IBM Misses EPS Estimate, Still Sees Bright Spots Amid Revenue Growth

International Business Machines Corp. (IBM) has reported its second-quarter earnings results for 2026, revealing a slight dip in GAAP EPS and revenue growth.

The company's reported GAAP EPS came in at $2.30, down -2.54% year-over-year (YoY), while revenue reached $17.16B, up 1.09% YoY from the same period last quarter.

Despite missing its estimated EPS of $2.95 by a margin of 0.54%, IBM remains optimistic about its full-year constant currency revenue growth forecast, now predicting a range of four-to-five percent. Additionally, the company continues to expect free cash flow to increase by approximately $1 billion year-over-year.

This quarter's earnings results come on the heels of previous periods where IBM has consistently beaten estimates, including Q1 '26, where it reported EPS of $1.91, exceeding estimated EPS of $1.81 by 5.57%.