IBM Lowers Revenue Outlook for 2026 Following Q2 Earnings Miss
IBM has revised its full-year revenue forecast downward after reporting second-quarter results that missed analyst expectations. The company now expects constant-currency revenue growth of between 4% and 5%, down from a previous target above 5%. Despite the earnings miss, IBM maintained its guidance for free cash flow to increase by approximately $1 billion year over year. Q2 revenue came in at $17.16 billion, up slightly from last year but below expectations of $17.58 billion. Adjusted earnings per share were reported at $2.93 versus a forecast of $2.97. The software segment showed strength with 5% growth to $7.76 billion, while the consulting business remained flat and infrastructure revenue fell by 7%, largely due to declining mainframe sales. IBM's leadership emphasized continued investment in AI-driven productivity gains and financial discipline amid a challenging market environment.
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Topics: AI strategy IBM Q2 earnings miss revenue guidance cut