IBM's first quarter 2026 revenue of $15.9 billion beat estimates, driven by strong software and infrastructure growth.

IBM reported first quarter revenue of $15.9 billion, a 9% year-over-year increase, with operating (non-GAAP) EPS of $1.91, up 19% from the prior year. The company reaffirmed its full-year guidance for constant currency revenue growth of more than 5% and a free cash flow increase of about $1 billion.

Key Highlights

• Software and Infrastructure segments delivered double-digit growth, with revenue up 11% and 15% respectively, offsetting more modest 4% growth in the Consulting segment.
• Red Hat revenue growth met expectations, increasing 10% at constant currency, a key focus for investors looking for re-acceleration in the hybrid cloud business.
• Profitability improved, with the operating (non-GAAP) pre-tax income margin expanding by 140 basis points year-over-year to 13.4%.
• The company generated $2.2 billion in free cash flow for the quarter, an increase of $0.3 billion year-over-year.