Distributed infrastructure (Power and storage)
Distributed Infrastructure revenue rose 37% in Q2 2026, the strongest KPI in the release.
The numbers
What it is
Power Systems servers and IBM storage products sold for AI and enterprise workloads. This line is much smaller than IBM Z and is reported as its own KPI in the quarterly release.
Why it matters to the stock. Strong distributed growth alongside a falling mainframe cycle shows whether AI-related hardware demand can offset IBM Z.
News
IBM Q2 2026 confirms revenue of $17.2B and cuts 2026 growth outlook to 4% to 5%
IBM's full second-quarter 2026 report matched the July 14 preliminary figures: revenue of $17.2B, up 1%, with GAAP EPS of $2.27 and operating EPS of $2.93.
IBM raises quarterly dividend to $1.69, its 31st consecutive annual increase
IBM's board raised the quarterly dividend to $1.69 per share from $1.68, marking the 31st consecutive annual increase.
IBM and NVIDIA expand collaboration on GPU analytics, storage and cloud GPUs
At GTC 2026 IBM and NVIDIA expanded their work on enterprise AI.