In what Senior Vice President and CFO Mark Loughridge called "a tough quarter for us," IBM Wednesday reported its year-over-year revenue declined 4 percent for its third fiscal quarter. Despite profit growth, Wall Street investors drove IBM's stock price down 5 percent in after-hours trading.
IBM put blame on the China market as well as weak hardware sales. The company's Systems and Technology Group saw a 17 percent drop in revenue to $3.2 billion. Half of that drop was attributed to the China market.
It wasn't all bad news for IBM, however. Software and cloud revenue both increased and the company was not affected by the government shutdown, according to Loughridge.