IBM's (IBM) free cash flow and revenue guidance for 2026 were both ahead of expectations after a weaker-than-expected Q2, RBC Capital Markets said in a note Wednesday.

Analysts said the primary question from investors is whether deals that slipped at the end of Q2 are expected to close in Q3 and the rest of the year. The company provided "very little additional color" to explain deals that slipped due to reprioritization of the capital expenditure budget, the investment firm said.

The unchanged free cash flow guidance and "roughly maintained" revenue guidance indicated management's confidence in H2 as 30% to 40% of the deals had been closed, analysts said.

The firm said there are customer concerns on pricing dynamics for memory and storage, which has helped IBM's power and storage business.

RBC maintained its outperform rating and $270 price target on the stock.

Shares of IBM were advancing 0.7% in Thursday trading.

Price: 207.19, Change: +1.42, Percent Change: +0.69