{"id":600279,"date":"2026-04-22T20:50:26","date_gmt":"2026-04-22T20:50:26","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/600279\/"},"modified":"2026-04-22T20:50:26","modified_gmt":"2026-04-22T20:50:26","slug":"ibm-tops-quarterly-estimates-on-hybrid-cloud-growth","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/600279\/","title":{"rendered":"IBM tops quarterly estimates on hybrid cloud growth"},"content":{"rendered":"\n<p class=\"yf-1fy9kyt\">April 22 (Reuters) &#8211; IBM beat first-quarter profit estimates on Wednesday as <a href=\"https:\/\/tech.yahoo.com\/ai\/\" data-ylk=\"slk:artificial intelligence;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 intelligence&quot;}\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> adoption boosted demand for its software services used \u200cfor managing large amounts of data and automating IT processes.<\/p>\n<p class=\"yf-1fy9kyt\">However, shares \u200cof the company were down about 6% in extended trading.<\/p>\n<p class=\"yf-1fy9kyt\">Enterprise demand for generative AI and hybrid \u200bcloud, which lets companies run applications and store data across their own data centers and public clouds, is surging as businesses automate workflows.<\/p>\n<p class=\"yf-1fy9kyt\">IBM&#8217;s software segment, anchored by its high-margin hybrid cloud unit Red Hat, and a suite of \u200cAI tools under the Watsonx \u2060brand, grew 11.3% in the first quarter.<\/p>\n<p class=\"yf-1fy9kyt\">Big Blue&#8217;s infrastructure segment, which includes its mainframe computers, has been a bright \u2060spot for over a year, as adoption of the latest generation, z17, continues. Revenue in the segment grew 15.2% to $3.33 billion in the quarter.<\/p>\n<p class=\"yf-1fy9kyt\">IBM mainframes are secure, \u200bhigh-performance \u200bservers that process millions of daily transactions \u200bfor major banks, airlines and \u200cretailers.<\/p>\n<p class=\"yf-1fy9kyt\">Investors have also been watching for signs that AI could threaten parts of IBM&#8217;s business after shares took a hit in February, when Anthropic said its Claude Code tool could help modernize COBOL, a language widely used on IBM mainframes.<\/p>\n<p class=\"yf-1fy9kyt\">Analysts have pushed back on those fears, saying IBM&#8217;s deep customer \u200cties and broader AI offerings, including Watson \u200bCode Assistant, a coding modernization tool for \u200bthe mainframe.<\/p>\n<p class=\"yf-1fy9kyt\">CFO James Kavanaugh said \u200bclients using the tool are seeing faster growth in mainframe \u200cconsumption.<\/p>\n<p class=\"yf-1fy9kyt\">&#8220;Gen AI in modernization of mainframe \u200bis actually an accelerator \u200band accretive to the mainframe portfolio overall,&#8221; he told Reuters in an interview.<\/p>\n<p class=\"yf-1fy9kyt\">For the first quarter, IBM reported revenue of $15.92 billion, beating \u200banalysts&#8217; average estimate of $15.62 \u200cbillion, according to data compiled by LSEG. Adjusted profit came in \u200bat $1.91 per share, compared with estimates of $1.81 apiece.<\/p>\n<p class=\"yf-1fy9kyt\">(Reporting by Anhata Rooprai \u200bin Bengaluru; Editing by Maju Samuel)<\/p>\n","protected":false},"excerpt":{"rendered":"April 22 (Reuters) &#8211; IBM beat first-quarter profit estimates on Wednesday as artificial intelligence adoption boosted demand for&hellip;\n","protected":false},"author":2,"featured_media":600280,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,7258,39426,1873,223937,261177,107405,261176,206122,74],"class_list":{"0":"post-600279","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-data-centers","12":"tag-extended-trading","13":"tag-generative-ai","14":"tag-ibm-mainframes","15":"tag-mainframe-computers","16":"tag-profit-estimates","17":"tag-public-clouds","18":"tag-software-segment","19":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/600279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=600279"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/600279\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/600280"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=600279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=600279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=600279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}