IBM (IBM) Prelim Q2 (USD): Adj. EPS 2.27 (exp. 3.02), Revenue 17.2bln (exp. 17.9bln), Non-GAAP gross profit margin 59.4%, -0.7%
Newsquawk Staff ·
- When we discussed our expectations with you in April, we noted that we would be wrapping on the launch of z17 in the second quarter.
- Given this was the strongest start to a mainframe program in our history, we expected Infrastructure revenue to decline low-single digits for the year, beginning this quarter.
- What played out was worse than our expectations, driven by a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing.
- In the last few weeks of June, we saw clients shift their quarterly capex spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases. This dynamic impacted client buying patterns. While we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritisation.
- In addition, clients were distracted with rapidly-evolving, industry-wide cybersecurity concerns in the quarter.
- Remain on track to deliver the first large-scale fault-tolerant quantum computer by 2029.
- Undertaking new initiatives and accelerating others, all to improve our results going forward.
Sources
- The Trump administration plans to introduce voluntary “US Caught Seafood” labels to help consumers identify seafood origins, according to CBS
- Newsquawk Weekly Economic Release 26th - 30th October 2026
- Newsquawk European Market Wrap - 23rd October 2026
- US EQUITY OPEN: Breadth poor at the open: Energy leads gains on oil rally, Tech sees slight bounce
- Daily US Equity Opening News: SPCX explores access to 80K US cell sites; OpenAI nears USD 30bln funding at $1.25T valuation
Related headlines
- US President Trump expected to remove some tariffs on Canada in a bid to help Senator Susan Collins, WSJ reports1 hour ago
- US President Trump says they are "very close" to a deal with Mexico. Canada is working hard to make a deal.4 hours ago
- US President Trump says "we could end the Iran war very quickly", adds "do we want to finish it or let it within is the question"4 hours ago
- US Midterm Preview: Democrats Favoured to Flip the House, Senate Too Close to Call6 hours ago
- CRUDE WRAP: WTI (Z6) SETTLES USD 3.80 HIGHER AT USD 103.27/BBL; BRENT (Z6) SETTLES USD 3.55 HIGHER AT USD 116.72/BBL30 min ago
- US President Trump says he discussed the North Sea with the UK PM. Conversation also include Iran and Ukraine.4 hours ago
- US President Trump is set to speak with UK PM Burnham this afternoon on the Russia-Ukraine situation, BBG reports4 hours ago
- Week in Focus 26-30th October 2026: FOMC, BoC, RBNZ, ECB, BoJ Policy Decisions, US PCE4 hours ago
- Citi says it remains neutral on copper until more energy-market and tariff clarity emerges; views any associated risk-off episodes as good long-term buying opportunities50 min ago
- Oracle (ORCL) to invest USD 1bln in partner ecosystem over 4 years7 hours ago
- US Ambassador to Turkey Tom Barrack says US could strike Iran as soon as this weekend, AFP reports citing an interview on Israeli radio1 hour ago
- Foreign Ministers of Egypt, Saudi Arabia, Turkey and Pakistan say ‘Israeli occupation is the main source of instability in the region and beyond’, according to a statement25 min ago
- Russia's Kremlin says Russian and Ukrainian militaries are working to determine dates for ceasefire talks4 hours ago
- Senior Ukrainian Official says that a ceasefire in Russian-occupied Oleshky is to be established soon4 hours ago
- Japan is considering classifying energy and AI spending as defence expenditure amid pressure from the Trump administration to increase military budgets, according to Nikkei3 hours ago