IBM Cuts 2026 Revenue Growth Outlook to 4%-5% After Software and Cash Flow Miss
IBM cut its full-year constant-currency revenue growth forecast for 2026 to a range of 4% to 5%, down from a previous projection of more than 5%, after second-quarter results showed missed software sales and lower free cash flow than analysts expected.
The company reported $17.16 billion in quarterly revenue and operating earnings per share of $2.93, topping prior-year figures and meeting bottom-line estimates but falling short of top-line guidance. Chief Financial Officer James Kavanaugh said the revenue headwinds stemmed from delayed contracts that pushed into the quarter's final months, though management added that roughly a third of those contracts were secured in the third quarter. The revised guidance also includes a software revenue growth projection of 6% to 8% for the full year, down from above 10%, while infrastructure revenues slipped 7% year over year.
From the sources (15 posts)
@zerohedge*IBM 2Q SOFTWARE REV. $7.76B, EST. $7.99B
@financialjuice$IBM IBM Q2 Earnings & FY Outlook Operating EPS $2.93 vs. $2.80 y/y Revenue $17.16B est.17.52B Software Revenue $7.76B, est. $7.99B Consulting Revenue $5.33B, est. $5.39B Free Cash Flow $2.54B, est. $2.95B Sees FY Revenue (constant FX) +4%
@trendspider$IBM Q2 Earnings Double Beat Adj. EPS: $2.93 vs $2.86 est Sales: $17.162B vs $16.860B est 🟩 +3.66%
@firstsquawkIBM Q2 2026: REVENUE $17.16B (EST $17.52B); OPERATING EPS $2.93 (PRIOR $2.80); SOFTWARE REVENUE $7.76B (EST $7.99B); CONSULTING REVENUE $5.33B (EST $5.39B); FREE CASH FLOW $2.54B (EST $2.95B); LOWERS FY REVENUE GROWTH GUIDANCE TO +4%-+5% FR
@alphasenseinc$IBM Earnings: - Revenue: $17.16 billion - EPS: $2.93 - Software — revenues of $7.8 billion, up 5 percent - Consulting — revenues of $5.3 billion, flat, up 1 percent at constant currency - Infrastructure — revenues of $3.8 billion, down 7
@wallstengineIBM $IBM Q2’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $17.2B (Est. $17.34B) 🔴; +1% YoY 🔹 Adj. EPS: $2.93 (Est. $2.94) 🟡; +5% YoY 🔹 Free Cash Flow: $2.5B (Est. $3.43B) 🔴 FY26 Guide: 🔹 Revenue Growth (CC): 4% to 5% (prior +5%) 🔴 🔹 Free Cash Flow:
@cnbcIBM lowers full-year forecast after earnings warning
@thetranscript_RT @TheTranscript_: IBM’s preliminary Q2 26 results fall short of its expectations CEO: "...we did not anticipate the magnitude of the cap…
@thetranscript_IBM lowers FY26 revenue growth outlook CEO: "...we faced revenue headwinds late in the second quarter..." $IBM: +3% AH
@cnbcIBM lowers full-year forecast after earnings warning
@wallstengine$IBM says software revenue will grow 6% to 8% in 2026, down from a prior forecast above 10%. Several delayed software deals have already closed in Q3, saying the demand was deferred rather than destroyed “Value will increasingly shift tow
@anissagardizy8NEW: IBM Lowers Its Growth Outlook as Sales of Data Center Mainframes Sink 42% When the company published its second-quarter earnings Wednesday, it confirmed the disappointing results that it previewed last week in a rare move that erased
@anissagardizy8In the second quarter, IBM failed to close “tens of deals,” which led to the disappointing results, CFO James Kavanaugh, said in an interview with The Wall Street Journal. Since then, the company has closed roughly a third of those deals,
@anissagardizy8IBM doesn’t expect supply chain constraints in the AI infrastructure market to improve in the near term. “Everyone in the industry is saying this will extend for a period of time,” Kavanaugh said.
@anissagardizy8RT @anissagardizy8: NEW: IBM Lowers Its Growth Outlook as Sales of Data Center Mainframes Sink 42% When the company published its second-q…