IBM Beats Earnings Estimates but Faces AI Competition Concerns
IBM reported strong Q1 2026 earnings, beating estimates with $1.91 non-GAAP EPS and $15.92B revenue, but concerns over slowing growth in its software and consulting divisions, particularly in AI, led to a 9.47% stock drop. The company's consulting segment, which holds 80% of its generative AI business, grew just 1%, raising fears of competition from AI-native firms.
Topics: AI Competition Consulting Revenue Earnings Beat Software Growth Stock Price Movement