International Business Machines Corporation (IBM) Earnings
International Business Machines Corporation is expected to report next earnings on July 22, 2026 (in NaN days), with a consensus EPS estimate of $3.01. IBM has beaten EPS estimates in 12 of its last 12 reported quarters (average surprise +6.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 22, 2026 | $1.81 | $1.91 | +5.5% | $15.9B | +1.8% |
| Jan 28, 2026 | $4.31 | $4.52 | +4.9% | $19.7B | +2.6% |
| Oct 22, 2025 | $2.45 | $2.65 | +8.2% | $16.3B | +1.5% |
| Jul 23, 2025 | $2.65 | $2.80 | +5.7% | $17.0B | +2.3% |
| Apr 23, 2025 | $1.42 | $1.60 | +12.7% | $14.5B | +1.0% |
| Jan 29, 2025 | $3.77 | $3.92 | +4.0% | $17.6B | -0.0% |
| Oct 23, 2024 | $2.22 | $2.30 | +3.6% | $15.0B | -0.7% |
| Jul 24, 2024 | $2.20 | $2.43 | +10.5% | $15.8B | +0.9% |
| Apr 24, 2024 | $1.60 | $1.68 | +5.0% | $14.5B | -0.6% |
| Jan 24, 2024 | $3.78 | $3.87 | +2.4% | $17.4B | +0.5% |
| Oct 25, 2023 | $2.13 | $2.20 | +3.3% | $14.8B | +6.1% |
| Jul 19, 2023 | $2.01 | $2.18 | +8.5% | $15.5B | +4.6% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 22, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- IBM is off to a strong start in 2026 with 6% revenue growth and 13% free cash flow growth. - Macro environment: Middle East developments didn't impact first quarter, but uncertainties remain. Enterprises are investing in resiliency, productivity, growth, modernizing core systems, scaling AI. - AI: Enterprises are figuring out AI deployment, IBM is building platforms for enterprises to use AI on their terms. Red Hat provides open platform, automation portfolio manages sprawl, Concert handles security risks, data business benefits from AI tailwinds. - IBM Z delivers low unit cost architecture for AI inferencing, Spire accelerator helps embed AI in transaction flows. - Consulting: AI is growth driver and productivity engine, embedded in engagements with about 30% of backlog. - IBM Bob, Sovereign Core, strategic collaborations with NVIDIA and Arm announced. - Progress in quantum with plans to deliver fault-tolerant quantum computer by 2029.
Guidance
- Confident in sustaining constant currency revenue growth of 5% plus and growing free cash flow by about $1 billion in 2026. - Software expected to grow 10 plus percent. - Consulting revenue growth to low to mid single digits. - Infrastructure revenue expected to be down low single digits for the year. - Anticipated to absorb about $600 million of dilution from Confluent in 2026 but on track to expand operating pre-tax margins by about a point. - Second quarter constant currency revenue growth rate expected to be similar to full year, operating pre-tax margin expected to have about 50 basis points of expansion.
Segment performance
Software revenue grew 8%, with data and Red Hat growing double digits. Infrastructure grew 12% with IBM Z up 48%. Consulting grew 1%. Software ARR was $24.6 billion, up 10% since last year. Data revenue grew 16% fueled by Gen AI products and Confluent acquisition. Red Hat growth accelerated to 10%. Automation grew 7%. Hybrid infrastructure up 25%, infrastructure support down 6%. IBM Z grew 48%. Distributed infrastructure grew double digits. Consulting signings returned to growth up 6% with strength in application and data transformation offerings.
Analyst Q&A
Q: Amit Daryanani asked about IBM's software mix between infrastructure vs applications, consumption vs subscription and where AI adds incremental value.
A: Arvind Krishna said most of IBM's software is enabling software, tied to consumption. AI increases demand for portfolio.
Q: Wamsi Mohan asked about software growth trajectory and M&A appetite.
A: Jim Cavanaugh said software portfolio is strong, data growing 16% with Confluent contribution, M&A appetite may increase in second half if values are right.
Q: Ben Reitzes asked about guidance and Europe.
A: Arvind Krishna said Middle East and Europe are strong, no slowdown in deals. Jim Cavanaugh said fundamentals are strong but prudent with guidance.
Q: Fatima Bulani asked about mainframe AI workload mix and transaction processing growth.
A: Arvind Krishna and Jim Cavanaugh discussed mainframe AI inferences and transaction processing growth.
Q: Brent Phil asked about software constant currency growth.
A: Jim Cavanaugh said mix of portfolio and seasonality impact growth but portfolio is strong.
Q: Eric Woodring asked about supply chain headwinds.
A: Jim Cavanaugh and Arvind Krishna said supply chain headwinds have de minimis impact and IBM mitigates through relationships.
Q: Jim Schneider asked about AI bookings and consulting growth.
A: Jim Cavanaugh said AI is embedded across portfolio, consulting signings returned to growth with strong backlog.
Q: Matt Swanson asked about IBM winning Gen AI regardless of application layer winner.
A: Arvind Krishna said IBM is neutral on frontier models, works with all, and helps clients deploy models to gain value.