IBM shares turn lower as company beats but opts to maintain guidance

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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:

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.