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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.
Software had been the bright spot, growing 11% year-over-year in Q1 2026.
IBM’s bigger picture and the digital asset angle
CEO Arvind Krishna has spent years repositioning the business around hybrid cloud and artificial intelligence, shedding legacy hardware divisions and doubling down on enterprise software and services.
Part of that repositioning includes a growing push into blockchain and digital assets. IBM launched its Digital Asset Haven platform in October 2025, a product designed to help enterprises manage digital assets across more than 40 blockchains. The company is working with partners like Dfns on digital asset management infrastructure, and it maintains its long-running involvement with Hyperledger Fabric and the IBM Blockchain Platform, which already powers supply chain consortia for companies like Walmart and Nestlé.
What this means for investors watching the July 22 call
IBM came into 2026 with a $15.9B Q1 revenue print, a credible full-year growth target, and an expanding software portfolio. The key question on the earnings call will be whether the missed deals represent a timing issue or a more structural slowdown.
Analysts watching the stock will be paying close attention to how Krishna and the leadership team frame the guidance for the back half of the year. Maintaining the full-year targets while acknowledging a Q2 miss would signal confidence. Trimming guidance would almost certainly trigger a sharper market reaction.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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