IBM misses third-quarter revenue estimates as consulting drags; shares fall


FILE PHOTO: IBM logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -International Business Machines missed analysts' estimates for third-quarter revenue on Wednesday, hurt by weakness in its consulting segment as businesses cut back on discretionary expenses, coupled with declines in the infrastructure business.

IBM's shares fell about 4% in extended trading after rising more than 40% this year, as investors bet on the company's potential to benefit from generative AI through its software and consulting services.

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