IBM Revenue Climbs 9.5% to $15.92 Billion in Q1 2026
International Business Machines Corporation posted revenue of $15.92 billion for the three months ending March 31, 2026, up from $14.54 billion in the same period a year earlier. Net income rose 15% to $1.22 billion.
International Business Machines Corporation (NYSE: IBM), a global technology and consulting company, reported revenue of $15.92 billion for the first quarter of fiscal 2026, a 9.5% increase from $14.54 billion in the first quarter of fiscal 2025. Read more earnings reports.
Net income for the three months ending March 31, 2026 reached $1.22 billion, up 15% from $1.06 billion in the prior-year quarter. Diluted earnings per share climbed to $1.28 from $1.12, reflecting both stronger profitability and a slightly expanded share count.
Gross profit expanded to $8.95 billion from $8.03 billion, driven by improved sales volume. Cost of revenue rose to $6.97 billion from $6.51 billion. The company recorded research and development expenses of $2.17 billion, up from $1.95 billion, while selling, general and administrative expenses increased to $5.09 billion from $4.89 billion.
IBM generated $5.17 billion in cash from operations during the quarter, a notable improvement from $4.37 billion in the same quarter last year. Cash used in investing activities totaled $10.49 billion, less than the $12.98 billion deployed in the prior-year period. Financing activities brought in $2.72 billion compared to $5.44 billion a year earlier.
The company's balance sheet showed total assets of $156.23 billion as of March 31, 2026, up from $151.88 billion at the end of December 2025. Goodwill jumped to $74.71 billion from $67.72 billion at year-end. Long-term debt stood at $57.71 billion compared to $54.84 billion three months earlier.
Cash and cash equivalents declined to $10.82 billion from $13.59 billion at the end of 2025. Accounts receivable fell to $6.49 billion from $8.11 billion, while inventory rose to $1.48 billion from $1.22 billion.
Total liabilities increased to $123.17 billion from $119.14 billion as of December 31, 2025. Stockholders' equity edged up to $32.97 billion from $32.65 billion. The company had 939.9 million shares outstanding as of the period end.
Interest expense for the quarter totaled $473 million, compared to $455 million in the first quarter of fiscal 2025. Income tax expense was $172 million versus $103 million a year earlier.
Financial Summary
| Metric | Q1 FY2026 | Q1 FY2025 |
|---|---|---|
| Revenue | $15.92 billion | $14.54 billion |
| Gross Profit | $8.95 billion | $8.03 billion |
| Net Income | $1.22 billion | $1.06 billion |
| Diluted EPS | $1.28 | $1.12 |
| Cash from Operations | $5.17 billion | $4.37 billion |
| Total Assets | $156.23 billion | $151.88 billion* |
*As of December 31, 2025