IBM BEATS Q1 ESTIMATES, STOCK FALLS 6%

AI DESK■ 1 MIN READ

WED, APR 22, 2026

■ AI-SUMMARIZED FROM 1 SOURCE ▸ TIMELINE

IBM reported first-quarter revenue of $15.92 billion, exceeding analyst estimates of $15.62 billion, with software revenue climbing 11% to $7.05 billion. Despite the beat and maintained full-year guidance, shares dropped 6% in after-hours trading.

The hardware, software, and consulting giant posted a 9% year-over-year revenue increase for the quarter. Software revenue growth of 11% outpaced overall company growth, reflecting IBM's ongoing pivot toward higher-margin business segments. The company maintained its forward guidance for fiscal year 2026, signaling confidence in its strategic direction. However, investors reacted negatively to the results, with the stock declining in extended trading following the announcement. The after-hours decline suggests market expectations may have extended beyond the reported beat on revenue estimates. IBM's ability to sustain software momentum and meet full-year targets will be closely watched by analysts and investors in coming quarters.

■ SOURCES

► Techmeme

■ SUMMARY WRITTEN BY AI FROM THE LINKS ABOVE

■ MORE FROM THE BIG TECH DESK

P376GOOGLE SEARCH FACES BACKLASH AS AI OVERHAUL DRIVES USERS AWAY

Google's I/O 2026 Search redesign, which replaced traditional blue links with AI agents, has triggered significant user exodus. DuckDuckGo installations surged 30% as customers reject the new direction.

JUST NOW— Industry Desk

P365TECH REPORTING GOES OFFLINE AS AI DATACENTRES TAKE CENTRE STAGE

The Guardian's global tech team is shifting from covering digital phenomena to investigating physical infrastructure, examining how massive datacentres powering the AI boom are reshaping technology journalism.

4H AGO— Industry Desk

P364COMMUNITIES PUSH BACK AGAINST AI DATA CENTER EXPANSION

Local opposition to artificial intelligence data centers is intensifying across the U.S. as communities worry about power grid strain and environmental impacts from the rapid buildout.

4H AGO— AI Desk

P358S&P CUTS ORACLE RATING OVER OPENAI DEPENDENCE

S&P Global downgraded Oracle's credit rating to BBB-, one notch above junk status, citing OpenAI as a "key credit risk." OpenAI represents roughly half of Oracle's $638 billion in contractual obligations.

6H AGO— AI Desk

◄ BACK TO NEWS

IBM BEATS Q1 ESTIMATES, STOCK FALLS 6%

■ MORE FROM THE BIG TECH DESK

■ SUBSCRIBE TO THE DAILY BRIEF