IBM International Business Machines Corp

By Asa Fitch 

International Business Machines Corp. reported a third consecutive quarter of declining revenue Tuesday, further clouding Chief Executive Ginni Rometty's yearslong quest to revitalize the computing giant.

Under Ms. Rometty, who has been at the helm since 2012, IBM has poured resources into its cloud-computing business and new technologies such as artificial intelligence, aiming to reorient Big Blue in a world where traditional growth engines like equipment sales and services haven't been growing as fast. IBM said its cloud businesses grew 10% in the past 12 months.

For a brief spell last year, it appeared as though IBM had turned a corner, reporting successive quarters of overall revenue growth -- however small.

That changed in the middle of 2018, as Wall Street analysts and investors watched revenue tip back under. It fell again in the first quarter, dropping 4.7% to $18.18 billion. Analysts had expected $18.46 billion, according to Refinitiv.

IBM's software and technology services, which include computing infrastructure and IT support services, drove the decline. IBM had faced a tough comparison to last year's first quarter, when a new generation of industrial-strength mainframe computers helped drive sales.

Net income fell 5.2% to $1.59 billion. Adjusted profit, which excludes some items such as acquisition costs, came to $2.25 a share. Analysts had expected $2.22.

Write to Asa Fitch at asa.fitch@wsj.com

(END) Dow Jones Newswires

April 16, 2019 16:29 ET (20:29 GMT)

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