# IBM Lowers Full-Year Forecast The company revised its 2026 projections following a profit warning. - **Source:** [US Top News and Analysis](https://brifing.si/source/635540e9-943e-450d-ae52-ae0bfe3b67eb) - **Published:** 2026-07-22 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/e08d9fe7-6538-490e-a5aa-58a84c399bca ## IBM's Financial Revision IBM lowered its full-year forecast for 2026 and reported lower-than-expected profits. The company's shares rose 4% in extended trading, reflecting the impact of last week's profit warning. ## Revenue and Profit Performance IBM's second-quarter revenue increased by 1% to $17.16 billion. However, net profit declined to $2.17 billion compared to the previous year. The company expects 4-5% revenue growth at constant currency. ## Z Mainframe Sales IBM CEO Arvind Krishna noted worse-than-expected performance in Z mainframe sales. This led to a 25% drop in the company's stock, marking IBM's sharpest single-day decline on record. ## Software and Consulting Revenues IBM's high-margin software segment generated $7.76 billion in revenue, a 5% increase. Consulting revenue remained flat at $5.33 billion. Infrastructure revenue declined by 7% to $3.84 billion. ## AI and Quantum Chips IBM announced its intent to build a quantum chip foundry in the U.S. during the second quarter. The company also introduced the Bob AI coding tool, adopted by over 80,000 employees, showcasing its efforts in AI. ## Future Expectations IBM aims to boost productivity through software development and AI usage. The company believes these efforts will enhance margins and free cash flow, enabling it to capture significant growth opportunities. ## Sources covering this story - https://www.cnbc.com/2026/07/22/ibm-q2-earnings-report-2026.html — --- _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._