IBM shares slide despite earnings beat

Published: 2026-04-23 02:31:37 ET IBM

IBM reported quarterly results that topped expectations - both at the top and bottom lines, although the decision to maintain its FY guidance left investors disappointed. The group posted adjusted EPS of $1.91, beating the $1.81 anticipated, on revenue of $15.92bn, up 9% y-o-y. Despite this performance, the stock fell significantly (about 6%) in after-hours trading, as markets had been pricing in an upward revision to the company's outlook.

Esteban Tesson

Published on 04/23/2026 at 02:31 am EDT

The company continues to target revenue growth of over 5% at constant currencies for 2026, alongside a $1bn increase in free cash flow. Breaking down the results, software revenue grew 11% to $7.05bn, while the consulting business reached 5.27bn, up 4%, although slightly missing estimates. Infrastructure posted 15% growth to $3.33bn, bolstered by a 51% surge in Z mainframe revenue.Net income came in at $1.22bn, compared to $1.06bn in the previous quarter. Since the start of the year, IBM shares have fallen by about 15%, underperforming the S&P 500, which is up 4%. Furthermore, the group finalized the $11bn acquisition of Confluent in mid-March, strengthening its position in data and streaming technologies.