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IBM's Q2 revenue grows 1% with margin expansion; software and infrastructure gains offset declines.

Company Fundamentals
26 Sep 2026
Seeking Alpha
View Source
Bullish
IBM's Q2 revenue grows 1% with margin expansion; software and infrastructure gains offset declines.

IBM reported a modest 1% year-over-year revenue increase in Q2 despite a significant drop in IBM Z and transaction processing software sales. Operating earnings per share grew 5%, supported by expanded profit margins and maintained free cash flow guidance. Recurring software revenue accelerated to 8% growth, and the Distributed Infrastructure segment surged 37% with a record backlog. Early closure of delayed deals in Q3 suggests the revenue shortfall was due to timing, not lost demand. IBM trades at 18.44 times 2026 earnings with a 2.98% dividend yield, and the outlook remains positive as new offerings gain traction among major clients.

IBM's dividend yield stands at 2.98%, with the stock trading at 18.44 times 2026 earnings. For readers following the Technology sector, here is Pluang's market snapshot as of Sep 26, 2026 21:11 WIB: out of 150 US tech stocks priced on Pluang, 66 rose and 82 fell. Notable movers include BlackBerry Limited (BB) at USD 8.21 with a 5.96% decline, Okta, Inc. (OKTA) at USD 195.17 down 5.55%, and Microchip Technology Inc. (MCHP) at USD 78.69 up 5.36%, with typical hold times ranging from 44 to 64 days and buy order activity notably strong for MCHP at 87%.

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