Why IBM Stock Looks Undervalued After Its Q1 2026 Operating Margin Results

Key Takeaways for IBM Stock

• IBM posted revenue of $15,917 million in Q1 2026, up 9% year over year.
• Operating pre-tax margins expanded by 140 basis points, with EBIT reaching $2,504 million.
• Adjusted EPS came in at $1.91, beating the Street estimate of $1.81.
• TIKR’s model values IBM at around $365 by December 2030, implying roughly 34% total return from current levels.

See the full IBM income statement, margin history, and valuation model on TIKR. Explore IBM’s financials and build your own thesis for free →

IBM Stock’s Strongest Q1 in a Decade: What the Margin Expansion Says About 2026

International Business Machines Corporation (IBM) posted its strongest first-quarter revenue growth in over a decade following Q1 2026 earnings, with revenue reaching $15,917 million and a simultaneous 140-basis-point expansion in operating pre-tax margins that is not yet fully reflected in IBM stock’s current…