IBM revenue decline and quantum push

In late July 2026 IBM reported a sharp fall in its mainframe hardware sales—down 42 %—which dragged down software revenue tied to those units. The weak quarterly results, with revenue of $17.2 billion and net profit of $2.2 billion, fell short of expectations and prompted the company to cut its full‑year growth outlook. Shares tumbled about 25 %, marking the steepest single‑day drop in the firm’s history.

A week later, IBM announced a breakthrough in quantum‑computer result verification, positioning the development as a step toward practical quantum use. Despite the technical milestone, the stock remained depressed, having lost more than 22 % over the preceding 30 days and staying down roughly 25 % year‑to‑date. The company noted growth in its software segment but continued contraction in its infrastructure and Z‑Mainframe businesses, underscoring that the quantum advance had not yet translated into improved financial performance.