Observed Signal · Jul 22, 2026 · Earnings Report · Source: CNBC Technology · Impact: 4/5 · Sentiment: Neutral
IBM Lowers 2026 Forecast After Q2 Earnings Miss
IBM reported second-quarter results on July 22, 2026 that fell short of LSEG consensus, and the company lowered its full-year 2026 revenue-growth forecast. Adjusted EPS was $2.93 versus $2.97 expected and revenue was $17.16 billion versus $17.58 billion expected. IBM said revenue grew 1% year‑over‑year and net income was $2.17 billion. Management now expects 4%–5% constant‑currency revenue growth for 2026 (down from a prior target above 5%), and reiterated plans for $1 billion in additional free cash flow. The company highlighted efforts to accelerate productivity via AI, introduced an internal AI coding tool called Bob, and signed a letter of intent related to a U.S. quantum chip foundry.
Quarterly earnings and a lowered full-year forecast from a major enterprise technology company can influence enterprise IT spending, AI investments, and broader market expectations; earnings reports from large tech vendors are high-impact for the tech sector.
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Key Takeaways & Evidence Grounding
- Adjusted EPS: $2.93 vs. LSEG consensus $2.97
- Revenue: $17.16 billion vs. LSEG consensus $17.58 billion; revenue grew 1% year over year
- IBM lowered its 2026 constant-currency revenue-growth guidance to 4%–5% (previously above 5%)
- Net income: $2.17 billion (or $2.30 per share), down from $2.19 billion a year ago
- IBM signed a letter of intent to build a U.S. quantum chip foundry and introduced the Bob AI coding tool (adopted by over 80,000 employees)
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