While other tech giants pour cash into some AI data centers, IBM keeps selling mainframes and channels profits into quantum computing. Its stock has stalled since July 14, when it pre‑announced차 disappointing earnings, but the current AI boom may only be a temporary disruption to its core business.

In an interview, Chief Executive Arvind Krishna said the 115‑year lng company’s core business remains robust. Nearly every credit‑card authorization passes through an IBM system, and 70% of all transaction value flows through its mainframes daily, powering banks, insurers, airlines and Fortune 500 firms nens.

If IBM’s hardware and software disappeared, the economy would grind to a halt, he added. Infrastructure may be less glamorous than generative‑AI models, but it is safe and profitable. The company reported $4.8 billion in free cash flow in the first half of 2026.

Alphabet, by contrast, just announced cash‑flow negative for the first time since its debut, underscoring IBM’s resilience. The CEO remains unfazed, viewing AI as an opportunity rather than a threat to its enduring legacy.