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International Business Machines (IBM) Q2 2026 earnings results (second quarter 2026)
10-Q filed Jul 23, 2026
International Business Machines (IBM) reported revenue of $17.2B for the second quarter 2026 (Q2 2026), +1% from a year earlier and +8% from the quarter before. Operating margin was 14.4%, net earnings $2.2B (12.6% of revenue).
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 follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $17.2B | +8% | +1% |
| Gross profit | $9.9B | +11% | -0.7% |
| Operating profit | $2.5B | +79% | -5% |
| Net earnings | $2.2B | +78% | -1% |
| Operating cash flow | $2.6B | -50% | +53% |
| Free cash flow | $2.4B | -52% | +59% |
What changed
Revenue was $17.2B in Q2 2026, up 1% year over year and up 8% from the previous quarter. Sales was the largest line at 53% of revenue. Services added $0.24B year over year (up 3%), 132% of the total change. Sales declined 1%.
Gross margin was 57.7%, down 1.0 points from Q2 2025. Operating profit was $2.5B, a 14.4% margin (down 0.9 points year over year). Operating profit fell $0.12B even though revenue rose $0.18B versus Q2 2025, so costs grew faster than sales. Operating expenses grew 1% against revenue growth of 1%. The fastest-growing cost line was Research & development (+10%). Net earnings were $2.2B, down 1% year over year. The effective tax rate was 12.6%.
Operating cash flow was $2.6B (up 53% year over year), 120% of net earnings. Non-cash charges added back $1.3B of depreciation and amortization and $0.50B of share-based compensation. Working capital and other items used $1.4B. Capital expenditures of $0.23B left free cash flow of $2.4B.
Questions
What was International Business Machines' revenue in the second quarter 2026?
International Business Machines (IBM) reported revenue of $17.2B for the second quarter 2026 (Q2 2026), +1% from a year earlier and +8% from the quarter before.
Was International Business Machines profitable in the second quarter 2026?
Operating profit was $2.5B (14.4% of revenue) and net earnings $2.2B.