IBM shares fell Wednesday after hours, as the company’s third-quarter revenue came in below analysts’ expectations.
IBM’s quarterly revenue rose +0.3% from the year-ago quarter to $17.6 billion. However, it fell short of analysts' estimates of $17.8 billion.
Revenue increased +2.5%, normalized to exclude the company's Kyndryl managed infrastructure services division, which is set to be spun off Nov. 3.
The company’s sales from its cloud and cognitive software segment rose +2.5% to $5.7 billion. Its global business services revenue including consulting and application management increased +11.6% to $4.4 billion.
However, revenues for global technology services decreased -4.8% to $6.2 billion. Systems, which includes systems hardware and operating systems software, revenue fell -11.9%. Global financing revenues decreased -19.2%.
IBM's adjusted earnings for the quarter came in at $2.52 a share, compared with $2.58 in the year-ago quarter.