IBM forecasts 2026 revenue growth of 4%-5%

IBM Corp

IBM Corp

IBM

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  • IBM cut its 2026 outlook to constant-currency revenue growth of 4%-5% following 2Q revenue growth of 1% that missed expectations.
  • Full-year Software growth forecast trimmed to 6%-8% after 2Q Software revenue rose 5% with flat organic growth.
  • Guidance reset followed late-June spending shifts as clients redirected capex to servers, storage, and memory, delaying tens of large software deals.
  • Infrastructure now seen growing low single digits, supported by strong demand in Power and Storage despite 2Q Infrastructure revenue down 7%.
  • IBM maintained its target to lift free cash flow by about $1 billion, backed by expected 100 bps operating pre-tax margin expansion.


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