IBM's cloud revenue grew by more than 60%, while IBM subsidiary Red Hat’s revenue increased by 17% for Q3 2020. IBM overall announced revenue of $17.6b for Q3 2020 with a YoY decrease of 2.6%, as well as a net income of $1.7b, similar to the same period last year.
- On Oct. 8, the company announced that it would spin-off its managed infrastructures unit as a separate company to focus on its cloud platform led by Red Hat and in growing markets like AI and hybrid cloud. IBM acquired Red Hat in a $34b deal last year.
- The company’s Global Technology Division accounts for the largest part of its revenue. The division generated revenue of $6.5b, down 4% YoY.
- IBM’s share prices are down 12% since the beginning of the year, while the S&P 500 index is up 6% for the same period.
A version of this story first appeared in Inside Business.