IBM stock slides after hours as revenue comes in light

International Business Machines Inc. shares declined in the extended session Tuesday after the tech giant’s revenue came in light even though adjusted earnings topped Wall Street estimates.

IBM IBM, +0.86%  shares slid 1.3% after hours, following a 0.9% rise to close the regular session at $145.14. In comparison, both the Dow Jones Industrial Average DJIA, +0.26%  and the tech-heavy Nasdaq Composite Index COMP, +0.30%  gained 0.3%, and the S&P 500 index SPX, +0.05%  advanced less than 0.1%.

The company reported first-quarter net income of $1.59 billion, or $1.78 a share, compared with $1.68 billion, or $1.81 a share, in the year-ago period. Adjusted earnings were $2.25 a share.

Revenue declined to $18.18 billion from $19.07 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of $2.22 a share on revenue of $18.47 billion.

Cognitive-solutions revenue and technology services and cloud-platform revenue declined to come in at $11.91 billion, while analysts surveyed by FactSet expected $12.43 billion. Technology services and cloud-platform includes IBM Cloud, formerly known as Bluemix.

Global business services revenue was flat at $4.12 billion, while analysts expected $4.19 billion. Global business services includes consulting for modernizing business design and enterprise and cloud applications.

Systems revenue fell to $1.33 billion, while analysts expected $1.37 billion. The systems business includes operating-systems software and the company’s mainframe business, including IBM’s z14 line of servers.

For the year, IBM reiterated its adjusted earnings outlook of “at least $13.90” a share, while analysts expect $13.91 a share.

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