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How IBM makes money: Q2 2026 revenue breakdown
US GAAP · $M · vs Q2 2025 · reported 07/22/2026
IBM — International Business Machines Corporation, doing business as IBM, is an American multinational technology company headquartered in Armonk, New York, and present in over 175 countries. · Wikipedia
More about the company
It is a publicly traded company and one of the 30 companies in the Dow Jones Industrial Average. IBM is the largest industrial research organization in the world, with 19 research facilities across a dozen countries; for 29 consecutive years, from 1993 to 2021, it held the record for most annual U.S. patents generated by a business.
Key growth driver: Software — the fastest-growing revenue line: $7,761, +5% y/y. · by the Q2 2026 report
How does IBM make money?
IBM brought in $17.2 billion of revenue in Q2 2026, up 1.1% year over year. The largest source was Software: $7.76 billion, or 45% of the total, followed by Consulting ($5.33B, 31%) and Infrastructure ($3.83B, 22%); other lines add the remaining 1%. Net income for the quarter was $2.17 billion, down 1.3% year over year.
Revenue by source, Q2 2026
- Software$7.76B · 45% · +5.1%
- Consulting$5.33B · 31% · +0.2%
- Infrastructure$3.83B · 22% · −7.4%
- Financing$186M · 1% · +12.2%
- Other$53.0M · 0.3%
Shares of $17.2B total revenue; changes are year over year, as reported. ≈ marks lines derived from disclosed totals. The same flows are drawn in the Sankey chart below.
When is IBM’s next earnings date?
Wednesday, October 21, 2026confirmed · after market close
IBM is scheduled to report results for the quarter ending Sep 2026 on Oct 21, 2026. Consensus EPS forecast: $2.90 (6 analysts), vs $2.65 in the same quarter last year.
What time does IBM report? Usually after market close: the last 4 results releases reached the SEC at 4:10 pm, 7:01 am, 4:10 pm, 4:10 pm ET.
Last report: Jul 22, 2026 (Q2 2026) — broken down in the Sankey chart below. Dates and consensus: Nasdaq / Zacks Investment Research; companies do reschedule. Who else reports this week →
All figures in $M.
Revenue
$17,162
+1.1%
Gross margin 57.7% (−1.0pt)
Gross profit
$9,907
−0.7%
57.7% margin
Operating income
$2,479
−4.5%
Net income
$2,165
−1.3%
EPS diluted $2.27 · 12.6% margin
Verdict: a soft quarter for IBM as Software growth (+5%, led by Red Hat +11%) and Financing gains were offset by an Infrastructure slump (IBM Z −42%) and rising R&D/SG&A pressure, leaving gross margin down 1.0pt and GAAP net income down 1% despite flat revenue growth of +1%.
OCF $2,597M (+$896M y/y); FCF $2,540M (−$305M y/y); $1,590M dividends paid; FY26 guide: 4-5% constant-currency revenue growth, FCF up ~$1B y/y, pre-tax margin expansion.
Source and notation
* marks non-cash / ≈ estimated. Source: IBM press release / 10-Q (SEC EDGAR).
Open the chart as a PNG image ↗ · for sharing and presentations · free to reuse, CC BY 4.0
IBM earnings history: past report dates
| Jul 14, 2026 Tue | 7:01 ambefore market open | Jun 30, 2026 | $17.2B+1% y/y | $2.27−2% y/y |
| Apr 22, 2026 Wed | 4:10 pmafter market close | Mar 31, 2026 | $15.9B+9% y/y | $1.28+14% y/y |
| Jan 28, 2026 Wed | 4:10 pmafter market close | Dec 31, 2025 | ≈$19.7B+12% y/y | ≈$5.90+90% y/y |
| Oct 22, 2025 Wed | 4:13 pmafter market close | Sep 30, 2025 | $16.3B+9% y/y | $1.84 |
| Jul 23, 2025 Wed | 4:16 pmafter market close | Jun 30, 2025 | $17.0B+8% y/y | $2.31+18% y/y |
| Apr 23, 2025 Wed | 4:12 pmafter market close | Mar 31, 2025 | $14.5B+1% y/y | $1.12−35% y/y |
| Jan 29, 2025 Wed | 4:16 pmafter market close | Dec 31, 2024 | ≈$17.6B+1% y/y | ≈$3.11−13% y/y |
| Oct 23, 2024 Wed | 4:12 pmafter market close | Sep 30, 2024 | $15.0B+1% y/y | −$0.36 |
How we count
Report date and time — when the company filed its results press release with the SEC (Form 8-K, Item 2.02); the regular session runs 9:30 am – 4:00 pm ET. Revenue and diluted EPS — the company’s XBRL filings, EPS adjusted for stock splits; ≈ — fourth quarter derived as full year minus three quarters. Source: SEC EDGAR.
IBM: 5-year financials
| 2025 | 67,535 | 10,593 | 12,102 | 6,255 |
| 2024 | 62,753 | 6,023 | 12,397 | 6,147 |
| 2023 | 61,860 | 7,502 | 12,686 | 6,040 |
| 2022 | 60,530 | 1,639 | 9,089 | 5,948 |
| 2021 | 57,350 | 5,743 | 10,734 | 5,869 |
$ millions, annual 10-K reports on SEC EDGAR (US GAAP).
How we calculate
Figures are the annual report lines as filed, no adjustments. Free cash flow is operating cash flow minus capital expenditures; dividends are cash paid to common shareholders during the year. “—” means the line isn’t in the filing.
Corporate governance
2/2good
How the company treats minority shareholders: 2 — well, 0 — systematically poorly.
More
- Feb 2026IBM's 2025 annual report (part of the 10-K) lists only an ERISA pension suit, closed in December 2025, among significant cases; no shareholder suits or SEC cases; one class of shares outstanding. sec.gov ↗
- Jun 2023Two class actions alleging mainframe revenue was “shifted” into strategic imperatives (2022 and 2023) were voluntarily dismissed by the plaintiffs. sec.gov ↗
- Dec 2025Diluted share count 2020→2025 +5.8%; dividend $6.51 → $6.71 per share (XBRL 10-K). data.sec.gov ↗
Scoring: 2.0, no deductions: the 2022–2023 suits were withdrawn by plaintiffs; the 2007 SEC order is older than 15 years and not counted
- Share classes
- Single class of common stock; Series A preferreds were issued only to a subsidiary and are not outstanding.
- Dilution
- Diluted share count 2020→2025 +5.8% (<10%); SBC 2.5%; buybacks suspended since 2019 (Red Hat).
- Disclosure
- 10-Ks and 10-Qs filed on time, audited US GAAP financials; no deduction.
- Dividends
- Dividend raised every year: $6.51 (2020) → $6.71 (2025).
- Lawsuits & regulators
- The 2022 and 2023 suits over classification of 'strategic imperatives' revenue were voluntarily withdrawn; the ERISA pension suit closed with no material effect; the 2007 SEC order is older than 15 years and not counted.
- Related parties
- No non-arm's-length related-party transactions.
How the score works · checked as of Sep 2026
IBM earnings: FAQ
How does IBM make money?
IBM brought in $17.2 billion of revenue in Q2 2026, up 1.1% year over year. The largest source was Software: $7.76 billion, or 45% of the total, followed by Consulting ($5.33B, 31%) and Infrastructure ($3.83B, 22%); other lines add the remaining 1%. Net income for the quarter was $2.17 billion, down 1.3% year over year.
When is IBM's next earnings date?
IBM (IBM) is scheduled to report on Oct 21, 2026, after market close.
What time does IBM report earnings?
IBM is scheduled to report after market close on Oct 21, 2026. Its last results releases were filed after market close, most recently at 4:10 pm ET on Jul 22, 2026.
When did IBM last report earnings?
IBM reported Q2 2026 results on Jul 22, 2026.
What is the EPS estimate for IBM's next earnings?
The consensus EPS forecast is $2.90 (6 analysts), vs $2.65 in the same quarter last year.
Where can I find IBM's financial statements?
On SEC EDGAR: quarterly reports (10-Q), the annual report (10-K) and earnings releases (8-K). The “Verified” badge next to the chart links to IBM's filings; this page breaks the latest report down in a Sankey chart.
What was IBM's net income in Q2 2026?
IBM reported net income of $2,165M for Q2 2026 (−1.3% year over year), under US GAAP.
Does IBM pay dividends?
Yes. In 2025, IBM paid $6,255M in dividends on its common stock, per its 10-K. Earlier years are in the five-year table above.
New to earnings reports? Start with how to read an earnings report.
How this page was made: the figures come from the company's own report on SEC EDGAR; the summary and nuances were drafted by our model from that report. Figures checked against the filing on 08/25/2026. How we make the breakdowns · Report an error
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