IBM Misses Q2 Expectations Amid Delayed Deals and Weaker Z Performance

IBM released preliminary second-quarter results on July 14, revealing revenue of $17.2 billion for the quarter ended June 30, up 1% from a year earlier.

The company attributed its miss to delayed large customer deals and weaker-than-expected performance in its Z mainframe franchise, which left it below its own expectations.

Infrastructure revenue fell 7%, while software revenue rose 5% year over year, with Red Hat growing 11% sequentially. Consulting revenue was flat, or up 1% at constant currency.

Arvind Krishna, IBM's chairman, president and chief executive, said the company had not moved quickly enough in rapidly evolving cybersecurity concerns, which distracted clients during the quarter.