International Business Machines Corp ( IBM ) reported first-quarter financial results after the market close on Wednesday. Here’s a look at the key metrics from the quarter.

Q1 Earnings: IBM’s first-quarter revenue increased 1% year-over-year to $14.46 billion, which missed the consensus estimate of $14.55 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of $1.68 per share, which beat analyst estimates of $1.60 per share.

Software revenue was up 5% year-over-year, consulting revenue was flat and infrastructure revenue was down 1%. 

Cash flow from operations totaled $4.2 billion in the quarter. Free cash flow came in at $1.9 billion. IBM ( IBM ) ended the quarter with $19.3 billion in cash and marketable securities, up $5.8 billion from year-end 2023.

“We began the year with solid revenue and free cash flow growth, reflecting the strength of our hybrid cloud and AI strategy. We continue to capitalize on the excitement and demand for enterprise AI from our clients,” said Arvind Krishna, chairman and CEO of IBM ( IBM ).

“Our book of business for watsonx and generative AI again showed strong momentum, growing quarter over quarter, and has now eclipsed one billion dollars since we launched watsonx in mid-2023. As a result, for the full year, we continue to expect revenue performance in line with our mid-single digit model and about $12 billion in free cash flow.”

Outlook: IBM ( IBM ) expects full-year constant currency revenue growth in the mid-single digit range. The company also reiterated expectations for generating $12 billion in free cash flow in 2024.

In a separate press release, IBM ( IBM ) announced that it entered into a definitive agreement to acquire HashiCorp Inc ( HCP ) for $35 per share in cash, representing an enterprise value of $6.4 billion.

The boards of directors of IBM ( IBM ) and HashiCorp ( HCP ) have both approved the transaction. The acquisition is subject to approval by HashiCorp ( HCP ) shareholders. The transaction is expected to close by the end of 2024.

Management will hold a conference call to discuss its quarterly results at 5 p.m. ET.

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IBM Price Action: IBM ( IBM ) shares were down 4.14% after hours at $176.40 at the time of publication, according to Benzinga Pro.