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IBM Q1 Profit Beats as AI Adoption Drives Growth

Wall Street Journal US Business •
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IBM reported stronger first-quarter earnings driven by robust demand for artificial intelligence solutions. The technology giant posted a profit of $1.22 billion, or $1.28 per share, up from $1.06 billion a year earlier. Adjusted earnings of $1.91 per share exceeded Wall Street expectations of $1.81.

Artificial intelligence emerged as a key growth driver, with businesses increasingly adopting AI tools across operations. CFO Jim Kavanaugh noted that AI demand spanned both technology products and consulting services that help organizations deploy and scale AI systems. This momentum reflects IBM's strategic pivot toward hybrid cloud and AI capabilities.

The results signal continued strength in IBM's transformation strategy, positioning the company to capitalize on enterprise AI adoption. With businesses prioritizing AI integration, IBM's comprehensive offerings in both technology and professional services appear to be resonating with clients seeking end-to-end AI solutions.