Investing.com -- Technology giant IBM reported a 9% jump in its first-quarter revenue and also beat street estimates on Wednesday, helped by double-digit software and infrastructure revenue growth.

However, shares of the company were down about 6% in extended trading.

Enterprise demand for generative AI and hybrid cloud, which lets companies run applications and store data across their own data centers and public clouds, is surging as businesses automate workflows.

IBM’s Q1 revenue for the quarter came in at $15.92 billion versus the consensus estimate of $15.61 billion. The company reported 11 percent rise in in its software segment’s revenue and 15% jump in its infrastructure revenue.

Its Q1 adjusted EPS of $1.91, $0.10 better than the analyst estimate of $1.81.

The company continues to expect full-year constant currency revenue growth of more than 5 percent. At current foreign exchange rates, currency is expected to be about a half-point to one-point tailwind to growth for the year, it said.

"The first quarter was a strong start to the year with broad-based revenue growth across our segments. These results reflect the integrated value of our portfolio and the trust clients put in us to improve their operations. As clients scale use cases, AI continues to be a tailwind for our global business. IBM products and services are helping clients orchestrate, deploy and govern AI across hybrid environments," said Arvind Krishna, IBM chairman, president and chief executive officer.

"Given this strong start, we continue to expect more than 5 percent constant currency revenue growth and an increase of about $1 billion in year-over-year free cash flow in 2026," Krishna added.

The IBM board of directors declared an increase in the regular quarterly cash dividend to $1.69 per common share, payable June 10, 2026 to stockholders of record as of May 8, 2026.