By Khac Phu Nguyen
Publication Date: 2026-10-20 16:15:00
IBM, the enterprise software and consulting group IBM, heads toward Wednesday’s earnings with shares at $236.46, up 1.86% at 12:35 p.m. ET on October 19. The question is simple: can software growth pull the rest of the business forward? Zacks’ October 16 preview points to stronger software demand, while IBM has scheduled its results discussion for October 21 at 5 p.m. ET. Investors need evidence that product momentum is reaching the consolidated numbers.
The company’s second-quarter results reveal the challenge. Software revenue climbed 5% to $7.8 billion, but total revenue rose just 1% to $17.2 billion. Consulting delivered $5.3 billion with no reported growth, while infrastructure revenue fell 7% to $3.8 billion. Even software had two speeds: Red Hat grew 11% and Data jumped 19%, while Transaction Processing shrank 8%. The strongest businesses are gaining ground. The weaker ones still carry enough weight to slow the group.
Software accounted for roughly 45% of quarterly revenue,…
