IBM Corp (NYSE:IBM) shares plunged in New York after the computer titan posted its fifth consecutive quarter of declining revenue as an uptick in revenue in cloud-based activity has not been able to counter falls in sales in the hardware and services businesses.
In the third quarter to September 30, group revenue came in at US$18.03 billion compared to analysts' expectations of US$18.22 billion. Meanwhile, net income in the three months, excluding items, was slightly ahead of expectations at US$2.68 per share, compared to Wall Street forecasts of US$2.67.
Revenue from the cloud-based business for the quarter, which includes software multinational Red Hat, which IBM acquired earlier this year, was US$5.28 billion, up 11%, but analysts had pencilled in US$5.43 billion.
The group's Global Technology Services arm, or 'GTS', posted US$6.7 billion in revenue compared with US$6.77 billion Wall Street consensus.
IBM expects adjusted earnings of at least US$12.80 for the year as a whole, while analysts are expecting US$12.80.
Shares lost 6.14% in New York to stand at US$133.32 each.