IBM Misses Estimates as Red Hat Fails to Offset Declines
- Third-quarter revenue fell 3.9% in fifth period of decline
- Red Hat included in results for first time since 2018 purchase
Pedestrians walk outside the IBM offices.
Photographer: Daniel Acker/Bloomberg
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International Business Machines Corp. reported third-quarter revenue that missed Wall Street estimates, with the long-awaited revenue infusion from Red Hat failing to compensate for continued declines in other parts of its business.
Total revenue was $18 billion in the three months ended Sept. 30, down 3.9% from a year earlier, the Armonk, New York-based company said in a statement Wednesday. Analysts had forecast $18.2 billion. It marked the fifth consecutive quarter of shrinking sales at IBM, while analysts had been looking for signs that Red Hat, which was incorporated for the first time in these results, would change the narrative.