- Technology services & cloud platforms rev. $8.75b vs $8.54b y/y
- Cognitive Solutions rev. $4.24b vs $4.05b y/y
- Systems rev. $1.56b vs $1.97b y/y
- Strategic Imperatives revenue $8.0b
- Global services rev. $4.19b vs $4.21b y/y
But more troubling is that despite the relatively modest drop in revenue, GAAP profit dropped by a materially greater 3.2% to $2.854BN, as the company's adjusted gross margin of 48.0%, once again missed the consensus estimate of 50.1%.
Also adding to the bleak picture, Q3 fresh cash flow of $2.43 billion dropped by 27% Y/Y from $3.29 billion a year ago.
Still, thanks to Wall Street's generosity, EPS estimates which had consistently declined into quarter end, IBM beat consensus non-GAAP EPS of $3.23, reporting $3.29 in bottom line.