# IBM Insists Mainframes Aren't Dead After Poor Quarter IBM claims AI hasn't killed the mainframe. - **Source:** [TechCrunch](https://techcrunch.com) - **Published:** 2026-07-22 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/bc8004b2-ffb6-4fd2-befe-e11610d04533 ## IBM's Quarterly Results IBM underperformed expectations in the 2023 quarter. The company reported $17.2 billion in revenue and $2.2 billion in net profit but fell short of Wall Street's forecasts. ## Decline in Mainframe Revenue IBM's mainframe business saw a 42% decline. This drop negatively impacted software revenues, which are closely tied to mainframe sales. ## Shift in Customer Preferences Customers planning to buy mainframes opted for other hardware due to rising costs. This shift significantly affected IBM's revenue. ## AI's Impact The AI boom both lifted and sank IBM. Customers redirected their budgets toward AI hardware, delaying mainframe purchases. ## Future Predictions IBM CEO Arvind Krishna predicts customers will return to mainframes and renew software contracts. Some customers have already taken this step this quarter. ## The Future of Mainframes The tech industry has predicted the death of mainframes for decades. However, IBM insists that even AI won't kill the mainframe. ## Sources covering this story - https://techcrunch.com/2026/07/22/after-shocking-quarter-ibm-insists-that-ai-isnt-killing-the-mainframe/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._