IBM has reported falling revenue for the third quarter of 2018, with drops in its cognitive solutions, technology services and cloud platforms from a year prior.
The company’s revenue for the quarter was at $18.8 billion, down from $20 billion in Q2, blamed on the impact of the stronger dollar. GAAP earnings per share were $2.94.
Results for the quarter fell short of Wall Street’s expectations of $19.1 billion in revenue and earnings at $3.40 a share.
IBM saw drops in cognitive solutions revenue from 4.4 billion for the corresponding quarter in 2017 to $4.1 billion in Q3 2018; technology services and cloud platforms, from $8.5 billion to $8.3 billion; and global financing, down from $427 million to $388 million.
Patricia Murphy, VP of investor relations at IBM, said: “I’m confident in the strength of our balance sheet. We’ve got plenty of flexibility to continue to invest, while returning value to our shareholders, as evidenced by 23 consecutive years of dividend increases.
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“Our performance through the first three quarters reflects the investments we’ve been making over the last couple of years and actions to reposition the business.”
The company also touted growth in verticals in health, life sciences, and its data science, as well as new services for its Watson AI.
“IBM’s progress and momentum this year in the emerging, high-value segments of the IT industry are driven by our innovative technology, deep industry expertise, and commitment to trust and security,” said Ginni Rometty, IBM CEO.
The company generated net cash from operating activities of $4.2 billion and had a free cash flow of $2.2 billion.
Meanwhile, global business services rose 1 percent to $4.1 billion, while systems revenues were up 1 percent to $1.7 billion.
Cloud revenue over the last 12 months was reported as $19 billion, up 20 percent. This was made up of £8.1 billion from hardware, software, and services and $10.9 billion delivered as a service.
For the full year, the company is now expecting non-GAAP diluted earnings per share of at least $13.80, and GAAP diluted earnings per share of at least $11.60.
Q2 2018 marked IBM’s third consecutive quarter of revenue growth after five years of year-over-year declines.