The 2026 Q2 earnings season is in full swing now, with many notable companies on the reporting docket in the coming days and weeks. So far, several companies, including Micron MU and Citigroup C, have been standouts, whereas preliminary results from IBM IBM have been disappointing.
IBM Preliminary Results Disappoint
IBM, or International Business Machines, shares recently fell on the back of preliminary Q2 results, largely missing the mark on expectations due to weak software results. The company stated that companies swiftly adjusted their CapEx budgets toward servers, storage, and memory infrastructure ahead of expected price increases, with software becoming much less of a priority.
The budget shift caught the company off guard, preventing it from closing large deals within the previously expected timeline. It explains the weaker-than-expected preliminary results and the resulting share plunge.
Shares went from roughly a flat YTD performance to down more than 25%, reflecting just how eager the market has become to punish tech companies that fall short.
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Citigroup Posts Broad-Based Strength
In contrast, Citigroup actually came out with solid quarterly results yet again, beating the Zacks Consensus EPS estimate by more than 15% while also delivering a solid 4.5% sales surprise. While shares didn’t pop higher, that’s largely a reflection of management staying somewhat conservative in their view, with Citigroup shares already up 13% YTD and outperforming the S&P 500.
The bank posted rock-solid growth, with revenue of $24.8 billion reflecting 14% YoY growth alongside a 45% YoY improvement in earnings. It saw broad-based strength from a segment standpoint, with four out of five seeing double-digit percentage revenue growth. It also raised its quarterly dividend payout by 12% and launched its $30 billion buyback program, further reflecting just how successful the quarter was.
The EPS outlook for the financial titan remains bullish, with EPS expectations increasing across the board.
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Micron Crushes Again
We’ve all become accustomed to Micron’s legendary performance, with demand for memory solutions amid the AI frenzy driving unprecedented growth and demand for the company for some time now. Micron again crushed it in its latest release, which we count as part of the Q2 cycle, beating our consensus EPS estimate by 17% and delivering a 13% sales surprise.
Sales of $41.5 billion were up by a triple-digit 350% YoY, and earnings grew by an even more impressive, quad-digit 1340%. The company is actually a major contributor to Tech’s outsized growth expectations for the Q2 cycle, with EPS revisions remaining highly bullish across the board.
The stock remains a Zacks Rank #1 (Strong Buy).
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Bottom Line
The 2026 Q2 earnings season is in full swing, with several notable companies already delivering results. So far, Micron MU and Citigroup C have been big-time standouts, whereas preliminary results from IBM IBM have been a big disappointment.
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This article originally published on Zacks Investment Research (zacks.com).