The American technology major’s total revenue for the reported quarter remained flat at around $14.25bn, compared to revenue of $14.2bn earned in Q1 2022 with its software unit earning $5.9bn and consulting business posting revenues of $4.96bn
IBM reported net income of $927m for the first quarter of 2023. (Credit: Mark Ahsmann/Wikimedia Commons)
International Business Machines (IBM) has reported a net income of $927m for the first quarter of 2023 (Q1 2023) that ended 31 March 2023, an increase of 26% compared to $733m in the same quarter of the previous year.
Its earnings per share (EPS) for Q1 2023 was $1.01, compared to $0.81 in Q1 2022, which represents a growth of 24.7%.
The company’s total revenue for the reported quarter remained flat at around $14.25bn, compared to revenue of $14.2bn earned in Q1 2022.
IBM’s software unit which includes hybrid platform and solutions and transaction processing posted revenues of $5.92bn in Q1 2023, which is a year-over-year (YoY) increase of 2.6%, compared to $5.77bn in Q1 2022.
Red Hat’s revenues in the reported quarter were up by 8% YoY.
IBM’s consulting business, which includes business transformation, technology consulting, and application operations, reported a 2.9% growth in Q1 2023 revenues to $4.96bn. The revenues for the unit in Q1 2022 were $4.82bn.
The company’s infrastructure business posted revenues of $3.09bn in the reported quarter, which is a decrease of 3.7%, compared to $3.21bn earned in Q1 2022. The business includes hybrid Infrastructure and infrastructure support.
IBM’s financing businesses posted revenues of $196m in the reported quarter at a growth of 27.3%, compared to $154m in Q1 2022.
The company stated that it expects a constant currency revenue growth of 3% to 5%.
IBM chairman and CEO Arvind Krishna said: “Our first quarter results demonstrate that clients continue turning to IBM for our unique combination of an open hybrid cloud platform, enterprise-focused AI, and business expertise to unlock productivity and drive efficiency in their operations.
“This gives us confidence in our current growth expectations for revenue and free cash flow for the year.”
In February 2023, IBM announced the acquisition of California-based StepZen in a move to support enterprises in realising more business value from their data and application programming interfaces.