IBM reported better-than-expected earnings and revenue for the first quarter on Wednesday.

Here’s how the company performed:

• Earnings per share: $1.60 adjusted vs. $1.40 expected
• Revenue: $14.54 billion vs. $14.4 billion expected

Revenue increased 0.6% in the quarter from $14.5 billion a year earlier, according to a statement. Net income slid to $1.06 billion, or $1.12 per share, from $1.61 billion, or $1.72 per share, in the same quarter a year ago.

For 2025, IBM reiterated its expectation for $13.5 billion in free cash flow and 5% revenue growth at constant currency. Management called for $16.4 billion to $16.75 billion in second-quarter revenue. The middle of the range, $16.58 billion, is ahead of the LSEG consensus of $16.33 billion.

“We remain bullish on the long-term growth opportunities for technology and the global economy,” IBM CEO Arvind Krishna said in the statement. “While the macroeconomic environment is fluid, based on what we know today, we are maintaining our full-year expectations for revenue growth and free cash flow.”

In the first quarter, software revenue rose 7% to $6.34 billion, in line with the consensus among analysts polled by StreetAccount.

IBM’s consulting unit contributed $5.07 billion in revenue, which was down 2% and slightly above StreetAccount’s $5.05 billion consensus.

The company’s infrastructure division, which includes mainframe computers, posted a 6% decline in revenue to $2.89 billion, higher than the $2.76 billion consensus. Earlier this month, IBM introduced its z17 mainframe. Infrastructure revenue growth generally picks up as customers adopt the next generation and then drifts down late in the cycle.

During the first quarter, IBM said it had settled its lawsuits with chip manufacturer GlobalFoundries. IBM also closed its $6.4 billion acquisition of cloud software maker HashiCorp and announced plans to buy data storage software startup DataStax for undisclosed terms.

IBM has been an outperformer this year as the broader market has sold off due largely to concerns around President Donald Trump’s tariffs and their potential impact on the economy. As of Wednesday’s close, IBM shares were up 11%, while the Nasdaq was down almost 14%.

The stock slipped 4% in extended trading.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

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