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.↗ source
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.