INTERNATIONAL BUSINESS MACHINES CORP (IBM) Earnings History

INTERNATIONAL BUSINESS MACHINES CORP - Q1 2026 EarningsBeat

Filed at: Apr 22, 2026, 4:10 PM EDT|Read from source

EXECUTIVE SUMMARY

IBM reported a strong start to 2026 with broad-based revenue growth across its segments, driven by double-digit increases in Software and Infrastructure. The company demonstrated robust margin expansion and significant growth in profit and free cash flow, reflecting effective portfolio management and disciplined execution.

POSITIVE HIGHLIGHTS

  • •

    Revenue increased 9% year-over-year (6% at constant currency) to $15.9 billion.

    positive
  • •

    Software revenue grew 11% (8% at constant currency) to $7.1 billion, with strong contributions from Hybrid Cloud, Automation, and Data.

    positive
  • •

    Infrastructure revenue surged 15% (12% at constant currency) to $3.3 billion, led by Hybrid Infrastructure and IBM Z.

    positive
  • •

    Operating (Non-GAAP) Gross Profit Margin expanded 110 basis points to 57.7%.

    positive
  • •

    Operating (Non-GAAP) Pre-Tax Income Margin expanded 140 basis points to 13.4%.

    positive
  • •

    Free cash flow increased by $0.3 billion year-over-year to $2.2 billion.

    positive
  • •

    The company declared an increased quarterly cash dividend to $1.69 per share, marking the 31st consecutive year of dividend increases.

    positive

CONCERNS & RISKS

  • •

    Consulting revenue grew only 4% (1% at constant currency), indicating slower growth in this segment compared to Software and Infrastructure.

    attention
  • •

    Infrastructure Support revenue declined 2% (6% at constant currency).

    attention
  • •

    IBM Financing revenue grew 15% (10% at constant currency) but represents a small portion of total revenue ($0.2 billion).

    attention
  • •

    Total current liabilities increased to $40.1 billion from $38.7 billion at year-end 2025.

    attention
  • •

    Total debt increased by $5.1 billion year-to-date to $66.4 billion.

    attention
  • •

    Cash, cash equivalents, and marketable securities decreased by $2.6 billion from year-end 2025 to $11.8 billion.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$15.92B
+9.5%
Prior year: $14.54B
Net Income
Quarterly
$1.22B
+15.3%
Prior year: $1.05B
EPS (Diluted)
Quarterly
$1.28
+14.3%
Prior year: $1.12
Operating Income
Quarterly
$2.13B
+22.5%
Prior year: $1.74B
EPS (Basic)
Quarterly
$1.30
+14.0%
Prior year: $1.14

MARGIN ANALYSIS

Gross Margin
Current Quarter
56.2%
Prior Year
55.2%
YoY Change
+100 bps
Operating Margin
Current Quarter
13.4%
Prior Year
12.0%
YoY Change
+140 bps
Net Margin
Current Quarter
7.6%
Prior Year
7.3%
YoY Change
+30 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q1 2026 2026

VISUAL OVERVIEW

|
Software
0.0%
N/A
CC: +7.9%
Consulting
0.0%
N/A
CC: +0.9%
Infrastructure
0.0%
N/A
CC: +11.7%
Financing
0.0%
N/A
CC: +10.2%

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% TotalCC
Software
N/A———+7.9%
Consulting
N/A———+0.9%
Infrastructure
N/A———+11.7%
Financing
N/A———+10.2%
Total Revenue$0.00M——100.0%—

Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.

MANAGEMENT GUIDANCE

FY2026

revenue
"more than 5 percent constant currency revenue growth"
free_cash_flow
"increase of about $1 billion year-over-year"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

EARNINGS CALL —

Call date
2026-04-22
Tone
cautious
Hedge density
N/A
Deflection rate
0.0%
View transcript Source Accession: 0000051143-26-000036

CALL GUIDANCE — Q1 2026 2026

MetricValuePeriodSpecificityvs Prior
revenue5% plusFY2026directionalNew
free_cash_flowabout $1 billionFY2026directionalNew
software_revenue10 plus%FY2026directionalNew
consulting_revenuelow to mid-single digitsFY2026wide_rangeNew
infrastructure_revenuedown low single digitsFY2026directionalNew
operating_pre_tax_marginabout a pointFY2026directionalNew
operating_tax_ratemid-teensFY2026tight_rangeNew
free_cash_flowabout $1 billionFY2026directionalNew
revenuesimilar to the full yearQ2 2026directionalNew
operating_pre_tax_marginabout 50 basis pointsQ2 2026directionalNew
operating_tax_ratemid-teensQ2 2026tight_rangeNew

MACRO STANCE — Q1 2026 2026

  • demand_environmentneutralnew
  • supply_chainheadwindnew
  • fxheadwindnew

Q&A SIGNALS — Q1 2026 2026

Hedge rate
N/A
Concerns retained
0
Forward commits
0

MANAGEMENT COMMENTARY

The first quarter was a strong start to the year with broad-based revenue growth across our segments.

— INTERNATIONAL BUSINESS MACHINES CORP, Q1 2026 2026 Earnings Call

These results reflect the integrated value of our portfolio and the trust clients put in us to improve their operations.

— INTERNATIONAL BUSINESS MACHINES CORP, Q1 2026 2026 Earnings Call

As clients scale use cases, AI continues to be a tailwind for our global business.

— INTERNATIONAL BUSINESS MACHINES CORP, Q1 2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

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