IBM played down market concerns that generative AI will threaten its software business, saying only about 2 percent of its software could be replaced by AI and most products support customers’ AI use. CEO Arvind Krishna said IBM’s software enables real-time data use and lowers data-management costs. IBM shares are down about 30 percent this year. The company cited a mainframe slowdown and lowered its software growth outlook to 6 to 8 percent.

IBM cut its 2026 full-year revenue growth outlook. CNBC reported IBM forecast 4 to 5 percent revenue growth this year on a constant-currency basis, retreating from its April target of more than 5 percent. The move follows last week’s unusual preliminary release and warning, when CEO Arvind Krishna cited weak Z mainframe and transaction-processing software sales. Second-quarter profit slipped and infrastructure revenue fell, while software growth supported results. IBM reaffirmed its free cash flow outlook.