IBM (IBM) official guidance

Our operating tax rate for the year should be in the mid-teens.

Our operating tax rate for the year should be in the mid-teens, and the timing of discrete items can cause the rate to vary within the year.

Our operating tax rate for the year should be in the mid-teens%, and the timing of discrete items can cause the rate to vary within the year.

“For the full year, we continue to expect constant currency revenue growth in the range of four-to-five percent, and we now expect free cash flow to increase by more than $1 billion year-over-year.”

We continue to expect to grow free cash flow by about $1 billion this year as we accelerate our productivity initiatives.

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

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

Consistent with our Investor Day model, we expect to sustain constant currency revenue growth of 5%+ in 2026, and free cash flow to be up about $1 billion year-over-year, growing high single digits.

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

As a result, we now expect to deliver 100 basis points of operating pre-tax margin expansion, with productivity more than offsetting the revenue-related headwinds.

The company now expects improved pre-tax income margin expansion for the full year.

While we are absorbing incremental dilution given the early closing of Confluent, actions we are taking to accelerate our cost synergies enable us to stay on track to expand operating pre-tax margins by about a point this year.

For the full year, we expect IBM's operating pre-tax margin to expand by about 1 point.

In consulting, the quality of our backlog and momentum in GenAI continue to support an acceleration in revenue growth to low to mid-single digits for the year.

In consulting, our backlog levels and momentum in GenAI, with backlog penetration over 25%, support an acceleration in revenue growth to low- to mid-single digits for the year.

We feel pretty good about getting back to market growth levels in 2026.

In light of the strong demand environment in Power and Storage, we now expect infrastructure to grow low single digits in 2026, driven by growth in Distributed Infrastructure and continued strong program-to-program performance in IBM Z through the second half of the year.

We expect infrastructure revenue to be down low single digits, about a 0.5-point impact to IBM, with Z growth in the first quarter balanced by product cycle dynamics throughout the rest of the year.

Given the second quarter shortfall, we are revising our software growth expectation to a range of 6%-8% for the full year.

Our revenue expectations are underpinned by our durable and accelerating software business, which we expect to grow 10% this year.

Our Software model shared at Investor Day, approaching double digits, that is all in, that has two to three points, give or take, at each year, maybe a point more and maybe a point less, depending on our discipline capital allocation around M&A of inorganic contribution and six to seven to eight points of organic.

“For the full year, we continue to expect constant currency revenue growth in the range of four-to-five percent, and we now expect free cash flow to increase by more than $1 billion year-over-year.”

We now expect revenue growth for the full year in a range of 4%-5%.

•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

The strong start to the year drives our confidence in delivering constant currency revenue growth of 5%+ in 2026 and free cash flow growth of about $1 billion year-over-year.

•Revenue: The company continues to expect full-year constant currency revenue growth of more than 5 percent.

Consistent with our Investor Day model, we expect to sustain constant currency revenue growth of 5%+ in 2026, and free cash flow to be up about $1 billion year-over-year, growing high single digits.

•Revenue: The company expects 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 tailwind to growth for the year

We anticipate absorbing about $600 million of dilution from Confluent in 2026, driven largely by stock-based compensation and interest expense.