A $1 Billion Reason to Buy the Dip in IBM Stock

International Business Machines Corporation (IBM) posted one of its strongest quarterly results in years, and the tech stock still sold off. Valued at a market cap of $218 billion, IBM stock is down 29% from all-time highs after a 9% decline last week. Should you buy the dip in IBM stock today?

Why IBM’s Q1 2026 Results Deserve a Second Look

IBM grew revenue 6% in Q1, the strongest first-quarter revenue growth the company has posted in over a decade.

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Its free cash flow rose 13% year-over-year (YoY) to $2.2 billion. IBM’s chief financial officer, Jim Kavanaugh, called it the highest first-quarter free cash flow in a decade and the best free cash flow margin in the company’s reported history.

• Operating earnings per share rose 19%.

• Adjusted EBITDA climbed 17%.

• Operating pre-tax margins expanded by 140 basis points.

These are the numbers of a business that is executing at a very high level.

Part of the…