Ibm's Software Miss Tied to Deal Slippage and Mainframe Stack

Dow Jones07-14 19:24

IBM's software shortfall in the second quarter stemmed from weakness in its mainframe-related software, particularly Transaction Processing, the company said. Large deals failed to close on expected timelines, and the company acknowledged it didn't adapt quickly enough to shifting client priorities. Clients were securing supply-constrained infrastructure and dealing with cybersecurity concerns, which distracted from software purchasing decisions, according to the company. The execution miss contrasts with strength elsewhere in software: Red Hat revenue accelerated to 11% growth, and recent acquisitions HashiCorp and Confluent delivered strong performance

This article was automatically created using artificial-intelligence technology and reviewed by Dow Jones Newswires editors.

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July 14, 2026 07:24 ET (11:24 GMT)

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