Filing Flows › International Business Machines (IBM) › Q2 2026 › vs Q2 2025
International Business Machines (IBM) Q2 2026 vs Q2 2025 (year over year)
International Business Machines's revenue rose $185M (+1%) from $17.0B in Q2 2025 to $17.2B in Q2 2026. The biggest changes: Services +$245M (+3%); Sales −$80.0M (-0.9%); Financing +$20.0M (+12%). Gross margin 57.7% against 58.8% (-1.0 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 Q2 2025, the increases inside each band.
Margins
| Q2 2026 | Q2 2025 | Change | |
|---|---|---|---|
| Gross margin | 57.7% | 58.8% | -1.0 pts |
| Operating margin | 14.4% | 15.3% | -0.9 pts |
| Net margin | 12.6% | 12.9% | -0.3 pts |
| Free cash flow margin | 13.8% | 8.8% | +5.0 pts |
Every line
| Line | Q2 2026 | Q2 2025 | Change | % |
|---|---|---|---|---|
| Sales | $9.0B | $9.1B | −$80.0M | -0.9% |
| Services | $7.9B | $7.7B | $245M | +3% |
| Financing | $186M | $166M | $20.0M | +12% |
| Revenue | $17.2B | $17.0B | $185M | +1% |
| Gross profit | $9.9B | $10.0B | −$70.0M | -0.7% |
| Cost of revenue | $7.3B | $7.0B | $255M | +4% |
| Operating profit | $2.5B | $2.6B | −$118M | -5% |
| Operating expenses | $7.4B | $7.4B | $48.0M | +0.7% |
| Pre-tax earnings | $2.5B | $2.6B | −$118M | -5% |
| Research & development | $2.3B | $2.1B | $214M | +10% |
| SG&A | $5.0B | $5.0B | −$46.0M | -0.9% |
| Other operating costs | $136M | $256M | −$120M | -47% |
| Net earnings | $2.2B | $2.2B | −$29.0M | -1% |
| Income tax | $313M | $404M | −$91.0M | -23% |
| Depreciation & amortization | $1.3B | $1.3B | $84.0M | +7% |
| Share-based compensation | $498M | $441M | $57.0M | +13% |
| Working capital & other | $1.4B | $2.2B | −$784M | -36% |
| Operating cash flow | $2.6B | $1.7B | $896M | +53% |
| Free cash flow (OCF − capex) | $2.4B | $1.5B | $877M | +59% |
| Capital expenditures | $229M | $210M | $19.0M | +9% |
Questions
How much did International Business Machines's revenue grow year over year in Q2 2026?
International Business Machines's revenue rose $185M (+1%) from $17.0B in Q2 2025 to $17.2B in Q2 2026.
What drove International Business Machines's revenue change in Q2 2026?
Services +$245M (+3%); Sales −$80.0M (-0.9%); Financing +$20.0M (+12%).