IBM lowers full-year forecast after earnings warning
IBM on Wednesday lowered its 2026 full-year growth forecast and reported quarterly earnings that missed analyst expectations, even after a rare earnings warning last week. The company posted adjusted earnings per share of $2.93 versus $2.97 expected, and revenue of $17.16 billion versus $17.58 billion expected. Revenue grew just 1% year-over-year. CEO Arvind Krishna cited worse-than-expected sales of Z mainframe computers and transaction processing software. IBM's high-margin software segment grew 5% to $7.76 billion, while consulting was flat and infrastructure revenue declined 7%, with Z mainframe revenue falling 42%. Despite the miss, shares rose 4% in extended trading. IBM is accelerating productivity through AI, including a new coding tool called Bob adopted by over 80,000 employees. The company also reiterated expectations for $1 billion in higher free cash flow for the year.
Editorial responsibility
- No named human review is recorded for this page.
- Reports are grouped by semantic similarity and deterministic rules. Language models may assist titles, summaries, translation and cross-source analysis; the page itself is projected from evidence records.
- Current automated evidence projection