# IBM beats earnings but struggles with mainframe slump

> IBM's stock rose 4% after beating earnings forecasts but remains down 13% from pre-Q2 crash.
- Title: IBM beats earnings but struggles with mainframe slump
- Summary: IBM's stock rose 4% after beating earnings forecasts but remains down 13% from pre-Q2 crash. IBM reported $2.95 per share earnings and $17.1 billion revenue…
- Keywords: ibm, mainframe, revenue, earnings, stock, quantum computing, z17, technology, enterprise, beats, struggles, slump
- Source: SiliconANGLE — https://siliconangle.com/2026/10/21/ibm-beats-expectations-as-it-struggles-to-bounce-back-from-q2-mainframe-slump
- Author: Mike Wheatley
- Published: 2026-10-22T00:20:24+00:00
- Read time: 1 min
- Topics: ibm, q2, mainframe, revenue, earnings, stock, ai, quantum computing, z17, technology, enterprise
## IBM beats earnings
IBM reported adjusted earnings of $2.95 per share, beating Wall Street’s forecast of $2.86 per share.
## Revenue growth
Revenue rose 5% to $17.1 billion, just ahead of the Street’s target of $16.82 billion.
## Q2 mainframe slump
IBM’s stock plummeted more than 25% after Q2 mainframe sales fell short of expectations.
## AI consulting growth
AI now accounts for 30% of consulting revenue and 35% of order backlog.
## Quantum computing progress
IBM won U.S. government confidence in quantum benchmarking initiative for 2033 target.
## Quantum Starling system
Quantum Starling will perform 20,000 times more calculations than current quantum computers.
## Stock recovery
IBM’s stock remains down 13% from July 13 close despite Q3 improvements.
## Key takeaway

IBM reported $2.95 per share earnings and $17.1 billion revenue, but its stock is still down 13% from July due to Q2 mainframe sales slump.