July 24 – IBM 
IBM shares slipped more than 5% in early trading Thursday, as investors reacted to soft software sales, even as the tech giant beat expectations on profit and revenue thanks to strong demand for AI and mainframes.
The company posted adjusted earnings of $2.80 per share for Q2, ahead of the $2.65 consensus. Revenue reached $17 billion, topping forecasts of $16.59 billion. Operating margin rose by 320 basis points from a year ago.
CEO Arvind Krishna said the results reflected strong execution and growing momentum in generative AI, which has now crossed a $7.5 billion annual run rate.
IBM also raised its full-year free cash flow outlook to above $13.5 billion, pointing to a solid first half and improved margin trends.
Still, not all parts of the business outperformed. Software revenue came in at $7.39 billion, slightly under estimates. By contrast, the infrastructure segment, which includes IBM’s AI-optimized mainframes, delivered $4.14 billion in revenue, beating expectations.
Consulting revenue was up 3%, but executives struck a cautious tone, citing a mixed demand environment and concerns over macro pressures like tariffs.
Analysts at Morgan Stanley said the standout was mainframe performance, which, along with better margins, helped fuel the quarter’s upside surprise.