IBM Beats Q1 Estimates, Stock Still Tanks 6% After Hours
IBM posted strong Q1 numbers across the board but investors weren't impressed, sending shares down in extended trading.
IBM delivered a solid first quarter, posting $15.92 billion in revenue — a 9% year-over-year jump that topped Wall Street's $15.62 billion estimate. Software was the standout, climbing 11% to hit $7.05 billion.
None of that mattered to after-hours traders. The stock dropped roughly 6% in extended trading Wednesday despite the beat.
The company also held firm on its full-year 2026 guidance, signaling confidence in its trajectory across hardware, software, and consulting. But the market apparently wanted more than a modest beat and steady outlook.
It's a familiar story for Big Blue — deliver decent results, watch the stock slide anyway. Investors seem to be pricing in higher expectations for a company leaning hard into enterprise tech and AI-adjacent services.