IBM Corp (NYSE:IBM) posted financial results for the second quarter after the closing bell on Wednesday. Here’s a rundown of the report.
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IBM Q2 Highlights
IBM reported second-quarter revenue of $17.16 billion, beating the consensus estimate of $16.86 billion, according to Benzinga Pro. The company reported second-quarter adjusted earnings of $2.93 per share, beating analyst estimates of $2.86 per share.
Total revenue was up 1% on a year-over-year basis. Here’s a breakdown of revenue by category.
- Software: up 5% year-over-year
- Consulting: up 1% year-over-year
- Infrastructure: down 7% year-over-year
Cash flow from operations totaled $2.6 billion in the second quarter and free cash flow came in at $2.5 billion. IBM ended the period with $8.2 billion of cash, restricted cash and marketable securities.
“We are confident in IBM’s strategy and portfolio, and in our ability to capture growth opportunities ahead. We fundamentally believe that we are in the early innings of a structural shift for business, and that our portfolio — across software, infrastructure and consulting — is well-positioned to help our clients tap the value, and manage the challenges, of an AI-driven future,” said Arvind Krishna, chairman, president and CEO of IBM.
IBM’s board approved a quarterly cash dividend of $1.69 per share, payable on Sept. 10 to shareholders of record as of Aug. 10.
IBM expects full-year 2026 revenue of $70.24 billion to $70.91 billion versus estimates of $70.85 billion, representing constant currency revenue growth 4% to 5%. Free cash flow is expected to increase by about $1 billion year-over-year.
“We are taking action to accelerate our revenue growth and profitability, driving productivity across the company with AI and automation, and heavily investing in commercializing innovation at speed and scale,” Krishna said.
IBM Shares Rise After The Close
IBM Price Action: IBM shares were up 2.42% in after-hours, trading at $ 211.08 at the time of publication on Wednesday, according to Benzinga Pro.
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