While other tech giants spend on AI data centers, Big Blue aims to keep selling mainframes and pour profits into quantum computing.
IBM CEO Arvind Krishna told CNBC that just 2% of IBM's software could be replaced with applications built with artificial intelligence models. The comments followed disappointing results, as customers prioritized spending on servers and storage rather than mainframe computers, leading to a decline in related software.
IBM (NYSE: IBM | IBM Price Prediction), which has been poorly run for decades, is on the ropes.
IBM's Q2 earnings met estimates, but delayed software deals and weaker mainframe sales drove a revenue miss and lower 2026 growth guidance.
IBM cuts its 2026 revenue growth outlook after delayed software deals, while early Q3 closures and infrastructure strength support a second-half rebound.
International Business Machines Corp (NYSE:IBM) shares were set to open about 2% lower on Thursday after the technology company reported second-quarter revenue and adjusted earnings that missed Wall Street expectations while lowering its full-year constant currency revenue growth forecast. For the quarter, IBM reported adjusted earnings per share of $2.93, below the $2.97 expected by analysts, while revenue rose 1% year-over-year to $17.16 billion, missing the LSEG consensus estimate of $17.58 billion.
The headline numbers for IBM (IBM) give insight into how the company performed in the quarter ended June 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
International Business Machines Corporation (IBM) Q2 2026 Earnings Call Transcript
Arvind Krishna says the enterprise tech giant's mindset still has ties to massive licensing deals of the past.
On Wednesday, IBM officially reported earnings and the news was as bad as everyone knew it would be.
International Business Machines NYSE: IBM said its second-quarter 2026 results fell short of expectations as some large software transactions slipped late in the period, prompting the company to lower its full-year revenue growth outlook while maintaining its free cash flow target.
IBM's official earnings report comes after a bruising profit warning last week.