NewsMV
IBM (IBM) is reframing its investor narrative around reliable recurring software revenue, a strategic shift from the cumulative generative AI metrics that dominated previous earnings calls.
During the fiscal Q2 2026 call on July 22, 2026, executives highlighted that approximately 80% of the company's annual software revenue is recurring, a division that accounts for nearly 45% of total revenue.
This change in emphasis marks a departure from the fiscal Q2 2025 call, where leadership anchored its pitch to a generative AI book of business that had grown to over $7.5 billion since inception.
The software unit remains the company's largest source of revenue, generating $30.0 billion in fiscal 2025, or 44% of total revenue.
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