IBM reported first-quarter 2026 revenue of $15.9 billion, up 9% year-over-year, driven by growth across software, consulting, and infrastructure segments. Software revenue rose 11%, while infrastructure posted a 15% increase, reflecting strong demand tied to AI and hybrid cloud adoption.

Profitability also improved, with gross margin reaching 56.2% and operating margins expanding, while free cash flow totaled $2.2 billion for the period. The company highlighted AI as a key growth driver, helping clients deploy and manage solutions across hybrid environments.

IBM reaffirmed its full-year outlook, expecting more than 5% revenue growth in constant currency and an increase of about $1 billion in free cash flow.

Source: PR Newswire