International Business Machines Corp

IBM: XNYS (USA)

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IBM: Mainframe-Led Soft Q2 Performance Should Not Change Company's Long-Term AI Positioning

Luke Yang

Jul 14, 2026

IBM's preliminary second-quarter results showed total revenue of $17.2 billion and GAAP earnings per share of $2.27, both of which fell short of expectations. The year-over-year growth of software (5%) and infrastructure (negative 7%) this quarter was 600 basis points below our original forecasts.

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International Business Machines Corp

IBM: Mainframe-Led Soft Q2 Performance Should Not Change Company's Long-Term AI Positioning

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