International Business Machines Corporation Q1 2026 Earnings Recap

IBM Q1 2026 April 23, 2026

Get alerts when IBM reports next quarter

IBM delivered a strong start to 2026, with 6% revenue growth driven by robust performance in hybrid cloud and AI platforms, alongside solid margin expansion and free cash flow increase.

Earnings Per Share Beat

$1.91 vs $1.81 est.

+5.5% surprise

Revenue Beat

15917000000 vs 15630810000 est.

+1.8% surprise

Market Reaction

1-Day -7.89%

5-Day -7.47%

30-Day -12.93%

See IBM alongside your other holdings

Add to your portfolio — free

Key Takeaways

Revenue increased 6% in Q1, with software up 8% and Data + Red Hat double digits, supported by a record quarter for Z and a 48% growth in infrastructure.
AI and automation are core growth drivers, with IBM’s platform enabling enterprises to orchestrate, govern, and secure AI workloads across hybrid environments.
Strategic focus on enterprise data, security, and open infrastructure bolsters demand for Confluent, watsonx, and IBM Z solutions.
AI-driven enhancements in infrastructure and software, including AI-embedded products and transaction-focused innovations, continue strengthening client value and platform resilience.
Consulting growth remains steady, centered on AI modernization and operational efficiency, reinforcing IBM’s integrated software consulting model.

This summary was generated by AI from the official earnings call transcript and is provided for informational purposes only. It does not constitute financial advice. For the complete transcript and financial data, visit IBM on AllInvestView.

Previous Q3 2025