IBM closes down more than 7% after revenue miss

  • After a mixed earnings report for its third quarter, IBM stock closed down over 7 percent on Wednesday.
  • IBM missed revenue estimates of $19.10 billion, reporting $18.76 billion in revenue.
  • The company beat earnings predictions for the quarter by 2 cents per share.
Virginia Rometty
Jodi Gralnick | CNBC
Virginia Rometty

IBM stock closed down 7.63 percent Wednesday following revenue misses disclosed in its third quarter earnings report Tuesday. Its overall revenue was down 2 percent year over year.

The revenue dip did not come as much of a surprise to many analysts, who expected a decline for the quarter. But revenue still dropped below estimates of $19.10 billion to $18.76 billion. IBM beat earnings predictions by 2 cents per share, reporting $3.42 per share, excluding certain items.

Prior to this quarter, IBM had sustained three consecutive quarters of revenue growth, in part due to the introduction of a new mainframe computer, according to analysts. That period followed five straight years of year-over-year revenue declines.

Jordan Novet contributed to this report.