IBM Q2 earnings report 2026

IBM’s It cut its 2026 forecast on Wednesday, posting lower quarterly profit than analysts had forecast, even after the technology provider issued an earnings warning last week. Shares rose 1% in extended trading.

The company’s performance according to the LSEG consensus is as follows:

• Earnings per share: $2.93 vs expected $2.97
• Revenues: 17.16 billion dollars, while the expectation was 17.58 billion dollars

IBM’s revenue increased 1 percent year-over-year in the quarter expression. Net income of $2.17 billion, or $2.30 per share, was down from $2.19 billion, or $2.36 per share, a year ago. Adjusted earnings do not include acquisition-related adjustments.

Management has called for revenue growth of 4% to 5% in constant currency for 2026. As recently as April, IBM was looking for a rise of more than 5% in constant currency. The company reiterated its expectation of $1 billion in higher free cash flow for this year.

Analysts cut their forecasts after IBM announced Preliminary second-quarter results are a rare move in tech. In a letter to investors, CEO Arvind Krishna noted worse-than-planned sales of Z mainframe computers and transaction processing software as organizations rushed to purchase hardware ahead of expected price increases. The stock fell 25%, marking the sharpest single-day decline in history.

The revenue and adjusted earnings per share figures IBM announced Wednesday were in line with figures reported a week ago.

As of Wednesday’s close, IBM shares were down 30% so far in 2026, while the S&P 500 index was up about 10%.

IBM said its high-margin software segment had revenue of $7.76 billion in the second quarter, up 5%. Consulting revenue remained flat at $5.33 billion. Revenue from infrastructure fell 7% to $3.84 billion, while Z mainframe revenue fell 42%.

This quarter, IBM announced that it had signed a letter of intent to establish a US market. quantum chip foundry. It also introduced: Bob AI coding tool based on a blend of generative models adopted by over 80,000 employees.

“IBM is accelerating productivity by scaling software development using artificial intelligence, increasing the effectiveness of the sales and marketing organization, and optimizing the supply chain,” he said in Wednesday’s statement. “These efforts help increase margin and free cash flow and strengthen the company’s ability to capture significant growth opportunities.”

Executives will discuss the results in a conference call with analysts starting at 5pm ET.

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