IBM Cuts 2026 Revenue Outlook to 4%-5% After Q2 Revenue Misses $17.26B Estimate

According to Fiscal.ai, IBM reported second-quarter revenue of $17.16 billion on Wednesday, missing the $17.26 billion consensus estimate as infrastructure sales declined 7% year-over-year. The company also trimmed its 2026 constant-currency revenue growth guidance to 4%-5%, down from its prior forecast of more than 5%.

IBM attributed the infrastructure shortfall to delayed closures of large deals rather than weakening customer demand. CEO Arvind Krishna stated that the company remains well-positioned for an AI-driven future, noting that AI is driving incremental capacity growth and new workloads for clients seeking to run AI closer to sensitive data.