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IBM Q2 earnings report 2026
CNBC • • business
Key Points:
- IBM reported weaker-than-expected second-quarter earnings with adjusted EPS of $2.93 versus the $2.97 consensus and revenue of $17.16 billion below the $17.58 billion forecast, despite a 1% year-over-year revenue increase.
- The company lowered its 2026 revenue growth forecast to 4%-5% in constant currency, down from over 5% previously, citing weaker sales of Z mainframe computers and transaction processing software.
- IBM aims to improve its full-year pre-tax margin by about 1 percentage point through higher productivity and reiterated expectations for $1 billion in additional free cash flow for the year.
- The high-margin software segment grew 5% to $7.76 billion, consulting revenue remained flat at $5.33 billion, while infrastructure revenue declined 7%, with Z mainframe revenue dropping 42%.
- IBM announced plans to build a U.S. quantum chip foundry and introduced the Bob AI coding tool, used by over 80,000 employees, as part of its strategy to enhance productivity and margins through AI and operational optimization.
