IBM stock fell as much as 5 percent on Tuesday after the company reported mixed earnings for its fiscal third quarter.
Here's how the company performed:
- Earnings: $3.42 per share, excluding certain items, vs. $3.40 per share as expected by analysts, according to Refinitiv.
- Revenue: $18.76 billion, vs. $19.10 billion as expected by analysts, according to Refinitiv.
The company's overall revenue came in 2 percent lower year over year, according to a statement.
Analysts were expecting IBM's revenue to drop for the quarter, which ended on Sept. 30. The company sustained five years of revenue declines before reversing the trend by showing revenue growth for three consecutive quarters.
IBM's biggest business segment, Technology Services and Cloud Platforms, hit $8.3 billion in revenue, which was down 2 percent year over year. Analysts had expected $8.43 billion in revenue from the group, according to FactSet.
The Cognitive Solutions business segment produced $4.1 billion in revenue, down 6 percent and below the $4.3 billion estimate, while Global Business Services delivered revenue of $4.1 billion, up 1 percent and above the $4.06 billion FactSet estimate.
IBM's Systems business had $1.7 billion in revenue, up 1 percent and below the $1.79 billion estimate.