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 Huawei Leading infrastructure to accelerate electric power intelligence By David Sun, Vice President of Huawei CEO of Electric Power Digitalization Business Unit, Huawei Apr 28, 2024 7 mins Energy Efficiency Huawei feature TransUnion transforms its business with IT On the heels of its Neustar acquisition, the consumer credit reporting agency seeks to give customers access to its troves of consumer data to fuel next-generation services through solutions platform OneTru. By Paula Rooney Apr 26, 2024 6 mins Financial Services Industry Digital Transformation Artificial Intelligence feature The 10 highest-paying industries for IT talent The tech industry isn’t the only hot spot for IT jobs, as there’s a growing demand for IT pros across every industry. These 10 verticals pay the most for IT roles, according to data from Dice. By Sarah K. White Apr 26, 2024 7 mins Salaries IT Jobs Careers brandpost Sponsored by Palo Alto Networks M&A action is gaining momentum, are your cloud security leaders prepared? Direct visibility is critical in M&A, and cloud-native application protection platforms (CNAPP) are ideal to provide this capability. By Amol Mathur, SVP & GM of Prisma Cloud, Palo Alto Networks Apr 25, 2024 4 mins Cloud 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