IBM Reports Steady Q1 Revenue Growth Amidst Profitability Challenges

International Business Machines Corporation (IBM) announced a modest revenue increase to $14.5 billion in the first quarter of fiscal 2025, marking a 1% rise compared to the previous year. However, the tech giant faced a significant downturn in net income and diluted earnings per share, which fell by 33% and 34% respectively.

Looking Ahead: IBM's Optimistic Forecast

Despite the mixed financial results, IBM projects a robust second quarter with anticipated revenues ranging between $16.4 billion and $16.8 billion. CEO Arvind Krishna highlighted the company's strong performance in software and the growing demand for generative AI, with a book of business exceeding $6 billion.

Market Reaction

Following the earnings report, IBM's stock experienced a slight decline of 1.66% in after-hours trading, reflecting investor sentiments.