IBM raises full-year revenue guidance to 4-5% on Q2 beat, reaffirms $1B FCF growth

Filed July 22, 2026 · Period ending July 22, 2026 · ~2 min read

Key Changes

• high

  IBM raised full-year constant-currency revenue guidance to 4-5% (from prior range) and reaffirmed $1B free cash flow growth target, citing improved pre-tax income margin expansion expectations.

  Exhibit 99.1 view on EDGAR →
• high

  Q2 revenue grew 1% to $17.2B; operating EPS rose 5% to $2.93 (GAAP EPS $2.27, down 2%). Software up 5% led by Red Hat (+11%) and Data (+19%); Infrastructure down 7% as mainframe cycle drove IBM Z down 42%.

  Exhibit 99.1 view on EDGAR →
• high

  Q2 free cash flow declined $0.3B year-over-year to $2.5B; first-half FCF flat at $4.8B despite $1.7B operating cash flow improvement, reflecting $10.5B in year-to-date acquisitions.

  Exhibit 99.1 view on EDGAR →