Also IBM $IBM (+0,78%)
(NYSE: IBM) released its official financial results for the second quarter of 2026 .
Following the devastating news and the profit warning in the run-up to the earnings release (which had put the stock under noticeable pressure), investors were primarily focused on whether management could maintain its full-year outlook.
📊 Key Figures at a Glance (Q2 2026)
Total revenue:
$17.2 billion (+1% YoY; currency-adjusted).
Analysis: Slightly missed analysts’ expectations (~$17.8 billion prior to the profit warning), but is in line with the revised preliminary figures.
Earnings per Share (Adjusted EPS):
$2.93 (+5% YoY).
Analysis: Right on target with the reduced consensus estimate.
Free Cash Flow (FCF):
$2.5 billion for the quarter (just under $4.8 billion YTD).
🔍 Segment Performance
Software:
$7.8 billion (+5% YoY). Red Hat remains +11% the reliable growth driver.
Consulting:
$5.3 billion (flat / +1% cc). Some customers continue to postpone AI consulting projects or cut budgets.
Infrastructure:
$3.8 billion (-7% YoY). While mainframes (Z Systems) are struggling as they reach the end of their product cycle, Distributed Infrastructure (Power/Storage) with +37% and a backlog of $500 million.
🔮 Revised Full-Year Outlook for 2026 (Guidance)
Management, led by CEO Arvind Krishna, provided the bottom line investors were hoping for:
Revenue growth (FY 2026): Now projected at 4% to 5% (currency-adjusted).
Free cash flow: Is still projected to increase by approximately +1.0 billion USD compared to the previous year (target: ~$12 billion).
⚡ Jack’s Conclusion
Relief after the initial shock:
IBM is currently going through a phase in which enterprise customers are shifting spending from traditional consulting and software toward pure hardware and cloud infrastructure. Since the figures were in line with reduced expectations and the cash flow and the dividend remain unchanged, today’s report serves primarily to stabilize the stock price.