IBM Q2 revenue up 1.1% to $17.2B, but net income slips 1.3% to $2.17B on IBM Z shortfall

Filed July 23, 2026 · Period ending June 30, 2026 · Compared to 10-Q Jul 24, 2025 · ~2 min read

Key Changes

• high

  Revenue grew 1.1% to $17.2B, but management said results were below expectations due to a late-quarter shift in client spending away from IBM Z and Transaction Processing.

  MD&A: Q2 performance verify on EDGAR →
• high

  Net income fell 1.3% to $2.17B, and diluted EPS declined 1.7% to $2.27, as gross margin compressed 1.0 point to 57.7%.

  Key Financials view on EDGAR →
• high

  IBM completed the $11.6B acquisition of Confluent in March, adding $7.2B of goodwill to strengthen AI and data streaming capabilities.

  Notes: Confluent acquisition verify on EDGAR →