New Delhi, July 23 -- ARMONK - IBM's mainframe hardware revenue fell 42% in the second quarter, the company confirmed Wednesday, and the companies that depend on IBM's infrastructure for clearing payments, booking flights, and processing financial transactions spent the quarter wondering when they would hear different news.

IBM reported $17.2 billion in quarterly revenue for Q2 2026, with $9.9 billion in gross profit and $2.2 billion in net income. The margin figure, approximately 58%, is healthy. None of the numbers met Wall Street estimates. The reason was IBM's infrastructure segment, which the company itself described as posting "abysmal" revenue, driven by the worst mainframe hardware quarter in recent years.

Chief executive Arvind...