IBM Revenue Surges 9% Despite AI Fears

IBM posted first-quarter revenue of $15.92 billion, a 9% rise that beat analyst expectations, though growth slowed from 12.2% the previous quarter. Concerns persist that AI tools, including Anthropic's COBOL modernisation technology, could undermine IBM's traditional software business. Despite this, IBM's infrastructure segment grew 15.2%, driven by strong mainframe adoption. CFO James Kavanaugh called generative AI an accelerator for mainframe growth, while adjusted earnings of $1.91 per share also exceeded forecasts. CEO Arvind Krishna dismissed concerns over Middle East disruption, citing record regional growth.