IBM Z mainframe
IBM Z revenue fell 42% in Q2 2026; mainframe revenue is cyclical.
The numbers
What it is
IBM Z systems, including the z17 mainframe, run banking, payment and other high-volume transaction workloads. Revenue comes in multi-year upgrade waves, so reported quarters can swing sharply. The Infrastructure segment also includes Power and storage hardware.
Why it matters to the stock. Mainframe cycles drive most of the swings in Infrastructure, which accounts for about 23% of revenue and has the most volatile growth in the company.
News
IBM Q2 2026 confirms revenue of $17.2B and cuts 2026 growth outlook to 4% to 5%
IBM's full second-quarter 2026 report matched the July 14 preliminary figures: revenue of $17.2B, up 1%, with GAAP EPS of $2.27 and operating EPS of $2.93.
IBM declares $1.69 quarterly dividend, payable September 10, 2026
IBM's board approved a regular quarterly cash dividend of $1.69 per share, with a record date of August 10 and payment on September 10, 2026.
IBM warns Q2 results will miss, citing a weak mainframe cycle and delayed deals
IBM released preliminary second-quarter 2026 results showing revenue of $17.2B, up 1%, and non-GAAP EPS of $2.93, up 5%, both below analyst expectations.
IBM launches compact z17 and LinuxONE 5 systems for smaller data centers
IBM introduced single-frame and rack-mount versions of the z17 mainframe and a new LinuxONE Rockhopper 5 line, aimed at customers short on data-center space.
Anthropic says Claude Code can speed COBOL modernization; IBM shares fall about 13%
Anthropic published a post arguing that Claude Code can automate the costly analysis phase of COBOL modernization, such as mapping dependencies and documenting legacy workflows.