Reportedly, International Business Machines Corporation’s (IBM) third-quarter earnings release reported lower revenue than estimates. Adjusted earnings per share of $2.52 per share versus $2.50 per share expected. Revenue of $17.62 billion was reported versus $17.77 billion estimated. Net income declined 33% as the company’s gross margin reduced to 46.4% from 48% in the previous quarter. The global services segment, which includes managed services, outsourcing, and support, contributed $6.15 billion in revenue, a 5% decrease from a year earlier.
The Cloud & Cognitive Software business, including Red Hat, produced $5.69 billion in revenue, up 2.5% and less than the estimates of $5.77 billion. Revenue in IBM’s global consulting unit increased about 12% to $4.43 billion in revenue, beating the $4.29 billion estimates. Systems revenue, including hardware, was $1.11 billion, which was down almost 12% and below the $1.23 billion expectation. IBM expects to spin out the managed infrastructure part of Global Technology Services, under the name Kyndryl, in early November. Excluding, the Kyndryl portion of the business, revenue was up 2.5%.
The results “fell short of our expectations,” IBM CEO Arvind Krishna told analysts on a conference call.
Dow 30 component International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. To learn more about International Business Machines Corp (IBM) and to track its ongoing progress please visit the Vista Partners IBM Coverage Page.
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