International Business Machines Corporation (IBM) is scheduled to report first-quarter 2026 earnings on April 22. In the to-be-reported quarter, the company is likely to have recorded higher revenues from the Consulting segment, backed by rising demand for technology consulting and business transformation services.
The Consulting segment comprises Strategy and Technology (previously reported as Business Transformation and Technology Consulting) and Intelligent Operations (previously reported as Application Operations). It provides consulting and application management services that offer value and innovation to clients by leveraging industry, technology and business strategy and process know-how.
During the to-be-reported quarter, IBM collaborated with SEI Investments Company SEIC to speed up enterprise transformation using agentic AI, automation and modern technologies. Per the deal, IBM Consulting will work with SEI to review its systems and workflows using data-driven insights. The focus will be on advancing automation, process redesign and enterprise-wide modernization. IBM also partnered with E.SUN Bank to create Taiwan’s first enterprise-level AI governance framework for the banking sector. IBM Consulting and E.SUN Bank developed an AI governance system that reviews a bank’s current AI capabilities and manages the full AI lifecycle, starting from development and training to deployment and monitoring, ensuring AI systems remain transparent, reliable and accountable. These are likely to have generated additional revenues for the Consulting segment.
In the first quarter, IBM partnered with Contiem, a global provider of content software and services, to support the U.K. Ministry of Defense. The £320 million deal strengthens IBM’s position as a key government partner, highlighting its expertise in AI and defense IT. IBM will design, develop and deliver the platform, while supervising systems integration, AI, cloud and security, and coordinating partners like Contiem to ensure accurate and reliable defense equipment data across all domains. These are likely to have generated additional revenues for the Consulting segment.
The Zacks Consensus Estimate for Consulting revenues is pegged at $5.28 billion, indicating an improvement from $5.07 billion in the year-ago quarter.
The Zacks Consensus Estimate for total revenues for the company stands at $15.65 billion. It generated revenues of $14.54 billion in the prior-year quarter. The consensus mark for earnings is currently pegged at $1.81 per share, indicating growth from $1.6 in the year-earlier quarter.
