IBM Q1 Revenue Rises 9% to $15.92B; EPS Beats Estimates, Dividend Hiked
IBM reported first-quarter revenue of $15.92 billion, up 9% and surpassing the $15.61 billion consensus, while adjusted EPS hit $1.91 versus $1.81 estimates. Software revenue climbed 11%, infrastructure grew 15%, the board raised the quarterly dividend to $1.69, and shares slipped about 6% in after-hours trading.
1. First-Quarter Financial Results
In the first quarter, IBM posted revenue of $15.92 billion, representing a 9% year-over-year increase that outpaced the consensus estimate of $15.61 billion. Adjusted earnings per share reached $1.91, exceeding the $1.81 analyst forecast.
2. Segment Performance and AI Adoption
The software segment delivered an 11% revenue gain, while infrastructure revenue rose 15%, driven by robust demand for generative AI solutions and hybrid cloud deployments among enterprise clients.
3. Shareholder Return and Market Reaction
Following the earnings release, the board approved a raise in the regular quarterly cash dividend to $1.69 per share, payable June 10, 2026. Despite strong results, shares declined roughly 6% in extended trading on concerns over growth sustainability.
4. Outlook and Guidance
IBM reaffirmed its target of more than 5% constant currency revenue growth for the full year and projected a year-over-year increase of about $1 billion in free cash flow, citing AI as a continuing tailwind.