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International Business Machines (IBM) Q1 2026 earnings results (first quarter 2026)
10-Q filed Apr 23, 2026
International Business Machines (IBM) reported revenue of $15.9B for the first quarter 2026 (Q1 2026), +9% from a year earlier and -19% from the quarter before. Operating margin was 8.7%, net earnings $1.2B (7.6% of revenue).
International Business Machines, Q1 2026: revenue $15.9B (+10% year over year), operating margin 8.7%, net earnings $1.2B, operating cash flow $5.2B. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $15.9B | -19% | +9% |
| Gross profit | $8.9B | -25% | +11% |
| Operating profit | $1.4B | -67% | +20% |
| Net earnings | $1.2B | -78% | +15% |
| Operating cash flow | $5.2B | +28% | +18% |
| Free cash flow | $4.9B | +35% | +20% |
What changed
Revenue was $15.9B in Q1 2026, up 9% year over year and down 19% from the previous quarter. Sales was the largest line at 50% of revenue. Sales added $0.94B year over year (up 13%), 68% of the total change.
Gross margin was 56.2%, up 1.0 points from Q1 2025. Operating profit was $1.4B, a 8.7% margin (up 0.8 points year over year). Of the extra revenue versus Q1 2025, 17% reached operating profit, above the 8% margin then. Operating expenses grew 10% against revenue growth of 9%. The fastest-growing cost line was Other operating costs (+714%). Net earnings were $1.2B, up 15% year over year. The effective tax rate was 12.4%.
Operating cash flow was $5.2B (up 18% year over year), 425% of net earnings. Non-cash charges added back $1.3B of depreciation and amortization and $0.51B of share-based compensation. Working capital and other items added $2.2B. Capital expenditures of $0.23B left free cash flow of $4.9B.
Questions
What was International Business Machines' revenue in the first quarter 2026?
International Business Machines (IBM) reported revenue of $15.9B for the first quarter 2026 (Q1 2026), +9% from a year earlier and -19% from the quarter before.
Was International Business Machines profitable in the first quarter 2026?
Operating profit was $1.4B (8.7% of revenue) and net earnings $1.2B.