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 Palo Alto Networks Web browsers: Reimagining remote work needs at the enterprise level What sets enterprise browsers apart? They are designed from the ground up as a security product with productivity in mind. Learn more today. By Ofer Ben-Noon, SASE CTO, Palo Alto Networks Apr 19, 2024 4 mins Cloud Computing feature How Southwest’s CIO modernized the airline through turbulence Thrown into the deep end as CIO, Lauren Woods drew on her transformation experience and a leadership style rooted in authenticity and courage to help get the airline back on course. By Sarah K. White Apr 19, 2024 9 mins Travel and Hospitality Industry Digital Transformation IT Leadership case study Travelex leverages cloud-based customer data platform to boost retention International prepaid travel cards are a great resource for travellers that offer improved safety and locked-in rates, and make it easier to calculate foreign currencies. Here, Hans van der Waal, Travelex’s global IT director, explains how the By Joanne Carew Apr 19, 2024 4 mins CIO Travel and Hospitality Industry ICT Partners news analysis Generative AI gold rush drives IT spending — with payoff in question Worldwide IT spending should grow by 8% this year, with AI hype and COVID-era device replacements helping to push the spending numbers up, Gartner predicts. By Grant Gross Apr 19, 2024 5 mins Generative AI Budgeting 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