IBM's crucial software and services businesses also enjoyed a strong third quarter, with revenue rising 13% and 8%, respectively. The tech bellwether has shifted its focus toward these high-margin areas in recent years, aiming to open up fresh revenue streams in a market saturated with its server hardware.
Brad Zelnick, an analyst at Macquarie Capital, cited IBM's software business, in particular as a standout during the third quarter. "Growth engines including growth markets, business analytics, smarter planet and cloud all appear on track," he explained, in a note.
IBM's news seemed to weigh on shares of Intel and Juniper Networks (JNPR), which both report after Tuesday's closing bell, in the early going, but both stocks were in positive territory in recent trades.
-- Written by James Rogers in New York.>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org
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