IBM · 10-Q · 2026Q2 · Full report
Software Product Demand
INTERNATIONAL BUSINESS MACHINES CORP · 2026-07-23 · Importance 54 · Surprise 40 · No source text
Software revenue increased 5.1% in the second quarter, supported by healthy growth in IBM’s approximately 80% recurring-revenue base. Hybrid Cloud revenue increased 11.2%, Data revenue increased 18.9%, and Transaction Processing declined 8.1% because of weaker IBM Z performance and changed customer buying patterns. Red Hat OpenShift annual recurring revenue exceeded $2 billion, while total Software ARR reached $24.6 billion, approximately $2 billion higher year over year.
Key facts
- Data revenue for the three months ended June 30, 2026: $1,782 million, up 18.9% as reported (18.4% adjusted for currency), reflecting contribution primarily from Confluent source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | — | Data revenue for the three months ended June 30, 2026: $1,782 million, up 18.9% as reported (18.4% adjusted for currency), reflecting… |