IBM's second quarter 2026 revenue grew 1% to $17.2 billion, with Infrastructure weakness offsetting Software growth.

IBM reported preliminary second quarter 2026 revenue of $17.2 billion, up 1% year-over-year, and operating (non-GAAP) EPS of $2.93, a 5% increase. The results reflect a mixed performance across segments, with Software revenue growing 5% while Consulting was flat and Infrastructure declined 7%.

Key Highlights

• Software revenue grew 5%, with revenue growth from Red Hat accelerating sequentially to 11%.
• Infrastructure revenue declined 7%, which the company attributed to a shortfall in Z mainframe performance and a shift in client capex priorities towards other hardware.
• Despite the overall segment decline, Distributed Infrastructure revenue grew 37%, its best performance in reported history, ending the quarter with a backlog of approximately $500 million.