Story perspectives

IBM Q1 Beats Estimates, Software Up 11%, Confluent Deal Completed

4/23/2026

Summary

IBM Beats

IBM posted Q1 revenue of $15.92 billion and earnings of $1.91 per share, beating the $1.81 consensus.
Software revenue rose 11% to $7.05 billion.
Infrastructure sales grew 15% to $3.33 billion, aided by a 51% jump in Z mainframe hardware.
IBM kept its outlook, forecasting over $1 billion free cash flow and >5% constant-currency revenue growth.
IBM declared a $1.69 per-share dividend payable June 10 and completed its $11 billion Confluent acquisition in mid-March.

Summary

IBM Shares Drop

IBM shares fell 6% in extended trading on April 22, 2026 after the company posted Q1 results that beat forecasts but left guidance unchanged.
The stock is down about 15% year-to-date, lagging the S&P 500’s 4% gain.
Investor anxiety rose over AI disruption to IBM’s mainframe after a 13% February drop when AI-modernization claims emerged.
Senior vice president of software Rob Thomas said AI strengthens the mainframe case, not weakens it, to calm markets.

Summary

IBM Highlights Growth

IBM CEO Arvind Krishna attended a Diwali celebration in White House Oval Office Oct. 21, 2025 and said IBM posted its strongest Middle East revenue growth during first quarter, and Iran-U.S. war that began Feb. 28 did not affect results.
Finance chief Jim Kavanaugh warned that a hardware supply chain and signings slowed Red Hat Enterprise Linux revenue while consulting revenue was $5.27 billion, 4% year over year, below $5.28 billion StreetAccount estimate.

1 of 3

IBM Beats

IBM posted Q1 revenue of $15.92 billion and earnings of $1.91 per share, beating the $1.81 consensus.
Software revenue rose 11% to $7.05 billion.
Infrastructure sales grew 15% to $3.33 billion, aided by a 51% jump in Z mainframe hardware.
IBM kept its outlook, forecasting over $1 billion free cash flow and >5% constant-currency revenue growth.
IBM declared a $1.69 per-share dividend payable June 10 and completed its $11 billion Confluent acquisition in mid-March.

1 / 3