IBM’s first-quarter revenue growth decelerated, driven by weakness in its software segment. Investors fear AI tools could automate and reduce demand for routine software services, sending IBM shares down 6.5% after hours. On the earnings call, CEO Arvind Krishna said regional disruptions, including Middle East tensions, had minimal impact on results.

• IBM shares fell 6.5% after hours following Q1 revenue growth that decelerated and missed expectations, driven by software segment weakness.
• Investors worry AI tools that automate routine corporate tasks could cut into IBM's traditional software sales, amid sluggish license renewals and slower cloud growth.
• The detailed summary's claim about Krishna citing "strongest growth in decades" in the Middle East and Strait of Hormuz resilience contradicts the top summary's statement that regional tensions had minimal impact—an inconsistency in the article itself.