IBM

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Exhibit 99.1

IBM RELEASES SECOND-QUARTER RESULTS

Company provides updated full-year expectations

ARMONK, N.Y., July 22, 2026 . . . IBM (NYSE: IBM) today announced second-quarter 2026 earnings results.

“We are confident in IBM's strategy and portfolio, and in our ability to capture growth opportunities ahead. We fundamentally believe that we are in the early innings of a structural shift for business, and that our portfolio - across software, infrastructure, and consulting - is well-positioned to help our clients tap the value, and manage the challenges, of an AI-driven future," said Arvind Krishna, IBM chairman, president and chief executive officer. "In addition, we are taking action to accelerate our revenue growth and profitability, driving productivity across the company with AI and automation, and heavily investing in commercializing innovation at speed and scale. We now expect constant currency revenue growth in the range of four-to-five percent, and we continue to expect free cash flow to increase by about $1 billion year-over-year for the full year.”

Full-Year 2026 Expectations

•Revenue: The company now expects full-year constant currency revenue growth in the range of four-to-five percent. At current foreign exchange rates, currency is expected to be neutral to growth for the year

•Free cash flow: The company continues to expect full-year free cash flow to increase by about $1 billion year-over-year

Operational Focus Areas

•High-Growth Portfolio: Areas of IBM's software business that help clients manage, deploy and build AI-ready solutions, like Red Hat, the watsonx portfolio, HashiCorp, and Confluent continue to deliver strong performance. Within Distributed Infrastructure, Power and Storage grew at a record pace in the second quarter, now having built up an order backlog of nearly $500 million. Together, these offerings closely map to where client demand is strongest. To capture these growth opportunities, IBM is accelerating changes to its go-to-market model by expanding sales coverage across thousands of additional clients where there is significant opportunity. As AI adoption moves from experimentation to enterprise-scale deployment, the company is also investing in more specialized technical and client-facing talent, including Forward Deployed Engineers.

•Rapid Innovation at Scale: IBM is acting decisively to capture new opportunities as they arise. Lightwell, a new capability to address open source security vulnerabilities, leverages IBM and Red Hat's trust within the open source community, unique approach to AI, and global scale. In the first two weeks of availability, Lightwell has already made more than 7,500 open source patches available to help clients secure vulnerabilities. Additionally, quantum computing continues to be an investment priority for the company. In May, with the U.S. Department of Commerce, IBM announced a letter of intent to build Anderon, the world's first pure-play quantum wafer foundry. IBM will invest more than $10 billion in quantum over the next five years, and remains on track to deliver the first large-scale fault-tolerant quantum computer by 2029.

•Productivity Enables Investment and Value: IBM is accelerating productivity by scaling software development leveraging AI, increasing the effectiveness of its sales and marketing organization, and optimizing its supply chain. These efforts help enhance margin and free cash flow, and strengthen the company's ability to capture significant growth opportunities. The company now expects improved pre-tax income margin expansion for the full year.

“Although we faced revenue headwinds late in the second quarter, we continued to focus on the fundamentals of our business, including driving productivity, strengthening our portfolio, and generating free cash flow," said James Kavanaugh, IBM senior vice president and chief financial officer. "In a quarter like this, it is critical that our financial and operational discipline remains strong and that we continue to invest for growth while returning value to shareholders through our dividend.”

SECOND-QUARTER 2026 INCOME STATEMENT SUMMARY

RevenueGross ProfitGross Profit MarginPre-tax IncomePre-tax Income MarginNet IncomeDiluted Earnings Per Share

GAAP from Continuing Operations$17.2B$9.9B57.7%$2.5B14.4%$2.2B$2.27

Year/Year1%(1)%(1.0)Pts(5)%(0.9)Pts(1)%(2)%

Operating (Non-GAAP)$10.2B59.4%$3.3B19.2%$2.8B$2.93

Year/Year0%(0.7)Pts3%0.3Pts5%5%

Segment Results for Second Quarter

•Software — revenues of $7.8 billion, up 5 percent:

–Hybrid Cloud (Red Hat) up 11 percent

–Automation up 4 percent, up 3 percent at constant currency

–Data up 19 percent, up 18 percent at constant currency

–Transaction Processing down 8 percent, down 9 percent at constant currency

•Consulting — revenues of $5.3 billion, flat, up 1 percent at constant currency:

–Strategy and Technology flat, up 1 percent at constant currency

–Intellige

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Arvind Krishna's Letter to IBM Investors

ARMONK, N.Y., July 14, 2026 . . . IBM (NYSE: IBM)

IBM Investors –

This morning we are releasing selected preliminary second-quarter 2026 financial results. We are still working to close our financial reporting for the quarter and our final results could be slightly different.

For the second quarter:

Revenue:

-Revenue of $17.2 billion, up 1 percent

-Software revenue up 5 percent

-Consulting revenue flat, up 1 percent at constant currency

-Infrastructure revenue down 7 percent

Profit:

-Gross Profit Margin: GAAP: 57.7 percent, down 100 basis points; Operating (Non-GAAP): 59.4 percent, down 70 basis points

-Pre-Tax Income Margin: GAAP: 14.4 percent, down 90 basis points; Operating (Non-GAAP): 19.2 percent, up 30 basis points

Cash Flow:

-Year to date, net cash from operating activities of $7.8 billion; free cash flow of $4.8 billion

EPS:

-Diluted Earnings Per Share: GAAP: $2.27, down 2 percent; Operating (Non-GAAP): $2.93, up 5 percent

I want to spend some time explaining what we experienced in the quarter that led to the Software and Infrastructure performance shortfall you see above.

When we discussed our expectations with you in April, we noted that we would be wrapping on the launch of z17 in the second quarter. Given this was the strongest start to a mainframe program in our history, we expected Infrastructure revenue to decline low-single digits for the year, beginning this quarter. What played out was worse than our expectations, driven by a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing. In the last few weeks of June, we saw clients shift their quarterly capex spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases. This dynamic impacted client buying patterns. While we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization. In addition, clients were distracted with rapidly-evolving, industry-wide cybersecurity concerns in the quarter.

These conditions require our teams to execute perfectly, and this quarter we faltered. We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall.

These are not excuses, but they are realities. Our job is to help our clients through uncertainty, to find paths forward to grow their businesses no matter what is happening in the external environment.

While our second-quarter results are disappointing, our performance in many areas showed strength, reinforcing the conviction we have in our portfolio and strategy.

-Within Software, Red Hat revenue growth accelerated sequentially to 11 percent

-Recent acquisitions including both HashiCorp and Confluent delivered strong performance

-With clients prioritizing infrastructure investments, Distributed Infrastructure had its best performance in reported history, up 37 percent with strong growth in Power and Storage, and a backlog of approximately $500 million exiting the quarter

-Despite challenges this quarter, z17 remains at nearly 130 percent program-to-program, well ahead of z16 which was our strongest program on record, with clients representing 85% of installed MIPs maintaining or growing capacity

-Continued growth in Consulting signings led by strong GenAI contribution

-Productivity initiatives contributed to continued operating (non-GAAP) PTI Margin expansion in the quarter

Importantly, we continue to innovate at speed and scale. After the introduction of Mythos, our teams across IBM and Red Hat quickly mobilized to take advantage of an unprecedented opportunity, launching Lightwell. Lightwell is a $5 billion commitment backed by new frontier AI capabilities and a global force of more than 20,000 engineers creating a trusted enterprise clearinghouse to address open source software vulnerabilities. Early adopters include organizations like Bank of America, BNY, Citi, Goldman Sachs, JPMorganChase, Mastercard, Morgan Stanley, Royal Bank of Canada, State Street, Visa, Wells Fargo and more. General availability of Lightwell was announced on July 8.

Finally, quantum computing is no longer decades away, it is upon us, and we are investing aggressively. Recently, with the U.S. Department of Commerce, we announced a letter of intent to build Anderon, the world’s first pure-play quantum wafer foundry supported by $1 billion in CHIPS incentives provided by the DoC and a $1 billion cash contribution by IBM. Shortly after that, we disclosed plans to invest more than $10 billion in quantum over the next five years, spanning R&D, capex, manufacturing scaling, M&A and ecosystem expansion. We remain on track to deliver the first large-scale fault-tolerant quantum computer by 2029.

While performance in the quarter was below our exp

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Exhibit 99.1

IBM RELEASES FIRST-QUARTER RESULTS

Double-digit Software and Infrastructure revenue growth; Strong margin expansion and double-digit profit and free cash flow growth

ARMONK, N.Y., April 22, 2026 . . . IBM (NYSE: IBM) today announced first-quarter 2026 earnings results.

“The first quarter was a strong start to the year with broad-based revenue growth across our segments. These results reflect the integrated value of our portfolio and the trust clients put in us to improve their operations. As clients scale use cases, AI continues to be a tailwind for our global business. IBM products and services are helping clients orchestrate, deploy and govern AI across hybrid environments," said Arvind Krishna, IBM chairman, president and chief executive officer. "Given this strong start, we continue to expect more than 5 percent constant currency revenue growth and an increase of about $1 billion in year-over-year free cash flow in 2026.”

First-Quarter Highlights

•Revenue

–Revenue of $15.9 billion, up 9 percent, up 6 percent at constant currency

–Software revenue up 11 percent, up 8 percent at constant currency

–Consulting revenue up 4 percent, up 1 percent at constant currency

–Infrastructure revenue up 15 percent, up 12 percent at constant currency

•Profit

–Gross Profit Margin: GAAP: 56.2 percent, up 100 basis points; Operating (Non-GAAP): 57.7 percent, up 110 basis points

–Pre-Tax Income Margin: GAAP: 8.7 percent, up 80 basis points; Operating (Non-GAAP): 13.4 percent, up 140 basis points

•Cash Flow

–Year to date, net cash from operating activities of $5.2 billion; free cash flow of $2.2 billion

FIRST-QUARTER 2026 INCOME STATEMENT SUMMARY

RevenueGross ProfitGross Profit MarginPre-tax IncomePre-tax Income MarginNet IncomeDiluted Earnings Per Share

GAAP from Continuing Operations$15.9B$8.9B56.2%$1.4B8.7%$1.2B$1.28

Year/Year9 % (1) 11%1.0Pts20%0.8Pts15%14%

Operating (Non-GAAP)$9.2B57.7%$2.1B13.4%$1.8B$1.91

Year/Year12%1.1Pts23%1.4Pts20%19%

(1) 6% at constant currency.

“Our solid revenue growth, portfolio mix and productivity initiatives drove double-digit profit and free cash flow growth in the quarter," said James Kavanaugh, IBM senior vice president and chief financial officer. "The durability of our portfolio combined with our disciplined execution continues to give us the financial flexibility needed to both invest in our business and return value to shareholders through our dividend.”

Segment Results for First Quarter

•Software — revenues of $7.1 billion, up 11 percent, up 8 percent at constant currency:

–Hybrid Cloud (Red Hat) up 13 percent, up 10 percent at constant currency

–Automation up 10 percent, up 7 percent at constant currency

–Data up 19 percent, up 16 percent at constant currency

–Transaction Processing up 6 percent, up 2 percent at constant currency

•Consulting — revenues of $5.3 billion, up 4 percent, up 1 percent at constant currency:

–Strategy and Technology up 4 percent, up 1 percent at constant currency

–Intelligent Operations up 4 percent, up 1 percent at constant currency

•Infrastructure — revenues of $3.3 billion, up 15 percent, up 12 percent at constant currency:

–Hybrid Infrastructure up 28 percent, up 25 percent at constant currency

•IBM Z up 51 percent, up 48 percent at constant currency

•Distributed Infrastructure up 17 percent, up 13 percent at constant currency

–Infrastructure Support down 2 percent, down 6 percent at constant currency

•Financing — revenues of $0.2 billion, up 15 percent, up 10 percent at constant currency

Cash Flow and Balance Sheet

In the first quarter, the company generated net cash from operating activities of $5.2 billion, up $0.8 billion year to year. IBM’s free cash flow was $2.2 billion, up $0.3 billion year to year. The company returned $1.6 billion to shareholders in dividends in the first quarter and invested in the acquisition of Confluent.

IBM ended the first quarter with $11.8 billion of cash, restricted cash and marketable securities, down $2.6 billion from year-end 2025. Debt, including IBM Financing debt of $12.8 billion, totaled $66.4 billion, up $5.1 billion year to date.

Full-Year 2026 Expectations

•Revenue: The company continues to expect full-year constant currency revenue growth of more than 5 percent. At current foreign exchange rates, currency is expected to be about a half-point to one-point tailwind to growth for the year

•Free cash flow: The company continues to expect full-year free cash flow to increase by about $1 billion year-over-year

Dividend Declaration

The IBM board of directors declared an increase in the regular quarterly cash dividend to $1.69 per common share, payable June 10, 2026 to stockholders of record as of May 8, 2026.

This is the 31st year in a row that IBM has increased its quarterly cash dividend. IBM has paid consecutive quarterly dividends since 1916.

Forward-Looking and Cautionary Statements

Except for the