The stock of IBM (IBM) is down 7% after the technology company maintained its forward guidance, disappointing analysts and investors.
IBM reported first-quarter earnings per share (EPS) of $1.91 U.S., which topped the $1.81 U.S. expected on Wall Street.
Revenue during the period totaled $15.92 billion U.S., which was ahead of the $15.62 billion U.S. consensus forecast among analysts. Sales were up 9% from a year earlier.
Despite the strong print, management at IBM reiterated their 2026 guidance, including over 5% revenue growth and a $1 billion U.S. increase to free cash flow.
Wall Street had been looking for IBM to raise its forward guidance.
IBM’s first-quarter software revenue grew 11% to $7.05 billion U.S., higher than the $7.02 billion U.S. consensus among analysts.
Sales from the company’s massive information technology (IT) consulting business came in at $5.27 billion U.S., up 4% year-over-year.
In mid-March, IBM completed its $11 billion U.S. acquisition of data streaming software company Confluent.
The stock of IBM has taken a hit in recent months over concerns that artificial intelligence (A.I.) will disrupt its business.
In February, IBM’s shares fell 13% in a day after A.I. startup Anthropic said its technology could assist companies with modernizing code written in the COBOL programming language.
IBM’s stock is up 3% over the last 12 months and trading at $251.86 U.S. per share.
Tech Insider
