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IBM (NYSE: IBM) recently announced mixed results for its first-quarter. The company continues to grow through partnerships. It is now making bigger inroads into the world of quantum computing.

IBM’s Financials

Revenues for the first quarter grew 4.4% to $14.3 billion, falling short of the Street’s estimates of $14.35 billion. Adjusted earnings of $1.36 a share was ahead of the $1.26 that the market had estimated.

By segment, revenues from Software that includes Hybrid Platform & Solutions and Transaction Processing grew 5.6% to $5.9 billion. Revenue from Consulting including Business Transformation, Technology Consulting, and Application Operations grew 8.2% to $5 billion. Revenue from Infrastructure including Hybrid Infrastructure and Infrastructure Support grew 0.1% to $3.1 billion.

IBM did not provide any outlook for the second quarter or the year. It did, however, mention that it expected constant currency revenue growth at the high end of the mid-single digit range.

IBM’s Growth

Recently, IBM announced a partnership with Siemens to develop a software solution for systems engineering, service lifecycle management, and asset management, by integrating their respective offerings. Together, the two companies will deliver a simulation-driven systems and software engineering solution designed to cover the entire operational lifecycle. The solution empowers customers to innovate by reducing development costs, driving continuous improvement, and creating operational efficiencies across the extended enterprise throughout the product’s operation lifecycle.

The combined SysML v1 standards-based suite of integrated engineering software will support traceability and sustainable product development using a digital thread that links mechanical, electronics, electrical engineering, and software design and implementation. The integrations will focus on the effective reuse of processes and materials to allow traceability for sustainable product development that can help companies make informed decisions earlier in the design and engineering process.

IBM’s Quantum Computing Strategy

IBM also announced an extended partnership with EY Global Services Limited to expand the IBM Quantum Network. As part of the relationship, EY will gain access to IBM’s fleet of quantum computers over the cloud, and will become part of the IBM Quantum Network’s community of organizations working to advance quantum computing.
After AI, Quantum computing is expected to be a rapidly emerging technology that will leverage the laws of quantum mechanics to solve problems. EY teams will use IBM’s quantum computer capabilities to explore solutions to enterprise challenges across finance, oil and gas, healthcare, and government.
EY had established its own Global Quantum Lab last year. Using IBM quantum technology, EY plans to conduct leading research to uncover transformative use cases such as reduction of CO2 emissions, improvement of safety and accuracy of self-driving cars, and for data processing and enterprise decision-making.

According to a recent report, the quantum computing market is estimated to grow at 38% CAGR to reach $4.4 billion by 2028 from $866 million this year. Analysts believe that the growth of the industry will be across various sectors including finance, space, defense, and research and development. IBM wants to gain the early mover’s advantage in this field.

IBM’s stock is currently trading at $125.31 with a market capitalization of $113.7 billion. It touched a 52-week high of $153.21 in November last year and a 52-week low of $115.55 in September.

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