IBM reports Q2 results in-line with lowered guidance last week; lowers FY26 CC revenue growth guidance to +4-5%
- Reports Q2 (Jun) earnings of $2.93 per share, excluding non-recurring items, $0.02 worse than the FactSet Consensus of $2.95; revenues rose 1.1% year/year to $17.16 bln vs the $17.46 bln FactSet Consensus.
- Note: Q2 results were in-line with guidance last week at $2.93 and $17.2 bln, respectively.
- By Segment:
- Software — revenues of $7.8 bln, up 5% CC.
- Consulting — revenues of $5.3 bln, flat, up 1% CC.
- Infrastructure — revenues of $3.8 bln, down 7% CC.
- Areas of IBM's software business that help clients manage, deploy and build AI-ready solutions, like Red Hat, the watsonx portfolio, HashiCorp, and Confluent continue to deliver strong performance. Within Distributed Infrastructure, Power and Storage grew at a record pace in the second quarter, now having built up an order backlog of nearly $500 mln.
- Co lowers FY26 constant currency revenue growth guidance to +4-5% CC from prior guidance of "more than +5% CC."
- Co reaffirms FY26 free cash flow to increase by about $1 bln from 2025.