IBM · 10-Q · 2026Q2 · Full report
IBM Z Product Transition
INTERNATIONAL BUSINESS MACHINES CORP · 2026-07-23 · Importance 58 · Surprise 56 · No source text
IBM Z revenue decreased 42.0% in the second quarter, reflecting performance below expectations and comparison with the historically strong June 2025 z17 launch. The shortfall was concentrated in Transaction Processing and the associated software stack, as numerous large deals did not close on expected timelines. IBM stated that z17 remains its strongest mainframe program on record and that clients continue investing in the platform to modernize mission-critical workloads.
Key facts
- Within Infrastructure, IBM Z revenue decreased 42.0% for the three months ended June 30, 2026 (41.8% adjusted for currency) source
- Transaction Processing revenue for the three months ended June 30, 2026: $2,030 million, down 8.1% as reported (8.6% adjusted for currency), reflecting shortfall in IBM Z performance source
- Total revenue decline in the IBM Z-related sales-type leases reflects the z17 launch in June 2025 (note indicates reductions in revenue for estimated residual value less related unearned income on sales-type leases reflect the z17 launch) source
- The decrease in Financing segment profit was primarily driven by lower intercompany financing net other income for sales of returned leased equipment to Infrastructure reflecting IBM Z product cycle dynamics. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | negative | realized | -1.0% | Transaction Processing revenue for the three months ended June 30, 2026: $2,030 million, down 8.1% as reported (8.6% adjusted for… |
| revenue | negative | realized | — | Within Infrastructure, IBM Z revenue decreased 42.0% for the three months ended June 30, 2026 (41.8% adjusted for currency) |