CNBC4/22/2026Business
IBM shares slip 6% despite Q1 beat, maintained full-year guidance
Software revenue up 11%, infrastructure up 15% with 51% jump in Z mainframe hardware
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- IBM reported stronger-than-expected Q1 2026 results with EPS of $1.91 adjusted vs $1.81 expected and revenue of $15.92 billion vs $15.62 billion expected, but shares slipped 6% in extended trading as the company maintained its full-year guidance.
- Software revenue grew 11% to $7.05 billion, consulting rose 4% to $5.27 billion, and infrastructure jumped 15% to $3.33 billion, driven by a 51% surge in Z mainframe hardware revenue.
- IBM completed the $11 billion Confluent acquisition in mid-March and now sees operating pre-tax margin expanding by about 1%.
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IBM reported stronger-than-expected Q1 2026 results with EPS of $1.91 adjusted vs $1.81 expected and revenue of $15.92 billion vs $15.62 billion expected, but shares slipped 6% in extended trading as the company maintained its full-year guidance. Software revenue grew 11% to $7.05 billion, consulting rose 4% to $5.27 billion, and infrastructure jumped 15% to $3.33 billion, driven by a 51% surge in Z mainframe hardware revenue. IBM completed the $11 billion Confluent acquisition in mid-March and now sees operating pre-tax margin expanding by about 1%.
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This article was originally published by CNBC.
