IBM Q1 earnings beat expectations

What happened: IBM reported Q1 2026 earnings on April 27, 2026, with net income up 15% YoY to $1.2bn and EPS of $1.28, beating expectations. However, its stock fell 7% in premarket trading due to softer software momentum. Intel, meanwhile, reported strong Q1 results on April 28, 2026, with earnings topping estimates, driving its stock up 16%.

Market impact: IBM's mixed performance led to a sell-off in software names like ServiceNow and Oracle, with investors concerned about AI competition eroding IBM's consulting franchise. Intel's results, however, boosted the semiconductor sector, signaling a potential revival for the struggling chipmaker.

What to watch next: IBM's full-year outlook, scheduled to be announced in its Q2 2026 earnings report on July 28, 2026, will provide clarity on its growth prospects. Additionally, Intel's Q2 2026 earnings on July 27, 2026, will be closely watched to confirm its recent momentum. Lastly, the AI sector's performance and any regulatory developments around AI could further influence IBM's stock performance.