IBM Misses Revenue Targets as Consulting and Infrastructure Lag

Despite strong software growth, IBM's third-quarter results fell short due to weak consulting and infrastructure performance.

IBM reported third-quarter revenue of $14.97 billion, missing the $15.07 billion expected by analysts.
The software segment was a bright spot, with revenue increasing nearly 10%, driven by cloud and AI demand.
Consulting revenue remained flat, as businesses cut back on discretionary spending amid economic uncertainty.
The infrastructure segment saw a 7% decline in revenue, attributed to the end of a mainframe product cycle.
IBM's shares dropped by approximately 4-6% in extended trading following the earnings announcement.