IBM Stock Rises on Earnings and AI Growth

IBM's stock price has increased as investors focus on its earnings and growth in artificial intelligence (AI) adoption. The company reported $17.0 billion in revenue for Q1 2026, a 0.6% year-over-year increase, with adjusted free cash flow of $1.9 billion in the same quarter.

Software revenue rose 9% year over year in Q1 2026, while infrastructure revenue increased 4%. The company's software growth is seen as a key driver of its overall performance, with Red Hat remaining an important product pillar inside this segment.

The market narrative around IBM stock now centers on whether AI-related bookings can continue to build on the Q1 2026 base. IBM has over $6 billion in generative AI business backlog at the end of Q1 2026, a figure that gives investors concrete revenue visibility beyond headlines.