Jun 2026 (Q2 FY26) — Jul 22, 2026
International Business Machines Corporation Q2 FY26 — Software Shortfall, Mainframe Strength, and Maintained FCF Guidance
Read the full callInternational Business Machines (IBM) earnings
- Jun 2026
- Jun 2026 (Q2 FY26)
- Dec 2025
International Business Machines earnings: last reported Wed, 22 Jul 2026, for the quarter ended Jun 2026.
Reported
The figures, each with its period
Each figure keeps its basis and period; nothing is filled in.
| Metric | Value | Change | Basis | Period | Note |
|---|---|---|---|---|---|
| Revenue | 17,162 | +1.1% YoY | Quarterly, as filed | Quarter to Jun 2026 | Revenue from operations as filed. |
| Operating margin | Operating profit / revenue | Quarter to Jun 2026 | Not in the filed figures for the quarter to jun 2026. No older figure is substituted. | ||
| Net profit | 2,165 | −1.3% YoY | Quarterly, as filed | Quarter to Jun 2026 | Profit after tax as filed. |
Guidance
What management said, and what became of it
30 of 40 judged targets kept · 25 open · verdicts reflect calls analysed to Jun 2026.
| Target | Original wording | Said | Latest call | Verdict |
|---|---|---|---|---|
| Second-quarter operating pretax margin expansion | about 50 basis points | Mar 2026 | expanded adjusted EBITDA and operating pretax margins by 20 and 30 basis points, respectively | Missed |
| Full-year Automation segment revenue growth | low double digits | Dec 2025 | transaction processing revenue declining 9%, while data grew 18% and automation grew 3% | At Risk |
| Close of the Confluent acquisition | close by the middle of 2026 | Dec 2025 | Confluent, which we closed this past quarter, solves that directly. | Achieved |
10 of INTERNATIONAL BUSINESS MACHINES CORP's 65 targets were missed. See which ones, and which are quietly gone. The 3 above are the free sample; 62 more targets are in the full ledger.
Claimed
- Distributed Infrastructure revenue grew 37%, exiting the quarter with $500 million backlog, its highest on record.
- Software Annual Recurring Revenue (ARR) reached $24.6 billion, up 8% year-over-year, with 80% of software revenue being recurring.
- Mainframe z17 refresh cycle is at nearly 130% program-to-program, well ahead of prior cycles.
- Free cash flow guidance of growing by $1 billion for FY26 was maintained despite revenue shortfall.
- Operating pretax margin expanded by 30 basis points in Q2 FY26 and is expected to expand by 100 basis points for FY26.
Qualified
- Overall revenue grew 1% in Q2 FY26, falling short of expectations due to a shift in client spending priorities.
- Software revenue grew 5% (constant currency) with flat organic growth, impacted by large CapEx deals slipping.
- Transactional processing software revenue declined 9% in Q2 FY26.
- Infrastructure revenue declined 7% in Q2 FY26, with mainframe performance below expectations.
- Currency is expected to be a 1.5 point headwind to revenue growth in Q3 FY26.
Price
$236.39 +1.83% · +$4.25
Performance −16.0% 1Y
1Y: $281.28 on 17 Oct 2025 → $236.39. High $329.23 (2 Jun 2026), low $205.77 (22 Jul 2026).
- Previous close
- $232.14
- 52-week range
- $205.77 – $329.23
- One year
- −16.66%
Overview
- Symbol
- IBM
- Sector
- Information Technology
- Exchange
- US
- Currency
- USD
Guidance
What management said, and what became of it
30 of 40 judged targets kept · 25 open · verdicts reflect calls analysed to Jun 2026.
| Target | Original wording | Said | Latest call | Verdict |
|---|---|---|---|---|
| Second-quarter operating pretax margin expansion | about 50 basis points | Mar 2026 | expanded adjusted EBITDA and operating pretax margins by 20 and 30 basis points, respectively | Missed |
| Full-year Automation segment revenue growth | low double digits | Dec 2025 | transaction processing revenue declining 9%, while data grew 18% and automation grew 3% | At Risk |
| Close of the Confluent acquisition | close by the middle of 2026 | Dec 2025 | Confluent, which we closed this past quarter, solves that directly. | Achieved |
Claimed
- Distributed Infrastructure revenue grew 37%, exiting the quarter with $500 million backlog, its highest on record.
- Software Annual Recurring Revenue (ARR) reached $24.6 billion, up 8% year-over-year, with 80% of software revenue being recurring.
- Mainframe z17 refresh cycle is at nearly 130% program-to-program, well ahead of prior cycles.
- Free cash flow guidance of growing by $1 billion for FY26 was maintained despite revenue shortfall.
- Operating pretax margin expanded by 30 basis points in Q2 FY26 and is expected to expand by 100 basis points for FY26.
Qualified
- Overall revenue grew 1% in Q2 FY26, falling short of expectations due to a shift in client spending priorities.
- Software revenue grew 5% (constant currency) with flat organic growth, impacted by large CapEx deals slipping.
- Transactional processing software revenue declined 9% in Q2 FY26.
- Infrastructure revenue declined 7% in Q2 FY26, with mainframe performance below expectations.
- Currency is expected to be a 1.5 point headwind to revenue growth in Q3 FY26.
The full ledger
Open INTERNATIONAL BUSINESS MACHINES CORP’s full ledger
A free account opens 5 company ledgers a month. All 65 tracked commitments, with each call’s wording and source.
Call summaries
Mar 2025 (Q1 FY25) — Apr 23, 2025
International Business Machines Corporation Q1 FY25 — Strong Start Exceeding Expectations, Driven by Software and AI Traction
Read the full callEvery analysed call
International Business Machines earnings calls (IBM)
Financials
What the filings say
Net profit, year on year: −1% (quarter to jun 2026 against jun 2025).
| Line item | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|
| Sales | 14,968 | 17,553 | 14,541 | 16,977 | 16,331 | 19,686 | 15,917 | 17,162 |
| Interest | 429 | 424 | 455 | 510 | 492 | 478 | 473 | 486 |
| Profit before tax | -802 | 3,306 | 1,158 | 2,597 | 2,430 | 4,143 | 1,387 | 2,479 |
| Tax rate | 60.5% | 11.5% | 8.9% | 15.6% | 28.2% | −34.6% | 12.4% | 12.6% |
| Net profit | -330 | 2,914 | 1,055 | 2,194 | 1,744 | 5,600 | 1,216 | 2,165 |
| EPS ($ per share) | -0.36 | — | 1.14 | 2.36 | 1.87 | — | 1.30 | 2.30 |
| Line item | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|
| Equity capital | 55,151 | 55,895 | 56,556 | 57,319 | 58,343 | 59,643 | 61,380 | 63,318 |
| Reserves | 159,206 | 162,954 | 162,717 | 154,209 | 149,825 | 151,276 | 151,163 | 155,648 |
| Total liabilities | 106,452 | 131,202 | 135,244 | 113,005 | 105,222 | 112,628 | 109,783 | 119,139 |
| Fixed assets | 10,792 | 10,010 | 6,205 | 5,694 | 5,334 | 5,501 | 5,731 | 5,899 |
| Total assets | 123,382 | 152,186 | 155,971 | 132,001 | 127,243 | 135,241 | 137,175 | 151,880 |
| Line item | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|
| Cash from operations | 15,247 | 14,770 | 18,197 | 12,796 | 10,435 | 13,931 | 13,445 | 13,193 |
| Cash from investing | -4,913 | -26,936 | -3,028 | -5,975 | -4,202 | -7,070 | -4,937 | -10,302 |
| Cash from financing | -10,469 | 9,042 | -9,721 | -13,354 | -4,958 | -1,769 | -7,079 | -3,829 |
| Net cash flow | -630 | -3,290 | 5,361 | -6,718 | 1,032 | 5,101 | 1,071 | -520 |
| Capital expenditure | -3,395 | -2,286 | -2,618 | -2,062 | -1,346 | -1,245 | -1,048 | -1,091 |
| Free cash flow | 11,852 | 12,484 | 15,579 | 10,734 | 9,089 | 12,686 | 12,397 | 12,102 |
IBM revenue by segment
Consulting shrank from 34% to 31% of revenue over the last two years.
| Segment | Q3 FY2024 | Q4 FY2024 | Q1 FY2025 | Q2 FY2025 | Q3 FY2025 | Q4 FY2025 | Q1 FY2026 | Q2 FY2026 | YoY growth latest quarter |
|---|---|---|---|---|---|---|---|---|---|
| Software | 44% | 45% | 44% | 44% | 44% | 46% | 44% | 45% | +5.1% |
| Consulting | 34% | 29% | 35% | 31% | 33% | 27% | 33% | 31% | +0.2% |
| Infrastructure | 20% | 24% | 20% | 24% | 22% | 26% | 21% | 22% | -7.4% |
| Financing | 1% | 1% | 1% | 1% | 1% | 1% | 1% | 1% | +12.0% |
Share of consolidated revenue by quarter. Q4 is the fiscal year less its first three quarters.
See how segments are shifting across companies → Segment Shift
IBM operating KPIs by quarter
| KPI | Mar 2025 Q1 FY25 | Jun 2026 Q2 FY26 | Change vs prior quarter |
|---|---|---|---|
| Annual recurring revenue (ARR) OpenShift | $1.5BAnd OpenShift is now at $1.5 billion ARR, growing about 25%.Source: earnings call transcript | $2.2BOpenShift ARR is now $2.2 billion with strong growth, reflecting demand of our containerization and virtualization products, where we now have about $680 million of contracts signed since early 2024.Source: earnings call transcript | +46.7% |
| Annual recurring revenue (ARR) Software | $21.7BSoftware's annual recurring revenue grew to $21.7 billion, up 11% since last year.Source: earnings call transcript | $24.6BThis revenue grew nicely in the quarter, and our ARR was $24.6 billion, up 8% since last year.Source: earnings call transcript | +13.4% |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Revenue by region
Q2 FY2026 · share of revenue
- Americas 49%
- EMEA 33% ↑ 2 pt
- Asia Pacific 18% ↓ 1 pt
As IBM cuts its regions in its filings; they can nest, so they need not add to 100%.
Insider filings
77 filings between Nov 5, 2025 and Aug 26, 2026.
Open market
decisions to buy or sellPurchases
$417.2K
3 purchases by 3 insiders
Sales
$5.76M
1 sale by 1 insider
Compensation
not trading decisions- 7
- Award — granted as compensation
- 27
- Option exercise — converted options into shares
- 34
- Tax withheld — shares kept back by the company to cover tax
Also filed: 5 gifts.
Who traded
open market only| Insider | Bought | Sold | Last filing |
|---|---|---|---|
| Thomas Robert David | — | $5.76M | Aug 26, 2026 |
| FARR DAVID N | $304.0K | — | Jan 30, 2026 |
| Miebach Michael | $101.3K | — | Feb 25, 2026 |
| HOWARD MICHELLE J | $11.9K | — | Feb 25, 2026 |
Latest filings (50)
| Date | Insider | What | Shares | Value |
|---|---|---|---|---|
| Aug 26, 2026 | Thomas Robert David Senior Vice President | Sale | 25,000 | $5.76M |
| Jul 1, 2026 | Robinson Anne Senior Vice President | Option exercise | 1,412 | $0 |
| Jul 1, 2026 | Robinson Anne Senior Vice President | Tax withheld | 3,254 | $933.0K |
| Jul 1, 2026 | Robinson Anne Senior Vice President | Tax withheld | 781 | $223.9K |
| Jul 1, 2026 | Robinson Anne Senior Vice President | Option exercise | 5,883 | $0 |
| Jun 4, 2026 | Fehring Nicolas A. VP, Controller | Gift | 400 | $0 |
| Feb 25, 2026 | HOWARD MICHELLE J Director | Purchase | 50 | $11.9K |
| Feb 25, 2026 | Miebach Michael Director | Purchase | 434 | $101.3K |
| Feb 21, 2026 | LAMOREAUX NICKLE JACLYN Senior Vice President | Option exercise | 1,738 | $0 |
| Feb 21, 2026 | LAMOREAUX NICKLE JACLYN Senior Vice President | Tax withheld | 538 | $138.0K |
| Feb 21, 2026 | KRISHNA ARVIND Chairman, President & CEO | Tax withheld | 3,069 | $787.0K |
| Feb 21, 2026 | KAVANAUGH JAMES J Sr. VP and CFO | Tax withheld | 1,442 | $369.8K |
| Feb 21, 2026 | KRISHNA ARVIND Chairman, President & CEO | Tax withheld | 2,587 | $663.4K |
| Feb 21, 2026 | COHN GARY D Vice Chairman | Option exercise | 2,725 | $0 |
| Feb 21, 2026 | KAVANAUGH JAMES J Sr. VP and CFO | Option exercise | 3,575 | $0 |
| Feb 21, 2026 | KRISHNA ARVIND Chairman, President & CEO | Option exercise | 5,614 | $0 |
| Feb 21, 2026 | Thomas Robert David Senior Vice President | Option exercise | 3,116 | $0 |
| Feb 21, 2026 | COHN GARY D Vice Chairman | Tax withheld | 1,243 | $318.7K |
| Feb 21, 2026 | KAVANAUGH JAMES J Sr. VP and CFO | Option exercise | 2,877 | $0 |
| Feb 21, 2026 | KAVANAUGH JAMES J Sr. VP and CFO | Option exercise | 3,380 | $0 |
| Feb 21, 2026 | KAVANAUGH JAMES J Sr. VP and CFO | Tax withheld | 1,694 | $434.4K |
| Feb 21, 2026 | KRISHNA ARVIND Chairman, President & CEO | Option exercise | 6,123 | $0 |
| Feb 21, 2026 | COHN GARY D Vice Chairman | Option exercise | 2,246 | $0 |
| Feb 21, 2026 | LAMOREAUX NICKLE JACLYN Senior Vice President | Option exercise | 1,053 | $0 |
| Feb 21, 2026 | Fehring Nicolas A. VP, Controller | Option exercise | 632 | $0 |
| Feb 21, 2026 | KRISHNA ARVIND Chairman, President & CEO | Option exercise | 5,166 | $0 |
| Feb 21, 2026 | COHN GARY D Vice Chairman | Tax withheld | 1,444 | $370.3K |
| Feb 21, 2026 | LAMOREAUX NICKLE JACLYN Senior Vice President | Tax withheld | 888 | $227.7K |
| Feb 21, 2026 | LAMOREAUX NICKLE JACLYN Senior Vice President | Option exercise | 1,600 | $0 |
| Feb 21, 2026 | LAMOREAUX NICKLE JACLYN Senior Vice President | Tax withheld | 817 | $209.5K |
| Feb 21, 2026 | Fehring Nicolas A. VP, Controller | Tax withheld | 274 | $70.3K |
| Feb 21, 2026 | Fehring Nicolas A. VP, Controller | Option exercise | 540 | $0 |
| Feb 21, 2026 | Fehring Nicolas A. VP, Controller | Tax withheld | 201 | $51.5K |
| Feb 21, 2026 | Fehring Nicolas A. VP, Controller | Option exercise | 396 | $0 |
| Feb 21, 2026 | COHN GARY D Vice Chairman | Option exercise | 2,611 | $0 |
| Feb 21, 2026 | Fehring Nicolas A. VP, Controller | Tax withheld | 320 | $82.1K |
| Feb 21, 2026 | Thomas Robert David Senior Vice President | Option exercise | 2,631 | $0 |
| Feb 21, 2026 | Thomas Robert David Senior Vice President | Tax withheld | 1,329 | $340.8K |
| Feb 21, 2026 | COHN GARY D Vice Chairman | Tax withheld | 1,507 | $386.4K |
| Feb 21, 2026 | Thomas Robert David Senior Vice President | Tax withheld | 1,575 | $403.9K |
| Feb 21, 2026 | Thomas Robert David Senior Vice President | Option exercise | 2,667 | $0 |
| Feb 21, 2026 | Thomas Robert David Senior Vice President | Tax withheld | 1,349 | $345.9K |
| Feb 21, 2026 | KAVANAUGH JAMES J Sr. VP and CFO | Tax withheld | 1,792 | $459.5K |
| Feb 21, 2026 | KRISHNA ARVIND Chairman, President & CEO | Tax withheld | 2,814 | $721.6K |
| Feb 18, 2026 | LAMOREAUX NICKLE JACLYN Senior Vice President | Option exercise | 1,586 | $0 |
| Feb 18, 2026 | KRISHNA ARVIND Chairman, President & CEO | Tax withheld | 2,839 | $734.4K |
| Feb 18, 2026 | KRISHNA ARVIND Chairman, President & CEO | Option exercise | 5,664 | $0 |
| Feb 18, 2026 | KAVANAUGH JAMES J Sr. VP and CFO | Tax withheld | 1,363 | $352.6K |
| Feb 18, 2026 | KAVANAUGH JAMES J Sr. VP and CFO | Option exercise | 2,719 | $0 |
| Feb 18, 2026 | COHN GARY D Vice Chairman | Tax withheld | 1,285 | $332.4K |
Source: SEC Form 4 filings. Form 4 reports transactions, not the cap table — absence of filings says nothing about how much an insider owns, and a quiet window is not a signal.
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