IBM reported its fifth consecutive quarter of declining revenues in a third quarter earnings report released Oct. 17.
Here are three notes about the report, which represents the first full quarter since IBM completed its acquisition of cloud software provider Red Hat:
1. IBM posted $18 billion in revenue in the third quarter, a 3.9 percent drop year over year. The last time revenues increased was the second quarter of 2018, when the company reported a 4 percent rise to $20 billion.
2. Earnings also decreased: IBM reported net income of $1.7 billion, a 38 percent year-over-year decline.
3. Revenues did, however, increase in the cloud and cognitive software and global business services segments; the former, which includes Red Hat, reported revenues of $5.3 billion, up more than 6 percent year over year. The global technology services, systems and global financing sectors, meanwhile, reported revenue declines.
"Our results demonstrate that clients see IBM and Red Hat as a powerful combination and they trust us to provide them with the open hybrid cloud technology, innovation and industry expertise to help them shift their mission-critical workloads to the cloud," Ginni Rometty, IBM chair, president and CEO, said in the earnings release.