IBM Q2 revenue up 1% to $17.2B but Infrastructure down 7% on mainframe deal slippage

Filed July 14, 2026 · Period ending July 14, 2026 · ~2 min read

Key Changes

• high

  Infrastructure revenue fell 7% as clients shifted capex to supply-constrained servers/storage ahead of price increases and cybersecurity concerns distracted buyers; IBM acknowledged execution failures as large mainframe deals failed to close on expected timelines.

  Exhibit 99.1 view on EDGAR →
• high

  Q2 revenue $17.2B (up 1%), operating non-GAAP EPS $2.93 (up 5%), year-to-date free cash flow $4.8B; Software up 5%, Consulting flat, but Infrastructure shortfall drove majority of miss versus expectations.

  Exhibit 99.1 view on EDGAR →
• high

  Announced Lightwell, a $5B commitment with 20,000+ engineers to address open source vulnerabilities; early adopters include Bank of America, Citi, JPMorgan Chase, Goldman Sachs, and other major financial institutions.

  Exhibit 99.1 view on EDGAR →