IBM Reports 9 Percent Revenue Growth in First Quarter 2026

IBM reported first quarter 2026 results with revenue of 15.9 billion dollars, up 9 percent from the previous year, announced in a press release. Software revenue rose 11 percent, consulting increased 4 percent, and infrastructure grew 15 percent. Revenue growth at constant currency was 6 percent.

Gross profit margin reached 56.2 percent under GAAP, an increase of 100 basis points. Operating profit margin was 57.7 percent, up 110 basis points. Pre tax income margin stood at 8.7 percent on a GAAP basis and 13.4 percent on a non GAAP basis.

IBM generated 5.2 billion dollars in net cash from operating activities and 2.2 billion dollars in free cash flow. Arvind Krishna, chairman and chief executive officer, said the quarter showed broad based revenue growth and continued demand for AI solutions across hybrid environments. The company reaffirmed its expectation of more than 5 percent constant currency revenue growth and a 1 billion dollar increase in free cash flow for the year.