IBM Drops Most Since 2021 on Lackluster Results Despite Deal
- Big Blue’s purchase of HashiCorp valued at $6.4 billion
- Company affirms annual free cash flow forecast of $12 billion
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International Business Machines Corp. dropped the most intraday in three years after weak consulting unit sales disappointed investors and overshadowed the company’s acquisition of software firm HashiCorp Inc.
The deal is another move by Chief Executive Officer Arvind Krishna to turn the legacy tech hardware company into one focused on high-growth software and services. Big Blue has made other acquisitions in this area, such as Apptio for $4.6 billion last year, and divested managed infrastructure, weather and health businesses.