IBM falls as enterprise-spending constraints choke consulting demand

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IBM falls as enterprise-spending constraints choke consulting demand
Consulting BusinessConsultingCloud Software
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Weakness in smaller discretionary projects affected the consulting segment, but analysts at J.P.Morgan said the backlog could help reaccelerate the business ...

- Shares of International Business Machines fell more than 8% in premarket trading on Thursday, as its consulting business faces pressure from enterprises tightening their budgets to cope with an uncertain economy and high interest rates.

IBM's software business grew 5.5% in the quarter and the company announced a $6.4 billion deal to buy cloud software company HashiCorp, aiming to make the most of an AI-led boom in demand for the data storage capabilities of the cloud.It reported total revenue of $14.46 billion, lower than estimates of $14.55 billion, according to LSEG. Its consulting segment sales were flat.

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