Asks about importance of speed and data analysis in the age of AI.
Caroline
Arvind Krishna
Confluent moves data in real-time for enterprise analytics and AI agents. Regulatory environment is friendlier, enabling faster deal completion.
Asks if friendlier regulation should lead to more M&A given beaten-down software valuations.
Caroline
Arvind Krishna
Says 'watch this space' regarding M&A.
Asks where IBM wants to add to its portfolio.
Caroline
Arvind Krishna
Focus is on hybrid cloud and AI intersection. Sweet spot is hybrid cloud, AI, automation. Uses targeted acquisitions where multiples make sense and fit strategy.
Asks about deeper NVIDIA partnership and how faster, cheaper data analysis helps seal deals.
Caroline
Arvind Krishna
NVIDIA collaboration achieved 5x speed-up. Example with Nestle shows importance for massive data. Plan to scale to hundreds of clients.
Asks if Nestle uses IBM offerings versus competitors like Anthropic/OpenAI, and if this is a competitive threat.
Caroline
Arvind Krishna
IBM is model-agnostic, helps clients integrate best capabilities. Believes 2026 will be the year enterprises focus on AI ROI. Consultants help reduce costs in procurement, HR, finance.
Asks if investors misunderstood Anthropic's COBOL blog as a competitive threat.
Caroline
Arvind Krishna
States clearly: 'AI is a tailwind for us. It's not a mixed half-headwind, half-tailwind.'
Asks about AI-driven productivity leading to job cuts, referencing Block's 40% reduction.
Caroline
Arvind Krishna
IBM took $4.5B out with AI/automation, reinvested over $3B into R&D, sales, etc. Reshaping workforce, not net decrease. Will hire 2-3x more entry-level college grads this year.
Asks if IBM is halfway through previously stated 5-10% job displacement.
Caroline
Arvind Krishna
Probably halfway down that total journey, sticks to 5-10% range.
Asks how Middle East geopolitical instability affects consulting business.
Caroline
Arvind Krishna
About 20% of Middle East employees disrupted. Impact minor within a quarter due to long-cycle work. Consulting business in Middle East is single-digit % of total, so won't impact IBM's top/bottom line significantly.
Asks if consulting sales growth will return near term.
Caroline
Arvind Krishna
Second half of this year will be a lot better. Sees inflection: first half of last year negative, second half flattish. Expects continued improvement to slight growth in first part of year, but true growth in second half.
Asks about progress toward fault-tolerant quantum supercomputer by 2029 and integration into data centers.
Caroline
Arvind Krishna
Completely on track. Better qubits/processors being used for medical work at Cleveland Clinic and bond pricing at HSBC. Expect error correction demonstrated this year/next. Investing heavily in integrating classical and quantum computers.