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 brandpost Sponsored by VMware How to build a successful agile development culture - and why your business needs one Mastering agile: Addressing familiar challenges and common misconceptions for successful software development. By Mike Freedman, Senior Director, and Michael Coté, Senior Member of Technical Staff, VMware Tanzu by Broadcom May 20, 2024 6 mins Devops Software Development brandpost Sponsored by Broadcom Driving digital transformation success: Serge Lucio's insights on Value Stream Management Navigating the VSM landscape: Strategies for seamless digital transformation—a chat with Serge Lucio, General Manager of the Agile Operations Division at Broadcom By Marla Schimke, Head of Product and Growth Marketing, Broadcom's ValueOps Software Division May 20, 2024 4 mins Digital Transformation feature 10 projects top of mind for IT leaders today From embracing AI to modernizing infrastructure, IT leaders are focusing more on key business differentiators, risk mitigation, emerging issues, and transforming IT to accelerate change. By Mary Pratt May 20, 2024 11 mins Business IT Alignment Data and Information Security IT Strategy opinion Assembly required: 8 myths about knowledge management debunked Business leaders intent on fostering innovative cultures must differentiate between knowledge management and knowledge assembly. One involves systems, data, and collaboration; the other, insights, dialogue, serendipity, and courses of action. By Daniel Forrester and Jerold Zimmerman May 20, 2024 13 mins Content Management Systems Document Management Systems Staff Management 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