What to Expect From International Business Machines' Q1 2026 Earnings Report

Armonk, New York-based International Business Machines Corporation (IBM) is a global technology and consulting company that provides enterprise software, cloud computing, artificial intelligence, and IT services. Valued at a market cap of $226.4 billion, the company is scheduled to announce its fiscal 2026 Q1 earnings after the market closes on Wednesday, Apr. 22.    

Ahead of this event, analysts expect this tech company to report a profit of $1.78 per share, up 11.3% from $1.60 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in each of the last four quarters.

For the current fiscal year, ending in December, analysts expect IBM to report a profit of $12.37 per share, up 6.7% from $11.59 per share in fiscal 2025. Furthermore, its EPS is expected to grow 7.5% year-over-year to $13.30 in fiscal 2027.

IBM has dipped 3.5% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 13.4% return and the State Street Technology Select Sector SPDR ETF’s (XLK) 24.1% uptick over the same time period. 

On Mar. 17, IBM shares popped 2.8% after the company completed its acquisition of Confluent to strengthen its AI and data capabilities. The combined offering creates a unified, real-time data platform that enables enterprises to deliver clean, governed, and continuously updated data across hybrid and on-premise environments. This integration aims to eliminate data silos and support the growing demand for AI-driven applications by providing scalable, real-time data access essential for deploying AI models and automated workflows effectively.

Wall Street analysts are moderately optimistic about IBM’s stock, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, nine recommend "Strong Buy," two indicate a “Moderate Buy,” 10 suggest "Hold,” and one advises “Strong Sell.” Its mean price target of $313.90 suggests a 29.9% premium to its current price levels.