IBM Reports Q2 2026 Results, Cuts Full-Year Revenue Growth Outlook to 4-5%
IBM is trading near its 52-week low of $204.44 (2.8% above the low).
Summary
IBM reported Q2 2026 revenue of $17.2B (up 1%) and cut its full-year revenue growth outlook to 4-5%, below prior guidance and consensus, as infrastructure weakness offset software strength.
Key Events · Earnings and Guidance · IBM
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Q2 Revenue Misses, EPS Mixed
Revenue of $17.2B rose 1% YoY, missing expectations. GAAP EPS of $2.27 fell 2%, while adjusted EPS of $2.93 rose 5%. Software grew 5%, but Infrastructure fell 7% on a 42% drop in IBM Z.
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Full-Year Revenue Guidance Cut
IBM lowered its 2026 constant currency revenue growth outlook to 4-5% from over 5%, with the midpoint below consensus. Free cash flow is still expected to increase by about $1B YoY.
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Balance Sheet Deterioration
Cash fell $6.3B to $8.2B after $10.5B in acquisitions. Total debt rose to $62.0B, up $0.7B year-to-date. The company returned $1.6B to shareholders via dividends.
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Dividend Maintained at $1.69/Share
The board declared a regular quarterly cash dividend of $1.69 per share, payable September 10, 2026 to shareholders of record August 10, 2026.
Analysis · IBM · Technology
The official Q2 2026 earnings confirm the disappointing pre-announced figures: revenue of $17.2B (up 1%), GAAP EPS of $2.27 (down 2%), and adjusted EPS of $2.93 (up 5%). Full-year constant currency revenue growth guidance was lowered to 4-5% from over 5%, with the midpoint now below consensus. While software grew 5% and Red Hat rose 11%, infrastructure revenue fell 7% on a 42% drop in IBM Z. The balance sheet reflects a $6.3B decline in cash to $8.2B after $10.5B in acquisitions, and debt rose to $62B. The stock is trading near its 52-week low after a historic 25% single-day drop on the pre-announcement. The dividend was maintained at $1.69 per share.
How filings like this one have moved
In the 30 days to Oct 3, 2026, 36.7% of the 1075 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.60%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, IBM was trading at $210.09 on NYSE in the Technology sector, with a market capitalization of approximately $193.4B. The 52-week trading range was $204.44 to $332.46. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.