In the latest quarter, revenue fell 6.5% to $20.37 billion, missing analysts' projections, according to FactSet. Shares fell 6.8% in after-hours trading. IBM's stock closed at $131.65 on Thursday, down 5.4% over the past year. IBM, which had suspended financial projections last year over uncertainty about the pandemic's business impact, said Thursday that it expects revenue to grow this year and anticipates $11 billion to $12 billion in adjusted free cash flow for the year and $12 billion to $13 billion in 2022. "The actions we are taking to focus on hybrid cloud and [artificial intelligence] will take hold, giving us confidence we can achieve revenue growth in 2021," Mr. Krishna.

IBM and MIT will be working together to conduct broad research into artificial intelligence through a new joint lab announced today. The MIT-IBM Watson AI Lab will focus on four research pillars: developing AI algorithms, using physics to create new hardware for AI computation, applying AI to specific industries, and evaluating how AI will affect society. The idea behind the partnership is to perform research that will be foundational to new artificial intelligence breakthroughs. Though both organizations have independent AI research efforts, IBM and MIT researchers will work together through the lab. As part of the agreement, IBM will contribute $240 million over 10 years to the lab, which will operate in addition to and in partnership with IBM's existing research organizations, including the Media Lab and the Computer Science and Artificial Intelligence Lab (CSAIL).