StocksMediumUpdated×7•Originally published 22 April 2026•Updated 23 April 2026•
1 min read
IBM Shares Slide 8% Despite Q1 Earnings Beat as Consulting Segment Weakens
Key Facts
1IBM reported Q1 revenue of $15.92 billion, exceeding analyst estimates of $15.61 billion.
2IBM shares fell more than 8% in after-hours trading due to weakness in the consulting segment.
3Company revenue rose 9% year-over-year driven by strength in software and infrastructure segments.
IBM reported robust Q1 2026 financial results, with revenue reaching $15.92 billion and surpassing projections. However, the stock recorded a sharp decline of over 8% during extended trading on April 22, 2026, as revenue growth slowed to 9%. The company maintained its full-year guidance, signaling a cautious stance that prompted multiple analysts to cut their price targets. While EPS of $1.91 beat expectations, concerns remain regarding the consulting segment's weakness and AI's disruptive impact. Traders are now closely watching the $220 level as a potential key technical support area. Despite the volatility, the consensus remains a 'Moderate Buy' with a price target of $298.81.