IBM · 10-Q · 2026Q2 · Full report
Hybrid Cloud and Data Growth
INTERNATIONAL BUSINESS MACHINES CORP · 2026-07-23 · Importance 60 · Surprise 40 · No source text
IBM’s six-month 2026 Hybrid Cloud revenue increased 12.1% year over year to $3.903 billion, while Data revenue increased 19.0% to $3.256 billion. Automation revenue rose 6.5% to $3.692 billion, and total Software revenue increased 7.9% to $14.813 billion. Transaction Processing revenue declined 1.8% to $3.963 billion, indicating weaker demand in that offering relative to IBM’s hybrid-cloud and data portfolios. The quarterly trend was also positive for Hybrid Cloud, up 11.2%, and Data, up 18.9%.
Key facts
- Hybrid Cloud (Red Hat) revenue for the three months ended June 30, 2026: $1,998 million, up 11.2% as reported (10.9% adjusted for currency) source
- OpenShift annual recurring revenue (ARR) is now over $2 billion source
- Hybrid Cloud revenue for the three months ended June 30, 2026: $1,998 million. source
- Data revenue for the three months ended June 30, 2026: $1,782 million. source
- IBM stated hybrid cloud and AI remain the two most consequential technologies for enterprise performance and that watsonx provides a portfolio for developing AI apps, managing data, and governing AI models and agents. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +11.6% | Hybrid Cloud revenue for the three months ended June 30, 2026: $1,998 million. |
| revenue | positive | realized | +10.4% | Data revenue for the three months ended June 30, 2026: $1,782 million. |
| revenue | positive | realized | +1.2% | Hybrid Cloud (Red Hat) revenue for the three months ended June 30, 2026: $1,998 million, up 11.2% as reported (10.9% adjusted for currency) |
| revenue | positive | probable | — | OpenShift annual recurring revenue (ARR) is now over $2 billion |