IBM reported weaker-than-expected second-quarter earnings and lowered its 2026 growth forecast, citing slower sales in some key businesses.

The company posted $17.16 billion in revenue, slightly below analyst expectations, while net income fell to $2.17 billion from a year earlier.

IBM now expects 4% to 5% revenue growth in 2026, down from its previous forecast of more than 5%.

Software revenue increased, but infrastructure sales declined sharply, including a 42% drop in Z mainframe revenue, CNBC has reported.

The company said it is focusing on improving productivity through artificial intelligence, including new AI tools and investments in quantum computing.