Is IBM the Dark Horse of AI? $6 Billion in Bookings Signal a New Era!

International Business Machines Corporation (IBM) delivered solid performance in its first-quarter 2025 results, exhibiting a combination of strengths and challenges as it continues to pursue its strategic focus on hybrid cloud and artificial intelligence (AI). IBM reported a total revenue of $14.5 billion for the quarter, marking a 2% increase at constant currency from the previous year. This growth was primarily driven by robust performance in the Software segment which rose by 9% thanks to advancements across Red Hat, Automation, Data, and Transaction Processing. Red Hat continued to display strong momentum, with high teens growth in bookings supported by increasing demand for its virtualization and AI capabilities. Moreover, Software’s annual recurring revenue grew to $21.7 billion, a significant 11% increase since last year, underscoring the stability and growth potential of IBM’s high-value, recurrent revenue base. These developments are seen as strong pillars supporting IBM’s strategy of driving sustainable growth through enhanced software capabilities.