NEW YORK (AP) — IBM said Wednesday that its third-quarter net income rose 6 percent, but its revenue fell and missed Wall Street's expectations by more than $1 billion. The company's stock fell in extended trading.
The Armonk, N.Y., computing company earned $4.04 billion, or $3.68 per share, up from $3.82 billion, or $3.33 per share, in the same quarter last year. Excluding one-time charges, the company earned $3.99 per share, above expectations of $3.96.
Revenue dropped 4 percent to $23.7 billion from $24.7 billion. That fell short of the $24.8 billion expected by analysts surveyed by FactSet. Adjusted for the effects of foreign currency exchange rates, the company said revenue fell 2 percent.
IBM is the world's largest technology-services company. Its results provide a gauge of businesses' appetite for technology spending. IBM has grown its earnings each quarter in the past decade, a streak that likely extended through the first quarter of this year.
The company's business has been stable because many of its customers sign long-term contracts that guarantee regular revenue, even when the economy is tough. It also helps that IBM no longer has a direct connection to the personal computer industry, where a sales slump has been hurting the makers of microprocessors and desktop and laptop computers.