For the first quarter of 2022, net income at U.S. International Business Machines Corp. IBM declined 23% to $733 million, or $0.81 per share, compared to $955 million, or $1.06 per share, for the same period a year earlier.

The company said it reported nonrecurring earnings of $1.4 per share in the January-March period.

IBM’s quarterly revenue rose 8% to $14.2 billion from $13.19 billion.

Experts surveyed by FactSet, on average, predicted IBM’s Q1 adjusted earnings of $1.39 per share on revenue of $13.78 billion.

Last quarter, IBM’s software segment revenue increased 12% to $5.77 billion, consulting revenue grew 13% to $4.83 billion, and infrastructure revenue declined 2% to $3.22 billion.

Revenue in the company’s important hybrid cloud business across all segments jumped 14% to $5 billion. For the 12 months through March 2021, revenue in this area increased 17% to $20.8 billion.

The company maintained its previous forecast for 4-6% (mid-single-digit growth) revenue growth in 2022, excluding the Kyndryl division spin-off and currency changes. However, IBM noted that it expects a percentage increase in revenue by a number out of the upper end of its forecast.

FactSet analysts, meanwhile, expect the company’s annual revenue to increase 5.3% to $60.38 billion.

The forecast for the free cash flow metric is also maintained at $10-10.5 billion, with a greater likelihood that it will end up closer to the lower end of the announced range. This will happen because the company does not expect cash inflows from the Russian market, said James Cavanaugh, the company’s chief financial officer. In 2021, IBM’s business in Russia generated revenue of $300 million and profit of about $200 million.