IBM reduced its full-year revenue growth forecast to 4-5% after reporting $17.16 billion in Q2 revenue, below expectations.
IBM reported second-quarter adjusted earnings of $2.93 per share on revenue of $17.16 billion, missing analysts’ estimates of $2.97 and $17.58 billion, respectively. The company cited weaker-than-expected sales of Z mainframe computers and transaction processing software.
Revenue grew just 1% year over year, while net income fell to $2.17 billion from $2.19 billion in the same period last year. IBM now expects 4% to 5% constant-currency revenue growth for 2026, down from its prior forecast of over 5%.
Shares rose 4% in extended trading after initially plunging 25% following an earnings warning last week. The stock has declined 30% year-to-date, underperforming the broader market.