--- title: After shocking quarter, IBM insists that AI isn’t... description: IBM reported a dismal Q2 2026, with mainframe revenue down 42% — its biggest single-day stock drop ever at 25%. CEO Arvind Krishna attributed the decline to... canonical: https://daily.dev/posts/after-shocking-quarter-ibm-insists-that-ai-isn-t-killing-the-mainframe-8uubhnrrh twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: After shocking quarter, IBM insists that AI isn’t killing the mainframe | daily.dev og:description: IBM reported a dismal Q2 2026, with mainframe revenue down 42% — its biggest single-day stock drop ever at 25%. CEO Arvind Krishna attributed the decline to... og:url: https://daily.dev/posts/after-shocking-quarter-ibm-insists-that-ai-isn-t-killing-the-mainframe-8uubhnrrh og:image: https://api.daily.dev/og/posts/8uUBhnRrh.png og:image:alt: After shocking quarter, IBM insists that AI isn’t killing the mainframe og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # After shocking quarter, IBM insists that AI isn’t killing the mainframe **[TechCrunch](https://daily.dev/sources/tc)** · 3 min read · 0 upvotes · 0 comments ## Summary IBM reported a dismal Q2 2026, with mainframe revenue down 42% — its biggest single-day stock drop ever at 25%. CEO Arvind Krishna attributed the decline to enterprise customers diverting hardware budgets toward AI-driven data center gear and PCs, which saw 15–30% price increases due to component cost inflation from the AI boom. IBM's CFO noted the cascading effect: every $1 of mainframe hardware sold generates $3 in software revenue. Despite the miss, IBM leadership insists the mainframe isn't dying — some delayed customers have already placed orders this quarter — and lowered full-year growth forecasts while framing the shortfall as temporary. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: --- Tags: [#ai](https://daily.dev/tags/ai), [#infrastructure](https://daily.dev/tags/infrastructure), [#ibm](https://daily.dev/tags/ibm) [View this post on daily.dev](https://daily.dev/posts/after-shocking-quarter-ibm-insists-that-ai-isn-t-killing-the-mainframe-8uubhnrrh) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"After shocking quarter, IBM insists that AI isn’t killing the mainframe","url":"https://daily.dev/posts/after-shocking-quarter-ibm-insists-that-ai-isn-t-killing-the-mainframe-8uubhnrrh","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/after-shocking-quarter-ibm-insists-that-ai-isn-t-killing-the-mainframe-8uubhnrrh"},"datePublished":"2026-07-22T23:49:02.867Z","dateModified":"2026-07-22T23:50:04.831Z","description":"IBM reported a dismal Q2 2026, with mainframe revenue down 42% — its biggest single-day stock drop ever at 25%. 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