IBM beats on earnings and revenue, maintains full-year guidance

Core Viewpoint - IBM reported better-than-expected earnings and revenue for the first quarter, but the stock slipped 4% in extended trading [1] Financial Performance - Revenue increased by 0.6% to $14.5 billion compared to $14.4 billion a year earlier [1][7] - Net income decreased to $1.06 billion, or $1.12 per share, down from $1.61 billion, or $1.72 per share, in the same quarter a year ago [1] Future Guidance - For 2025, IBM expects $13.5 billion in free cash flow and 5% revenue growth at constant currency [2] - Management forecasts second-quarter revenue between $16.4 billion and $16.75 billion, with a midpoint of $16.58 billion, exceeding the LSEG consensus of $16.33 billion [2] Segment Performance - Software revenue rose 7% to $6.34 billion, aligning with analyst consensus [3] - Consulting unit revenue was $5.07 billion, down 2%, slightly above the consensus of $5.05 billion [4] - Infrastructure division revenue declined by 6% to $2.89 billion, surpassing the $2.76 billion consensus [4] Strategic Moves - IBM settled lawsuits with GlobalFoundries and completed a $6.4 billion acquisition of HashiCorp, with plans to acquire DataStax for undisclosed terms [5] Market Context - IBM shares increased by 11% this year, contrasting with a nearly 14% decline in the Nasdaq [6]