and 4.22%). Analyst estimates have recently shifted, a sign of evolving near-term trends. IBM currently has a Zacks Rank of #4 (Sell). Valuation shows a forward P/E of 18.88 (vs. industry 21.84) and PEG of 2.22 (industry 0.68). Industry rank 77 in the Computer - Integrated Systems group. Upcoming earnings and mixed analyst revisions imply a moderate near-term impact on sentiment and valuation.

IBM expands its partnership with Marist University through an Innovation Incubator focused on AI research, enterprise computing, and student career readiness. Using the IBM z17 mainframe, initial projects will cover AI, business, finance and civic engagement, with plans including autonomous AI agents for controlled marketing, quantum-optimization algorithms to analyze real-time financial data and portfolio allocations, and studies to improve polling methods and voter participation models. IBM experts will mentor Marist students and faculty to tackle business, societal and community challenges, broadening learning beyond computer science into business, communications, political science and environmental studies. The collaboration underscores IBM's strategy of embedding enterprise technologies in academia to connect research with real-world applications and evolving tech-industry needs. Competitors Microsoft and Alphabet are pursuing AI advances, highlighting the competitive AI landscape. Longer-term capability building may modestly boost IBM's position, but near-term financial impact is limited.

IBM accelerates AI and quantum initiatives after ecosystem deals, including The Hashgraph Group's IDTrust on IBM Cloud, and announces new quantum collaboration. The stock has lagged recently, with 90-day return -9.88% and year-to-date -20.15%, but 3-year total shareholder return of 78.33% and 5-year TSR of 112.00% point to a stronger long-run payoff. Analysts compare IBM to AI/quantum peers; it trades below recent highs as investors weigh AI/hybrid cloud shifts against debt load and growth risk. Valuation suggests a roughly 9% undervaluation: a fair value of $256.08 vs a close of $232.76, driven by IBM's AI-led platform, Red Hat integration, and recurring cash flows. Risks include fierce AI/cloud competition and the potential underperformance of quantum investments. The P/E of 20.5x vs peers at 13.8x underscores the valuation gap and market skepticism. AI/hybrid cloud shift and quantum investments could meaningfully alter growth trajectory and investor sentiment.

THG announces that its IDTrust self-sovereign identity platform, built on Hedera Hashgraph, has been validated and listed on IBM Cloud Catalog, making the first Hedera-based enterprise app directly purchasable as a SaaS on a major cloud marketplace. The partnership with IBM places verifiable AI agent identity in front of IBM’s global enterprise client base under the Know-Your-Agent (KYA) framework. THG earned IBM Silver Partner status and signed a global Embedded Solution Agreement, enabling embedding IBM tech into THG’s offerings. IDTrust issues DIDs and verifiable credentials for AI agents, devices, and humans, anchored on Hedera, with MCP servers ensuring auditable authorizations. The move follows THG’s momentum with Merck, PwC, Teleport, and Hedera-related deployments, and industry forecasts that 40% of enterprise apps will embed AI agents by 2026, boosting enterprise-ready agent identity. Expands IBM’s AI governance capabilities and Hedera-based identity in a major cloud marketplace, affecting enterprise adoption and strategic positioning, though not a full-scale overhaul of IBM's core business.

IBM, a hybrid cloud, AI and mainframe company, placed its z17 mainframe at Marist University's Innovation Incubator. Shares rose about 2.2% to $236.55 after Tuesday's close of $231.38, though the stock sits roughly 2.6% below its GF Value estimate of $242.84. The campus project alone doesn't close that gap. Marist plans to test autonomous marketing agents, explore AI polling applications, and study quantum-optimized portfolio allocations, with IBM providing the hardware for development and testing and without a disclosed revenue forecast. The investor case hinges on cultivating future developers who could bring IBM's technology to enterprise customers; the z17 on campus shows where IBM wants its platform used, but it does not yet indicate customer demand or pricing. Shows potential for long-term ecosystem development around z17 with academic collaboration, but no revenue impact or near-term monetization.

IBM vice chair Gary Cohn argues AI oversight should inspire creativity without stifling innovation in the US. In a Yahoo Finance interview, he says regulation should target product outcomes rather than the underlying technology, and that rules should measure what AI delivers to users and society. Cohn contends that tech-specific bans or labels could slow deployment, and urges policymakers to balance safety with innovation. IBM's stance is that clear, outcome-based standards can protect consumers while encouraging new products and services. The discussion highlights policy implications for AI development, industry competitiveness, and how IBM plans to engage regulators to shape practical rules. Advocating product-outcome AI regulation could shape policy and IBM's strategic AI positioning.

IBM Vice Chair Gary Cohn tells Yahoo Finance’s Brian Sozzi that AI will boost productivity and economic growth, and that job losses due to automation are not inevitable. Higher output and efficiency will create more jobs than they remove as IBM and others expand data-center capacity and AI infrastructure. He argues AI's productivity gains will lift economic growth and lead to net employment, countering fears of widespread displacement. The discussion centers on IBM’s role in the AI build-out, enterprise AI services, and how the company sees the labor market evolving alongside automation. The interview frames IBM as optimistic about AI’s net positive impact and its strategic position in the growing AI infrastructure ecosystem. Contains optimistic AI productivity thesis that could affect IBM's AI infrastructure demand and investor sentiment, but lacks concrete monetizable details.

Verizon will invest $70 million in a nationwide AI training initiative for job seekers, small businesses and educators, partnering with Goodwill Industries and other nonprofits. Training resources will be provided by IBM, Google, Anthropic, Microsoft and OpenAI, aiming to reach hundreds of thousands as AI reshapes the workforce. CEO Dan Schulman urged broader corporate participation to build a multi-billion-dollar fund. The plan expands Verizon's prior $20 million commitment, bringing total investment to $70 million; the earlier funds supported AI skills training for departing Verizon workers after announcing 13,000 job cuts. IBM could benefit from expanded participation in AI training initiatives through this effort, potentially boosting demand for its AI resources, though impact is modest.

Hashgraph Group (THG) has listed its IDTrust identity software on IBM's Cloud Catalog and established a global partnership with IBM. IDTrust has completed IBM’s validation and is now available through the IBM Cloud marketplace. THG uses Hedera-based enterprise software, and the listing makes IDTrust one of the first Hedera-based commercial apps offered as a service via a major cloud marketplace. The IBM Cloud Catalog addition gives THG access to IBM’s enterprise customer base. THG qualified for IBM Silver Partner status and signed an Embedded Solution Agreement to integrate IBM cloud and AI technologies into THG products. IDTrust provides verifiable digital identities for AI agents, devices, and people; THG cites use by a European telecom operator and targets Know Your Agent for autonomous software verification. Gartner expects 40% of enterprise apps to include task-specific AI agents by 2026. Expands IBM's cloud ecosystem with IDTrust; gains enterprise reach and partner integration, but likely modest near-term revenue impact.

Hashgraph Group's IDTrust AI-agent identity software has been listed on IBM Cloud Catalog and THG signed a global IBM partnership, enabling Hedera-based IDs to be sold as a service to IBM's enterprise clients. THG qualified for IBM Silver Partner status and signed an Embedded Solution Agreement to integrate IBM cloud and AI tech into its products. IDTrust issues verifiable identities to AI agents, devices, and people and is already deployed with a European telecom for verified caller identity. The move targets the rising 'Know Your Agent' trend, aligning with Gartner's forecast that 40% of enterprise apps will embed task-specific AI agents by 2026. IBM has been Hedera Governing Council member since 2019. Broadens IBM's cloud AI offerings and trust infrastructure for autonomous agents, a meaningful but not transformative development.

IBM's annual recurring revenue (ARR) is rising even as the quarter lagged. ARR software stood at $24.6 billion on the Q2 2026 call, up 8% year over year, with software accounting for about 45% of total revenue and software revenue up 5% with flat organic growth. Recurring revenue kept climbing through the quarter, even as revenue from transaction processing software fell 9%. The company noted that about one-third of delayed large deals closed in the first three weeks of Q3, a sign of delay rather than demand loss. Management expects software to grow at least 6% in 2026, potentially up to 8%. A slower ARR growth in fiscal Q3 would suggest a broader slowdown, while if ARR growth stays near 8% and delayed deals close, Q2 was a pause rather than a trend. IBM stock has fallen roughly 10% over the past year as the S&P 500 rose about 19%. A slowdown in ARR growth in Q3 would materially alter IBM's revenue trajectory and investor sentiment.

Marist University and IBM announced an Innovation Incubator on Marist’s campus, expanding a more than 50-year partnership. The program provides an IBM z17 mainframe to support AI research and experiential learning across majors, aiming to prepare students for the digital economy. Initial projects include: AI in Marketing and Business—autonomous AI agent teams will run synthetic campaigns to stress-test guardrails against aggressive, deceptive, or unethical tactics; AI for Financial Management—joint project using quantum optimization to analyze real-time data and optimize portfolios; AI and Polling/Civic Engagement—Marist Poll and School of Computer Science and Mathematics researchers will explore AI-enhanced polling methods and voter participation modeling. Beyond CS, the collaboration aspires to create a university-wide innovation ecosystem linking students, faculty, and IBM experts to address societal and community challenges. The z17 gives on-campus access to scalable, secure enterprise AI computing. Expands IBM's AI and enterprise computing ecosystem through academia, signaling long-term workforce development and potential future value for IBM's business.

IBM placed its z17 mainframe at Marist University's AI Innovation Incubator, giving students hands-on access to enterprise-grade, security-focused computing. The move aims to seed future developers, researchers and enterprise decision-makers into IBM’s ecosystem, with no disclosed immediate revenue. Potential projects include autonomous marketing agents, AI-enhanced polling and quantum-assisted portfolio allocation. IBM emphasizes a long-term ecosystem play rather than near-term deals, viewing the university as a proving ground for new workloads and software that could broaden adoption and talent pipelines. IBM shares hovered near $231.70, while GF Value suggests the stock may be modestly undervalued relative to an estimated $242.82 intrinsic value. Long-term ecosystem and talent development benefits could influence IBM's future, but no immediate revenue impact is evident.

Omnilogy, a Warsaw-based IBM i specialist, has teamed with Power by Fortra to make Omnilogy's i-Rays AI observability platform available to Fortra's customers, expanding access to AI-driven anomaly detection for IBM i operations and helping move clients from reactive monitoring to proactive management. Fortra's IBM i Marketplace Survey found 69% of 315 IBM i professionals cited skills shortages as their top concern, a gap the partnership aims to close by leveraging Fortra's sales, implementation, training, and support network. i-Rays aims to integrate IBM i data into enterprise observability stacks and bolster executive confidence in a reliable IBM i environment, with Omnilogy gaining access to Fortra's customer base. Fortra will handle opportunity discovery, contracting, billing, and renewals, offering a streamlined path from evaluation to production deployment, backed by industry experts. Expands IBM i ecosystem observability with AI-driven tooling, potentially modestly boosting IBM's product attractiveness and customer retention.

IBM, in collaboration with NASA and ETH Zurich, released an open Lunar Foundation Model for scientific lunar research and announced a new quantum innovation hub to widen access to quantum computing. The Lunar Foundation Model aims to accelerate lunar science and exploration, while the ETH Zurich hub targets industrial use cases in materials science, financial services and aerospace, leveraging IBM’s hybrid-cloud, software and consulting strengths. Investors are advised to look beyond the headlines, as IBM is only one player in a broader AI and quantum infrastructure buildout and the company faces execution risk in turning research collaborations into scalable, high-margin revenue. The article notes catalysts for IBM’s long-term narrative, but emphasizes the need to see real paid workloads on Quantum System Two and potential revenue/backlog disclosure. It also highlights cash-flow guidance as a key metric for value. Open lunar model and ETH Zurich hub create potential long-term AI/quantum revenue catalysts, but monetization depends on scalable enterprise adoption and disclosure of related revenue.

IBM (NYSE: IBM) is expanding its quantum-chip manufacturing footprint with government support and increased private investment. The Commerce Department has finalized a $1 billion award to IBM's Anderon subsidiary, adding to a disclosed $2 billion package that includes an additional $1 billion of IBM capital behind Anderon's Albany 300-millimeter foundry. Early wafers are moving into production, focusing on superconducting qubits and the signaling/readout hardware to interconnect them. IBM says more quantum architectures will follow, potentially turning the Albany site into a broader manufacturing platform that could serve outside customers if demand grows. The arrangement halves the remaining capital burden for IBM, but the company has not disclosed external customers, purchase commitments, utilization targets or revenue goals for the foundry. Shares were down about 0.5% to $228.46. Federal funding and a $2 billion investment expand IBM's quantum-manufacturing ambitions and could attract external demand, potentially altering long-term trajectory.

US government funds IBM's Anderon with $1B to build first pure-play quantum wafer foundry in upstate New York; IBM pledges another $1B to reach commercial production, aiming to become a TSMC-style quantum foundry for the industry. Anderon will produce superconducting qubit arrays and related components; IBM seeks to serve not only itself but a budding quantum ecosystem. Rigetti, D-Wave, and Quantinuum each received up to $100M from the Commerce Department in exchange for small equity stakes; Google Quantum AI declined government funding citing conditions. IBM stock had a rough July after weak Q2 guidance, highlighting it has lagged in AI uptake; this move signals a potential strategic pivot toward quantum hardware during demand shift. Federal funding and a multi-billion investment could dramatically alter IBM's long-term position in quantum hardware and its competitive edge.

Accenture's stock has jumped about 23% in three months as it doubles down on growth via acquisitions. In June, it raised fiscal 2026 deal guidance to about $9 billion (from $5 billion), targeting security for operational technology and including a majority stake in one platform plus two other firms. The outlay would consume roughly four-fifths of guided free cash flow ($10.8–$11.5 billion) and be financed with long-term debt while maintaining an investment-grade rating. Management says deals would deliver about 2 percentage points of inorganic growth into fiscal 2027; the security acquisitions add $208 million in ARR (48% growth) but are small versus $73.1 billion revenue. A key test arrives with fiscal Q4 2026 results on Oct. 1 to see if organic growth accelerates or bought growth dominates. Acquisition-driven growth by a rival could moderately affect IBM's market share and margins in consulting and managed services.

Accenture stock climbed about 43% from June 18 to Sept 18, 2026, beating the S&P 500’s 2.3% gain after reporting fiscal Q3 2026 and unveiling a much larger push into security software and smaller clients. The plan began in Sept 2025 with 16% security growth in fiscal 2025, the CyberCX acquisition, and an intent for roughly $3 billion of FY2026 acquisitions. By Dec 2025 it expanded into data centers with a majority stake in DLB Associates; in March 2026 it linked data centers and cybersecurity as AI enablers and raised the budget to about $5B, targeting mid-market faster revenue. On June 18, 2026 the budget rose to about $9B, centering on a majority stake in a security platform for OT and the launch of Accenture Edge for firms with $300M to $3B in revenue; Aug 27 added COMWARE to bolster Edge. The quarter showed mixed results: 3% revenue growth in local currency, weaker bookings, and trimmed full year guidance; security ARR was $208M, up 48%. Aggressive Accenture expansion into security, AI-enabled services, and mid-market outsourcing increases competitive pressure on IBM in core security and services segments.