IBM Q2 revenue $17.2B misses estimate as shares drop 17%

Business Jul 14, 2026

IBM announced preliminary Q2 revenue of $17.2 billion, which fell short of Wall Street's $17.86 billion estimate.

This shift reflects how tech companies are now pouring more money into AI infrastructure instead of old-school software.

The news hit IBM hard, with shares dropping 17% in premarket trading on Tuesday.

CEO Arvind Krishna admits deal delays

IBM also cut its earnings outlook, now aiming for $2.93 per share versus the predicted $3.02.

CEO Arvind Krishna admitted that adapting quickly to these new priorities has been tough, causing delays with big deals.

He noted that the company had faltered in adapting to evolving market conditions, and that numerous large deals did not close.