IBM's Second Quarter Net Income Falls 1.3%
IBM reported its second fiscal quarter 2026 results. The company's net income decreased by 1.3% year-over-year, while revenue saw a slight increase.
IBM announced its financial results for the second fiscal quarter of 2026, which covers the period from April to June. The company reported a net income attributable to the parent company of $2.165 billion, a decrease of 1.3% compared to the same period in the previous year.
Total revenue, however, showed a slight increase of 1.09%, reaching $17.162 billion. Gross profit decreased by 0.70% to $9.907 billion, and the gross margin declined by 1.1 percentage points to 57.7%.
The company's operating cash flow saw a significant increase of 52.67%, amounting to $2.597 billion. Free cash flow, however, decreased by 10% to $2.54 billion. Earnings per share (EPS) saw a decline on both a basic and diluted basis.
Highlights from the report included growth in the software segment, with Red Hat-related business up 11% and data-related business up 19%. IBM also raised its full-year revenue growth forecast. The company plans to invest over $10 billion in quantum computing over the next five years.