International Business Machines (IBM)
NYSE:IBM
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Earnings Data
Report Date
Jul 29, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
3.03Last Year’s EPS
2.8Same Quarter Last Year
Moderate Buy
Based on 18 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call portrays a predominantly positive operational and financial performance: broad-based revenue growth (6%), strong software and data momentum (software +8%, data +16%, ARR +10%), record first-quarter free cash flow (+13%), and margin expansion (operating pretax margin +140 bps). Strategic moves (Confluent close, Red Hat/OpenShift scale, IBM Z AI capabilities, IBM Bob GA, quantum progress) reinforce the software-led, hybrid cloud and AI narrative. Near-term negatives are manageable: consulting margin softness, an expected low-single-digit decline in infrastructure revenue for the year, Confluent-related dilution (~$600M) and macro/supply chain uncertainties that prompted conservative guidance posture. On balance, the positive metrics, clear AI-driven demand tailwinds, and reiterated 5%+ revenue and ~$1B free cash flow growth guidance outweigh the listed challenges.Company Guidance
Top-line Growth
Total revenue grew 6% in Q1 FY2026, driven by strong performance across software and infrastructure.
Free Cash Flow and Cash Position
Free cash flow was $2.2 billion, up 13% year-over-year — the highest first-quarter free cash flow in a decade — and IBM exited the quarter with $11.8 billion of cash.
Margin and Profitability Expansion
Operating pretax margin expanded by 140 basis points; adjusted EBITDA grew 17%; adjusted EBITDA margin expanded ~170 basis points; diluted operating EPS rose 19%.
Software Momentum and ARR
Software revenue grew 8% in the quarter; ARR was $24.6 billion, up 10% year-over-year. Management now expects software growth of 10%+ for the full year.
Data and Strategic M&A Contribution
Data revenue grew 16% (including inorganic contribution from Confluent, which closed in mid-March). Management cited Confluent as an immediate contributor to data growth and platform capability.
Red Hat and Hybrid Cloud Strength
Red Hat grew 10% (accelerating 2 points sequentially); OpenShift is a $2 billion ARR business; virtualization signings have exceeded $600 million since early 2024.
Infrastructure Outperformance — IBM Z
Overall infrastructure revenue grew 12%; hybrid infrastructure up 25%; IBM Z delivered a record quarter, growing 48% as AI and transaction-processing demand increased.
Productivity and Cost Savings
Since 2023 IBM has realized $4.5 billion of productivity savings and expects an additional $1 billion of savings in 2026, enabling reinvestment and margin expansion.
Consulting Signings and AI Integration
Consulting signings returned to growth (signings up 6%); generative AI represented about 30% of consulting backlog and ~30% of backlog penetration, supporting expected consulting revenue acceleration to low-to-mid single digits for the year.
Platform & Product Innovations
New product/technology milestones: IBM Bob (GA) delivering average developer productivity gains of 45%; watsonx additions and watsonx Orchestrate for model/workflow orchestration; Confluent closed; notable quantum research demonstrations and a blueprint toward quantum-classical supercomputing.
IBM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
IBM Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 22, 2026 | $251.86 | $231.08 | -8.25% |
Jan 28, 2026 | $292.49 | $307.49 | +5.13% |
Oct 22, 2025 | $284.31 | $281.83 | -0.87% |
Jul 23, 2025 | $277.00 | $255.88 | -7.62% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does International Business Machines (IBM) report earnings?
International Business Machines (IBM) is schdueled to report earning on Jul 29, 2026, After Close (Confirmed).
What is International Business Machines (IBM) earnings time?
International Business Machines (IBM) earnings time is at Jul 29, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is IBM EPS forecast?
IBM EPS forecast for the fiscal quarter 2026 (Q2) is 3.03.
