IBM has released its latest quarterly results, lending support to the company’s efforts to pivot to a hybrid cloud provider.
IBM announced in 2020 it planned to split into two companies, spinning off its legacy hardware business, with the core company focusing on hybrid cloud solutions. The company has since been on a spending spree, buying up smaller companies to help round out its offerings.
The company’s strategy appears to be paying off, if its latest quarterly results are any indication.
“Demand for hybrid cloud and AI drove growth in both Software and Consulting in the first quarter. Today we’re a more focused business and our results reflect the execution of our strategy,” said Arvind Krishna, IBM chairman and chief executive officer. “We are off to a solid start for the year, and we now see revenue growth for 2022 at the high end of our model.”
The company reported revenue of $14.2 billion, up 8%. Software revenue was up 12% and consulting revenue was up 13%, while infrastructure revenue was down 2%. Hybrid cloud revenue, however, was up 14%, coming in at $5 billion.
“In the first quarter we continued to strengthen the fundamentals of our business, consistent with our medium-term model,” said James Kavanaugh, IBM senior vice president and chief financial officer. “We are a faster growing, more profitable company with a higher-value business mix, a significant recurring revenue base and strong cash generation.”