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 feature The HP-Autonomy lawsuit: Timeline of an M&A disaster When Hewlett Packard bought knowledge management software firm Autonomy, it didn’t realize it was buying into a multibillion accounting cover-up. Shareholders sued HP, and HP sued Autonomy CEO Mike Lynch. Here’s how it played out over the By Peter Sayer Jun 07, 2024 9 mins HP Mergers and Acquisitions Enterprise Applications news Jury clears Autonomy CEO of fraud charges The case stemmed from Hewlett-Packard’s 2011 purchase of Autonomy for $11.1 billion. Some have blamed former CEO Meg Whitman for not testifying in the case. By Evan Schuman Jun 07, 2024 4 mins Fraud Legal Mergers and Acquisitions feature AES enlists AI to boost its sustainable energy business The American power supplier’s machine learning weather and output forecasting platform is fueling revenue growth while advancing the company’s renewable wind, solar, and energy storage goals. By Paula Rooney Jun 07, 2024 7 mins Energy Industry Digital Transformation Artificial Intelligence feature Top 8 IT certifications in demand today IT certifications can help you quickly gain and validate valuable skills and know-how in a domain that will further your career. Here are the most popular IT certs today. By Sarah K. White Jun 07, 2024 10 mins Certifications IT Skills Careers 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