“We saw a marked slowdown in September in client buying behaviour, and our results also point to the unprecedented pace of change in our industry.”
CEO Ginni Rometty said this in IBM’s Q3 earnings announcement, which revealed tumbling revenue and profits at the company.
The statement is troubling because as a global provider of business software and services, IBM is a bellwether of business spending. And a boom in business spending is central to the bullish outlooks of many economists and market strategists.
IBM reported declines in all markets: Americas revenue fell 2%, Europe/Middle East/Africa revenue fell 2%, and Asia-Pacific revenue dropped 9%. Management said revenues in its so-called “growth markets” fell 6%, with Brazil, Russia, India, and China revenues falling 7%.
Shares of IBM are down by over 6% in premarket trading.