IBM Software Growth Slows Amid Customer Spending Shift

IBM's software business showed slower momentum in its second quarter of 2026. The company reported a 5% year-over-year increase in software revenues to $7.8 billion, but organic revenue growth was flat.

The weakness was primarily in the Transaction Processing business, which saw an 8% decline in revenue compared to the same period last year.

IBM attributed this shortfall to customers shifting their capital spending towards servers, storage, and memory to secure supply-constrained infrastructure ahead of anticipated price increases.