IBM reported Q2 2026 earnings that missed expectations, with revenue of $17.16B vs. $17.58B consensus and adjusted EPS...
IBM reported Q2 2026 earnings that missed expectations, with revenue of $17.16B vs. $17.58B consensus and adjusted EPS of $2.93 vs. $2.97 (CNBC source 5).
confidence score
Strong evidence: 8 independent source classes support this read.
IBM has already moved down -19% over the recent 30-90 day window.
signal brief
IBM reported Q2 2026 earnings that missed expectations, with revenue of $17.16B vs. $17.58B consensus and adjusted EPS of $2.93 vs. $2.97 (CNBC source 5). The company lowered its full-year constant-currency revenue growth forecast to 4%-5% from over 5% (source 5, Economic Times source 8). The primary drag was the infrastructure segment, where Z mainframe revenue collapsed 42% year-over-year, dragging total infrastructure revenue down 7% to $3.84B (source 5). CEO Arvind Krishna attributed the weakness to customers diverting budget to AI-related hardware purchases amid 15%-30% price increases for data center gear, causing 'tens' of mainframe deals to slip from the quarter (TechCrunch source 6). IBM's high-margin software revenue rose 5% to $7.76B but missed estimates of $7.88B (source 5). The stock fell 25% on preliminary disclosure and is down 30% year-to-date (source 5). Management insists the demand is deferred, not destroyed, noting that about one-third of slipped deals have already closed in Q3 (source 8). However, the guidance cut signals sustained headwinds from AI infrastructure crowding out legacy enterprise hardware spending.
What the sources said:
- CNBC: 'IBM lowered its 2026 forecast and delivered weaker earnings than analysts had projected...' (source 5)
- TechCrunch: 'The culprit? IBM's cash-cow mainframe business was down 42%.' (source 6)
- Economic Times: 'CEO Arvind Krishna said last week IBM had "faltered" in adapting and "numerous large deals" had slipped.' (source 8)
source data used
“IBM reckons Moore's Law isn't finished, and their new 7A Nanostack is how they're proving it. Ask Nvidia and they'll tell you scaling is dead. Ask TSMC and they don't seem to care either way. IBM...”
“Today’s IBM has defined a clear strategy to lead in the era of hybrid cloud and AI Current and past financial reports Current and past dividend payments See today's IBM stock performance Use this look-up tool...”
“assets: 151880000000 (10-Q filed 2026-04-23) common_stock_capital: 63318000000 (10-Q filed 2026-04-23) liabilities: 119139000000 (10-Q filed 2026-04-23) net_income: 1055000000 (10-Q filed 2026-04-23) revenue: 14541000000 (10-Q filed 2026-04-23)”
“Keep me signed in Some subscribers prefer to save their log-in information so they do not have to enter their User ID and Password each time they visit the site. To activate this function, check the...”
“IBM lowered its 2026 forecast and delivered weaker earnings than analysts had projected on Wednesday, even after the company issued an earnings warning last week. IBM said it aims to widen its full-year pre-tax margin by...”
“On Wednesday, IBM officially reported earnings and the news was as bad as everyone knew it would be. While the 115-year-old company still generates boatloads of cash — $17.2 billion in revenue, $9.9 billion in gross...”
- https://www.marketwatch.com/story/ibm-just-cut-its-outlook-why-its-stock-is-bouncing-anyway-9d36e22a?mod=mw_rss_topstories
“The company also missed profit and revenue expectations for the second quarter ended June 30. Executives sought to reassure shareholders that customers prioritized spending on AI in the quarter but were not looking to move away...”
Decision support, not stock advice. This signal is research with cited evidence — not a recommendation to buy, sell, or hold any security.