IBM Quantum

IBM reported Q2 2026 revenue of $17.2 billion, up 1% year-over-year; flat at constant currency amid late-quarter headwinds. GAAP net income was $2.2 billion ($2.27 diluted EPS), down 1% YoY. Pre-tax margin declined 90 basis points to 14.4%. Software revenue grew 5% to $7.8B, led by Hybrid Cloud (Red Hat, +11%) and Data (+19%); Consulting flat at $5.3B; Infrastructure down 7% to $3.8B, though Distributed Infrastructure surged 37% with a $500M order backlog. Free cash flow was $2.5B, down slightly despite higher operating cash flow. The company updated full-year guidance to 4–5% constant currency revenue growth and maintained expectations for ~$1B free cash flow increase. Management highlighted accelerating AI adoption in enterprise, expansion of sales coverage, investment in specialized talent, and new security capability Lightwell, while committing $10B+ to quantum computing over five years.