IBM · 10-Q · 2026Q2 · Full report
Revenue Performance and Mix
INTERNATIONAL BUSINESS MACHINES CORP · 2026-07-23 · Importance 49 · Surprise 32 · No source text
IBM reported second-quarter 2026 revenue of $17.162 billion, up 1.1% from $16.977 billion, while six-month revenue increased 4.9% to $33.079 billion from $31.519 billion. Six-month Software revenue rose 7.9% to $14.813 billion, led by Hybrid Cloud at $3.903 billion, Automation at $3.692 billion and Data at $3.256 billion, while Transaction Processing declined 1.8% to $3.963 billion. Six-month Consulting revenue increased 2.1% to $10.599 billion, and Infrastructure revenue increased 1.9% to $7.161 billion despite a 7.4% second-quarter decline to $3.835 billion. Six-month geographic revenue increased 8.0% in Europe/Middle East/Africa to $10.876 billion, 3.9% in the Americas to $16.278 billion and 0.7% in Asia Pacific to $5.925 billion.
Key facts
- Total revenue for the six months ended June 30, 2026: $33,079 million, up 5.0% year-to-year source
- Annual recurring revenue (ARR) for Software: $24.6 billion, increased approximately $2 billion year to year source
- Revenue recognized during the six months ended June 30, 2026 that was included within the deferred income balance at December 31, 2025: $8.7 billion, primarily related to software and services. source
- Total revenue for the three months ended June 30, 2026: $17,162 million, up 1.1% year-to-year source
- Total revenue for the three months ended June 30, 2026: $17,162 million. source
- Total revenue for the six months ended June 30, 2026: $33,079 million. source
- Total Software revenue for the six months ended June 30, 2026: $14,813 million. source
- Net income for the three months ended June 30, 2026: $2,165 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +50.7% | Revenue recognized during the six months ended June 30, 2026 that was included within the deferred income balance at December 31, 2025:… |
| revenue | positive | realized | +44.8% | Total Software revenue for the six months ended June 30, 2026: $14,813 million. |
| revenue | positive | realized | +9.1% | Total revenue for the six months ended June 30, 2026: $33,079 million, up 5.0% year-to-year |
| revenue | positive | probable | +5.8% | Annual recurring revenue (ARR) for Software: $24.6 billion, increased approximately $2 billion year to year |
| revenue | positive | realized | +1.1% | Total revenue for the three months ended June 30, 2026: $17,162 million, up 1.1% year-to-year |
| revenue | positive | realized | +0.3% | Total reportable segments revenue for the three months ended June 30, 2026: $17,110 million; reconciliation shows total revenue from… |
| revenue | positive | realized | — | Total revenue for the three months ended June 30, 2026: $17,162 million. |
| revenue | positive | realized | — | Total revenue for the six months ended June 30, 2026: $33,079 million. |
| net_income | positive | realized | — | Net income for the three months ended June 30, 2026: $2,165 million. |