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Investing.com – IBM (NYSE:IBM) reported on Wednesday third quarter results that missed analysts’ forecasts following weakness in its legacy technology services business.
IBM shares lost 4.55% in after-hours trade following the report.
IBM announced earnings per share of $2.52 on revenue of $17.62 billion. Analysts polled by Investing.com anticipated EPS of $2.53 on revenue of $17.78 billion.
The global technology services business, which includes infrastructure & cloud services and technology support services, weighed on the top line, falling 4.8% to $6.2 billion. Big blue has plans to spin off a large chunk of the technology services business on Nov. 3 into a separate company called Kyndryl.
“With the separation of Kyndryl early next month, IBM takes the next step in our evolution as a platform-centric hybrid cloud and AI company,” said Arvind Krishna, IBM chairman and chief executive officer.
The cloud & cognitive software business, including Red Hat, saw revenue up 2.5% to $5.69 billion, while business services revenue was up 11.6% to $4.4 billion.
The company didn’t release guidance for the fourth quarter.
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