International Business Machines Corporation (IBM) Earnings Call Transcripts

International Business Machines Corporation's Latest Earnings Call - Q2 FY2026

In the second quarter of fiscal 2026, IBM reported a revenue growth of 1% and diluted operating earnings per share growth of 5%, falling short of expectations due to a shift in client spending priorities. Management has revised its full-year revenue growth guidance to a range of 4% to 5%, down from previous expectations, while maintaining its free cash flow target of approximately $1 billion. The company remains confident in its long-term growth opportunities, particularly in AI and cloud infrastructure, despite recent execution challenges.

Reported metrics

Guidance from management

IBM expects full-year revenue growth in the range of 4% to 5% and maintains its free cash flow target of approximately $1 billion. Software growth expectations have been revised to a range of 6% to 8%.

What management said

Thank you, Jim. Before we begin Q&A, I'd like to mention a couple of items. First, supplemental information is provided at the end of the presentation. And second, as always, I'd ask you to refrain from asking multipart questions. Operator, let's please open it up.

Amit, thanks for the question. Given that you use the word impressive, I'm going to ask Jim to address the impressive part first, and then I will address your question on the priorities.

What analysts pressed on

Analysts expressed concerns about the impact of deferred client spending on future revenue growth, questioning whether demand was truly deferred or destroyed. There were also inquiries regarding the performance of the data segment within software, which underperformed compared to other areas.

Main topics on the call

• Revenue Guidance Revision — IBM has revised its full-year revenue growth expectation to a range of 4% to 5%, down from previous guidance. Management stated, 'the low end of the revenue range appropriately reflects the current environment and is our...
• Software Revenue Dynamics — Software revenue grew 5% in the quarter, but organic revenue growth was flat due to a shift in client spending toward CapEx-sensitive areas. Management noted, 'the vast majority of our software business, about 80% of tha...
• Infrastructure Performance — Distributed Infrastructure achieved its best revenue growth on record at 37%, driven by AI adoption. Arvind Krishna highlighted that 'z17 is having the best refresh cycle in reported history.'
• AI and Quantum Computing Investments — IBM is aggressively investing in AI and quantum computing, with plans to invest over $10 billion in quantum over the next five years. Krishna stated, 'Quantum computing is no longer decades away. It is upon us, and we ar...

Read the full International Business Machines Corporation transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 125 International Business Machines Corporation earnings call transcripts on record, spanning January 21, 2020 to July 22, 2026. Based on this history, International Business Machines Corporation reports quarterly. The most recent call on file is dated July 22, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

IBM

Exchange

NYSE

Country

US

Sector

Information Technology

Industry

IT Services

Calls on record

125

First call

January 21, 2020

Most recent

July 22, 2026

Reporting cadence

quarterly