IBM (technology company)IBMIBMfirst quarter (Q1)yī jìdù一季度revenue / salesyíngshōu营收to exceed / to surpasschāochū超出expectations / forecastyùqī预期，AI (artificial intelligence)AIAIbusiness / operationsyèwù业务to becomechéngwéi成为key / criticalguānjiàn关键growthzēngzhǎng增长engine / driveryǐnqíng引擎。
April 26, 2026 at 11:00 AM
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BusinessIBM First-Quarter Revenue Beats Estimates as AI and Software Drive Growth
IBM reported first-quarter 2026 earnings with revenue of $15.9 billion, up 9% year-over-year, beating analyst estimates as AI platform watsonx and Z-series mainframes drove strong demand.
IBM announced Q1 2026 financial results on April 22, with overall performance exceeding market expectations.
This quarter's revenue grew 9 percent year-over-year, reaching $15.9 billion, with software division revenue growing 11 percent.
The watsonx AI platform's annualized revenue has exceeded $1.5 billion, with year-over-year growth surpassing 40 percent.
The infrastructure division showed impressive performance, with Z-series mainframe revenue surging 48 percent year-over-year, reflecting robust demand from enterprises for AI inference workloads.
Generative AI projects in the consulting business now account for approximately 30 percent of the consulting backlog.
Although results exceeded expectations, IBM's stock price fell about 6 percent in after-hours trading because the company maintained unchanged full-year guidance.
IBM reiterated full-year revenue growth at fixed exchange rates will exceed 5 percent, and it expects free cash flow to increase by approximately $1 billion year-over-year.
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