GoKawiilIBM CEO Arvind Krishna appears at a Diwali celebration in the Oval Office of the White House in Washington on Oct. 21, 2025.
IBM shares slipped 6% in extended trading on Wednesday after the hardware, software and consulting provider reported stronger-than-expected first-quarter results but maintained full-year guidance.
Here's how the company did in comparison with LSEG consensus:
Earnings per share: $1.91 adjusted vs. $1.81 expected
$1.91 adjusted vs. $1.81 expected Revenue: $15.92 billion vs. $15.62 billion expected
IBM's revenue grew 9% year over year in the quarter, according to a statement. Net income of $1.22 billion, or $1.28 per share, increased from $1.06 billion, or $1.12 per share, in the fourth quarter of 2024. Adjusted earnings exclude acquisition-related adjustments.
Management reiterated its view for 2026, including over 5% revenue growth at constant currency and a $1 billion increase to free cash flow.
"Middle East developments didn't impact us in the first quarter," IBM CEO Arvind Krishna said on a conference call with analysts. "Uncertainties remain, but our diversity across businesses, geographies, industries, and large enterprise clients position us well." Iran's war against the U.S. and Iran broke out on Feb. 28.
IBM's first-quarter software revenue grew 11% to $7.05 billion, higher than the $7.02 billion consensus among analysts polled by StreetAccount. Revenue from consulting, at $5.27 billion, was up 4%, coming in just shy of StreetAccount's $5.28 billion consensus.