IBM (NYSE:IBM) reported upbeat first-quarter results after Wednesday’s closing bell.

IBM reported quarterly earnings of $1.91 per share, which beat analyst estimates of $1.81 by 5.52%, according to Benzinga Pro data. Quarterly revenue of $15.92 billion beat the consensus estimate of $15.62 billion and was up from $14.54 billion in the prior year's quarter.

IBM expects more than 5% constant currency growth and an increase of approximately $1 billion in year-over-year cash flow in 2026.

“The first quarter was a strong start to the year with broad-based revenue growth across our segments. These results reflect the integrated value of our portfolio and the trust clients put in us to improve their operations. As clients scale use cases, AI continues to be a tailwind for our global business. IBM products and services are helping clients orchestrate, deploy and govern AI across hybrid environments,” said Arvind Krishna, IBM chairman, president and chief executive officer. “Given this strong start, we continue to expect more than 5 percent constant currency revenue growth and an increase of about $1 billion in year-over-year free cash flow in 2026.”

IBM shares dipped 6.8% to $234.45 in pre-market trading.

These analysts made changes to their price targets on IBM following earnings announcement.

  • BMO Capital analyst Keith Bachman maintained IBM with a Market Perform and lowered the price target from $290 to $270.
  • Morgan Stanley analyst Erik Woodring maintained the stock with an Equal-Weight rating and raised the price target from $215 to $225.

Considering buying IBM stock? Here’s what analysts think:

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