Filing Flows › International Business Machines (IBM) › Q2 2026 › vs Q1 2026
International Business Machines (IBM) Q2 2026 vs Q1 2026 (quarter over quarter)
International Business Machines's revenue rose $1.2B (+8%) from $15.9B in Q1 2026 to $17.2B in Q2 2026. The biggest changes: Sales +$1.0B (+13%); Services +$239M (+3%); Financing −$34.0M (-15%). Gross margin 57.7% against 56.2% (+1.5 pts).
International Business Machines, Q2 2026: revenue $17.2B (+1% year over year), operating margin 14.4%, net earnings $2.2B, operating cash flow $2.6B. The chart draws each line against Q1 2026, the increases inside each band.
Margins
| Q2 2026 | Q1 2026 | Change | |
|---|---|---|---|
| Gross margin | 57.7% | 56.2% | +1.5 pts |
| Operating margin | 14.4% | 8.7% | +5.7 pts |
| Net margin | 12.6% | 7.6% | +5.0 pts |
| Free cash flow margin | 13.8% | 31.0% | -17.2 pts |
Every line
| Line | Q2 2026 | Q1 2026 | Change | % |
|---|---|---|---|---|
| Sales | $9.0B | $8.0B | $1.0B | +13% |
| Services | $7.9B | $7.7B | $239M | +3% |
| Financing | $186M | $220M | −$34.0M | -15% |
| Revenue | $17.2B | $15.9B | $1.2B | +8% |
| Gross profit | $9.9B | $8.9B | $957M | +11% |
| Cost of revenue | $7.3B | $7.0B | $288M | +4% |
| Operating profit | $2.5B | $1.4B | $1.1B | +79% |
| Operating expenses | $7.4B | $7.6B | −$135M | -2% |
| Pre-tax earnings | $2.5B | $1.4B | $1.1B | +79% |
| Research & development | $2.3B | $2.2B | $138M | +6% |
| SG&A | $5.0B | $5.1B | −$108M | -2% |
| Other operating costs | $136M | $301M | −$165M | -55% |
| Net earnings | $2.2B | $1.2B | $949M | +78% |
| Income tax | $313M | $172M | $141M | +82% |
| Depreciation & amortization | $1.3B | $1.3B | $75.0M | +6% |
| Share-based compensation | $498M | $506M | −$8.0M | -2% |
| Working capital & other | $1.4B | −$2.2B | $3.6B | — |
| Operating cash flow | $2.6B | $5.2B | −$2.6B | -50% |
| Free cash flow (OCF − capex) | $2.4B | $4.9B | −$2.6B | -52% |
| Capital expenditures | $229M | $232M | −$3.0M | -1% |
Questions
How much did International Business Machines's revenue grow quarter over quarter in Q2 2026?
International Business Machines's revenue rose $1.2B (+8%) from $15.9B in Q1 2026 to $17.2B in Q2 2026.
What drove International Business Machines's revenue change in Q2 2026?
Sales +$1.0B (+13%); Services +$239M (+3%); Financing −$34.0M (-15%).