IBM misses Q3 earnings estimates
Yahoo Finance's Dan Howley breaks down the numbers to know from IBM's Q3 earnings report.
Video transcript
SEANA SMITH: We want to get over to Dan Howley. IBM is out with its earnings results, and the stock off just around 4%. Dan, what do you have?
DAN HOWLEY: Yeah, it looks like IBM came in short this quarter. They had expected to see revenue of $17.82 billion, but they came in with revenue of $17.62 billion. So, a miss there. It's slightly higher than a year ago quarter where they had $17.6 billion. And then as far as adjusted EPS, they came in at 2.52 a share when they were expected to have 2.53 a share. That is also lower than the prior year quarter of 2.58 a share in Q3 2020.
This all comes as they're expected to spin out their Kyndryl managed infrastructure business. Interestingly, I'm also seeing that their cloud department, their cloud and cognitive software came in at $5.69 billion when it was expected to have $5.78 billion in revenue. Obviously, the cloud being a huge driver for IBM going forward. That's really where they're trying to go, that and the kind of mixed cloud offerings where they have on-premises computing and then in-cloud computing. It's kind of their business to kind of control now. But they are falling well short of the leaders in the market, which are Amazon, Microsoft, and Google.
