IBM (IBM) Q1 Earnings Beat Expectations Despite 6% Share Drop

AI Summary

IBM (IBM) reported a Q1 earnings per share of $1.91, exceeding the $1.81 consensus, with revenue of $15.92 billion surpassing the expected $15.62 billion. Despite these stronger-than-expected results, shares fell 6% in extended trading as the company maintained its guidance for 2026, forecasting over 5% revenue growth. Net income rose to $1.22 billion, up from $1.06 billion the previous quarter, aided by a 9% year-over-year revenue growth. Software revenue increased 11% to $7.05 billion, while consulting revenue grew 4% to $5.27 billion, slightly missing analyst expectations.