{"id":412412,"date":"2026-04-22T21:44:09","date_gmt":"2026-04-22T21:44:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/412412\/"},"modified":"2026-04-22T21:44:09","modified_gmt":"2026-04-22T21:44:09","slug":"ibm-revenue-growth-slows-amid-ai-concerns-shares-fall","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/412412\/","title":{"rendered":"IBM revenue growth slows amid AI concerns; shares fall"},"content":{"rendered":"\n<p class=\"yf-1fy9kyt\">April 22 (Reuters) &#8211; IBM&#8217;s revenue growth slowed in the first quarter on sluggishness in its software business, fanning fears of disruption from <a href=\"https:\/\/tech.yahoo.com\/ai\/\" data-ylk=\"slk:artificial \u200cintelligence;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;artificial \u200cintelligence&quot;}\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">artificial \u200cintelligence<\/a> tools and sending its shares down 6% after hours on Wednesday.<\/p>\n<p class=\"yf-1fy9kyt\">Concerns \u200cthat AI tools will eat into the software business have grown with the launch of AI tools \u200bthat can automate routine corporate functions.<\/p>\n<p class=\"yf-1fy9kyt\">IBM has especially been hit after Anthropic said in February one of its tools could help modernize COBOL, a language widely used on IBM mainframes.<\/p>\n<p class=\"yf-1fy9kyt\">Big Blue&#8217;s revenue increased 9% in the first quarter to $15.92 billion, slower than \u200cthe 12.2% growth in the \u2060previous quarter, even as it surpassed analysts&#8217; average estimate of $15.62 billion, according to data compiled by LSEG.<\/p>\n<p class=\"yf-1fy9kyt\">IBM&#8217;s software segment, anchored by its \u2060high-margin hybrid cloud unit Red Hat, and a suite of AI tools under the Watsonx brand, also posted slower revenue growth of 11.3%.<\/p>\n<p class=\"yf-1fy9kyt\">&#8220;The stakes around these results were \u200bhigher than \u200bnormal given the software\/services selling pressure the \u200bmarket has seen this year amid \u200cAI competition fears, and we do not think Q1\u2019s results validated those fears,&#8221; CFRA analyst Brooks Idlet said.<\/p>\n<p class=\"yf-1fy9kyt\">Growth in the company\u2019s infrastructure segment remained strong, helped by continued adoption of its latest mainframe systems. Revenue in the segment, which includes mainframe computers, grew 15.2% to $3.33 billion in the quarter.<\/p>\n<p class=\"yf-1fy9kyt\">IBM mainframes are secure, high-performance servers \u200cthat process millions of daily transactions for major \u200bbanks, airlines and retailers.<\/p>\n<p class=\"yf-1fy9kyt\">Analysts have said IBM&#8217;s deep \u200bcustomer ties and AI offerings, such \u200bas Watson Code Assistant, a coding modernization tool for the \u200cmainframe, could help it against rival AI \u200btools.<\/p>\n<p class=\"yf-1fy9kyt\">CFO James Kavanaugh told \u200bReuters clients using the tool are seeing faster growth in mainframe consumption.<\/p>\n<p class=\"yf-1fy9kyt\">&#8220;Gen AI in modernization of mainframe is actually an accelerator and accretive to \u200bthe mainframe portfolio overall,&#8221; he \u200ctold Reuters in an interview.<\/p>\n<p class=\"yf-1fy9kyt\">For the first quarter, IBM&#8217;s adjusted profit came \u200bin at $1.91 per share, compared with estimates of $1.81 apiece.<\/p>\n<p class=\"yf-1fy9kyt\">(Reporting by Anhata \u200bRooprai in Bengaluru; Editing by Maju Samuel)<\/p>\n","protected":false},"excerpt":{"rendered":"April 22 (Reuters) &#8211; IBM&#8217;s revenue growth slowed in the first quarter on sluggishness in its software business,&hellip;\n","protected":false},"author":2,"featured_media":412413,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,180967,61,60,180968,180969,8816,158749,180970,80],"class_list":{"0":"post-412412","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-ibm-mainframes","12":"tag-ie","13":"tag-ireland","14":"tag-mainframe-computers","15":"tag-mainframe-systems","16":"tag-revenue-growth","17":"tag-software-business","18":"tag-software-segment","19":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/412412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=412412"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/412412\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/412413"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=412412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=412412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=412412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}