Why did IBM stock fall despite beating Q3 earnings and raising guidance – Investors eye this key segment

IBM stock price today: Shares of International Business Machines Co dipped more than 6% in after-hours trading on Wednesday as investors reacted to modest growth in the company’s software division during the latest quarter, as per a report.

IBM Stock Falls After Modest Software Growth in Q3

IBM reported software revenues of $7.2 billion for the September quarter, matching the FactSet analyst consensus, as per a Market Watch report. Within the software business, hybrid-cloud revenue, including Red Hat, rose 14%, automation revenue increased 24%, data revenue grew 8%, and transaction processing slipped 1%, as per the report.