IBM reported first-quarter 2026 revenue of $15.9 billion. This figure represents a 9% year-over-year increase and exceeded analyst expectations. Adjusted quarterly profit reached $1.91 per share, surpassing market estimates.
The software segment grew by 11% during the quarter. Infrastructure revenue rose 15%, fueled by a mainframe upgrade cycle.
IBM shares fell sharply in after-hours trading despite the earnings beat. Investors reacted to a slowing pace of revenue growth compared to the previous quarter. Deceleration in the high-margin software business raised concerns about the speed of AI monetization. Fears regarding competition from rival AI tools also pressured the stock price.