Form 10-Q · Quarterly report
IBM 10-Q, filed Jul 23, 2026
- Filed
- CIK
- 0000051143
- Accession no.
- 0000051143-26-000078
Summary
IBM reported second-quarter 2026 revenue of $17.2 billion, up 1.1% from a year earlier, with income from continuing operations of $2.2 billion and operating (non-GAAP) earnings per share of $2.93. Management said the quarter was below its expectations, attributing most of the shortfall to large deals failing to close in the final weeks of June as clients shifted spending toward supply-constrained servers, storage and memory, and to weaker IBM Z performance in Transaction Processing software.
Key points
- Reported diluted earnings per share from continuing operations were $2.27, down 1.7% year over year, versus $2.93 on an operating (non-GAAP) basis, up 4.6%.
- Software revenue grew 5.1% as reported, Consulting was flat, and Infrastructure revenue fell 7.4%; Distributed Infrastructure revenue rose 37%, described as its strongest quarter on record.
- Gross margin was 57.7%, down 1.0 point year over year, and pre-tax income from continuing operations fell 4.5% to $2.5 billion.
- IBM generated $2.6 billion in cash from operations, $2.5 billion in free cash flow, and returned $1.6 billion to shareholders in dividends.
Written by an AI model from the filing text. It can be incomplete or wrong; the filing on SEC.gov is the record.
From the filing
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 Snapshot Organization of Information: The Management Discussion is designed to provide readers with an overview of the business and a narrative on our financial results and certain factors that may affect our future prospects from the perspective of management. Within the tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts. …
An excerpt of the text as filed with the SEC, cut for length.
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