International Business Machines Corporation earnings overview

IBM FY2026 Q2 · Calendar Q3 2026

International Business Machines Corporation

IBM's Q2 2026 revenue growth decelerated to 1% year-over-year from 6% in Q1, as the timing of large CapEx-sensitive infrastructure deals offset the durability of recurring software revenue, which represents 80% of the software base, and a 37% surge in distributed infrastructure. EPS of $2.93 matched the consensus estimate exactly, while revenue of $17.16 billion fell 1.7% short of the $17.46 billion consensus. Management maintained full-year revenue guidance at 4%–5% and reiterated its $1 billion free-cash-flow growth target, characterizing the quarter's softness as deal-timing rather than demand erosion. The stock's abnormal move of +1.7% in the next session, followed by a +4.7% subsequent drift, is consistent with the market accepting that framing — though the deceleration from Q1's 6% growth and the drop in the bullish score from 80 to 70 warrant monitoring.