IBM cuts annual revenue growth forecast as customers prioritize AI infrastructure spending

IBM cut its 2026 revenue growth forecast to 4-5 percent, down from more than 5 percent earlier, after missing Q2 profit and revenue estimates. Q2 revenue rose 1 percent to $17.16 billion against a $17.58 billion estimate, with mainframe revenue plunging 42 percent. CEO Arvind Krishna said about one-third of deferred large capex deals have already closed in Q3, describing the demand as deferred rather than destroyed.