IBM Earnings Predictions — 2026-07-22

Ticker Report or Guide KPI Prediction Answer Confidence
IBM Report Q2 Revenue MISS pred ~$17.2B vs. cons ~$17.86B HIGH
IBM Report Q2 Operating (non-GAAP) EPS MISS pred ~$2.93 vs. cons ~$3.01 HIGH
IBM Report Software revenue growth (y/y) MISS pred ~+5% vs. cons ~+10% HIGH
IBM Guide FY26 constant-currency revenue growth LOWER guide ~2-3% vs. cons ~5%+ (FY2026) MEDIUM
IBM Guide FY26 Free cash flow UNCHANGED guide ~$13.5B vs. cons ~$13.0B (FY2026) MEDIUM
IBM Guide FY26 Software revenue growth LOWER guide ~7-8% vs. cons ~10%+ (FY2026) MEDIUM
IBM Guide FY26 Operating pre-tax margin expansion LOWER guide ~+50bps vs. cons ~+100bps (FY2026) LOW
IBM Return Day-1 residual (stock − beta × S&P 500) +4.0% MEDIUM
IBM Return 5-day cumulative residual +2.0% (STABILIZE) The Q2 miss is already pre-announced and the stock is down ~31% from its July 7 peak, so downside is largely discounted. A credible call that reaffirms ~$13.5B FCF (dividend/valuation floor intact) and frames the shortfall as fixable deal-slippage/z17 timing should trigger an oversold relief bounce on day 1. But out-period math is negative: FY revenue (~2-3% cc vs 5%+) and software (~7-8% vs 10%+) guides get cut, pulling estimates down even off the low base, and structural AI-capex-crowding plus activist/break-up overhang cap follow-through. Net: initial bounce holds but does not extend — stabilize. LOW