Quarterly guidance

Quarterly guidance
No specific formal quantitative next-quarter guidance figures were provided beyond full-year updates.

Annual guidance

Revenue growth
Expected in a range of 4% to 5% for the full year.
Software growth
Expected to be approximately 7% to 8%, with about 7% as the revised base case.
Free cash flow growth
Expected to increase by more than $1 billion.

Outlook

Software demand
Expects strong multi-year tailwinds from application modernization, Red Hat OpenShift, and data integration platforms as enterprises scale AI.
Mainframe monetization
High installed MIPS capacity and Z17 adoption provide a strong foundation for future transaction processing monetization.
Consulting and AI
Generative AI represents about 30% of consulting revenue and 35% of backlog, supporting a modest acceleration to low to mid-single-digit growth.
Productivity and margins
Ongoing productivity actions and AI-driven efficiencies across G&A and sales provide continued margin expansion and investment flexibility.