Q1 26 EPS
$1.91
Q1 26 Revenue
$15.92B
BEAT +1.70%
Est. $15.65B
vs S&P Since Q1 26
-11.7%
TRAILING MARKET
IBM -9.9% vs S&P +1.7%
Market Reaction
Did IBM Beat Earnings? Q1 2026 Results
International Business Machines delivered a convincing first-quarter 2026 earnings beat, posting non-GAAP diluted EPS of $1.91 against a consensus estimate of $1.81, a 5.45% beat that extended the company's streak of topping analyst EPS forecasts to … Read more International Business Machines delivered a convincing first-quarter 2026 earnings beat, posting non-GAAP diluted EPS of $1.91 against a consensus estimate of $1.81, a 5.45% beat that extended the company's streak of topping analyst EPS forecasts to four consecutive quarters. Revenue reached $15.92 billion, up 9.5% year over year and ahead of the $15.65 billion consensus by 1.70%, propelled by exceptional strength in Software and Infrastructure. Software climbed 11% to $7.05 billion, with Red Hat up 13% and Data up 19%, while Infrastructure surged 15% to $3.33 billion on a remarkable 51% jump in IBM Z mainframe revenue, expanding Infrastructure's segment profit margin to 15.8% from 8.6% a year ago. Investors had been closely watching whether IBM's software business could maintain momentum amid AI-driven industry shifts, and the quarter provided a clear affirmative answer. Adjusted EBITDA grew to $4.00 billion, with margin expanding to 25.0%, and free cash flow rose to $2.22 billion. IBM maintained its full-year 2026 outlook for more than 5% constant currency revenue growth and approximately $1.00 billion in year-over-year free cash flow improvement.
Key Takeaways
- • AI continues to be a tailwind for global business as clients scale use cases
- • Double-digit Software revenue growth driven by Data (up 19%), Red Hat (up 13%), and Automation (up 10%)
- • IBM Z mainframe revenue surged 51% year over year
- • Portfolio mix shift toward higher-margin Software and Infrastructure
- • Productivity initiatives drove double-digit profit and free cash flow growth
- • Strong margin expansion: operating gross profit margin up 110 basis points, operating pre-tax margin up 140 basis points
IBM Forward Guidance & Outlook
IBM continues to expect full-year 2026 constant currency revenue growth of more than 5 percent. At current foreign exchange rates, currency is expected to be about a half-point to one-point tailwind to growth for the year. The company continues to expect full-year free cash flow to increase by about $1 billion year-over-year.
IBM YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
IBM Revenue by Segment
With YoY comparisons, source: SEC Filings
“The first quarter was a strong start to the year with broad-based revenue growth across our segments. These results reflect the integrated value of our portfolio and the trust clients put in us to improve their operations. As clients scale use cases, AI continues to be a tailwind for our global business. IBM products and services are helping clients orchestrate, deploy and govern AI across hybrid environments.”
— Arvind Krishna, Q1 2026 Earnings Press Release
IBM Earnings Trends
IBM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
IBM EPS Trend
Earnings per share: estimate vs actual
IBM Revenue Trend
Quarterly revenue: estimate vs actual
IBM Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $1.91 | — | $15.92B | +1.70% |
| Q4 25 BEAT FY | $4.29 | $4.52 | +5.36% | $19.69B | +2.57% |
| FY Full Year | $11.35 | $11.59 | +2.11% | $67.54B | +0.74% |
| Q3 25 BEAT | $2.45 | $2.65 | +8.31% | $16.33B | +1.45% |
| Q2 25 BEAT | $2.65 | $2.80 | +5.47% | $16.98B | +2.32% |
| Q1 25 BEAT | $1.43 | $1.60 | +12.04% | $14.54B | +1.05% |