IBM Cuts Full-Year Sales Outlook After Mainframe Demand Drops
Guidance·4 articles across 4 outlets
Story updated Rewritten when the story materially grows; the wire is checked every 15 minutesAbout this data
IBM has lowered its full-year sales outlook following a significant dip in demand for its mainframe business. The company's Q2 revenue increased by 1% year-over-year to $17.2 billion, but fell short of the $17.6 billion estimate, with mainframe revenue down 42% and infrastructure revenue down 7%.
The preliminary earnings release had already set lower expectations for the results, leading to a historic drop in IBM's stock. Analysts had projected thinner quarterly profits, prompting the company to revise its 2026 forecast downward.
IBM
Sources
Every quote below is verbatim from the article it is attributed to.
SourceReports the news
“International Business Machines Corp.”
Bloomberg — IBM Cuts Full-Year Sales Outlook as Mainframe Demand Drops“IBM's Q2 prerelease for results last week had already lowered expectations for Wednesday's results.”
IBD — IBM Cuts Revenue Guidance After Preliminary Earnings Release Cratered Stock“IBM Cuts Revenue Outlook Following Historic Stock Drop”
Barron's — IBM Cuts Revenue Outlook Following Historic Stock Drop“Jordan Novet / CNBC: IBM reports Q2 revenue up 1% YoY to $17.2B, vs.”
techmeme — IBM reports Q2 revenue up 1% YoY to $17.2B, vs. $17.6B est., infrastructure revenue down 7% to $3.8B, Z mainframe revenue down 42%, and lowers its 2026 forecast (Jordan Novet/CNBC)