IBM is warning that its quarterly results could come in weaker than expected, after a handful of large deals failed to close on schedule and supply chain disruptions created additional drag on the business.
IBM had just posted a strong first quarter, with revenue of $15.9B and year-over-year growth of 9%. Now, heading into its Q2 2026 earnings call on July 22, the company is signaling that the momentum may have hit a speed bump.
What actually happened here
IBM’s warning points to two compounding problems. First, large deals did not cross the finish line in time to be counted for Q2. Second, supply chain delays added another wrinkle, suggesting the issue is not purely a sales execution story.
IBM had set a high bar coming into the year. The company’s full-year 2026 revenue guidance called for growth of over 5% at constant currency, alongside roughly $1B in year-over-year free cash flow improvement. Missing even one quarter makes that full-year target harder to hit without acceleration elsewhere.
