The tech giant saw revenue rise 8% for the first quarter of the year, as demand for its hybrid cloud software and consulting services spiked. Credit: Foundry IBM posted strong revenue numbers to start the year, as CEO Arvind Krishna continues to focus the company on hybrid cloud and AI. This was the first quarter IBM reported results since it spun out its managed infrastructure services business under the new name of Kyndryl. That business still contributed 5% of total revenue growth for the quarter but won’t count against IBM results from October, Krishna told analysts. Revenue for the first quarter of 2022 was $14.2 billion, which was up 8% from 2021 and beat analyst expectations of $13.9 billion. Net income from continuing operations jumped 64% to $662 million. IBM shares rose 3% on the news in after-market trading Tuesday evening. Krishna took over as CEO in April 2020, around a year after IBM closed its acquisition of Red Hat and started a pivot to helping customers run hybrid cloud. “Harnessing the power of technology such as hybrid cloud and AI remains essential as our clients face a number of strategic challenges and opportunities, whether it’s competing for talent, supply chain issues, inflation, cybersecurity or geopolitical instability,” Krishna told analysts after the results were announced. Both IBM’s software and consulting segments saw strong revenue growth, with software generating $5.8 billion, which was up 12% year-on-year, and consulting contributing $4.8 billion, which was up 13%. Infrastructure revenue fell slightly to $3.2 billion. IBM only recently announced its next-generation z16 mainframe, which will be available from May 31 this year. IBM also shed its Watson Health division this quarter, with CFO James Kavanaugh telling analysts that the expected divestiture is already included in the company’s improved guidance for the rest of the year. “IBM is now a very different company,” Krishna told analysts. “We have in effect changed our company’s trajectory and while much remains to be done, we are beginning to reap the rewards of our hard-earned efforts and we are confident in our trajectory for the year.” Related content news Boomi burnishes API management capabilities The launch version of the framework comes with four agents — Boomi Answers, Boomi DesignGen, Boomi DataDetective, and Boomi Scribe. By John Leyden May 10, 2024 4 mins APIs PaaS feature TIAA modernizes the customer journey with AI The financial services organization overhauled its customer service operations, weaving together machine learning models, generative AI, and customer journey mapping to improve customer experience and predict trouble points. By Paula Rooney May 10, 2024 6 mins CIO 100 Digital Transformation Artificial Intelligence feature 10 IT skills where expertise pays the most Data from Dice sheds light on 10 enterprise mainstay skills where IT pros who have honed their craft to expert level can earn five-figure salary premiums. By Sarah K. White May 10, 2024 8 mins Salaries IT Jobs IT Skills feature What is ERP? Enterprise resource planning systems explained Enterprise resource planning (ERP) systems standardize, streamline, and integrate processes across a wide range of business functions. Here’s what to know about these critical IT systems. By CIO staff and bart_perkins May 10, 2024 12 mins ERP Systems Enterprise Applications PODCASTS VIDEOS RESOURCES EVENTS SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe