IBM quarterly revenue misses on weak mainframe computer business

International Business Machines Corp reported a bigger-than-expected drop in first-quarter revenue on Tuesday, hurt by tapering demand for its mainframe computers and a stronger dollar, sending its shares down about 3 percent.

The technology giant’s revenue at all its main business units except cloud, which has been the centerpiece of its turnaround strategy, missed analysts’ estimates.

IBM’s cloud and cognitive segment, which includes analytics, cybersecurity and artificial intelligence, fell 1.5 percent to $5.04 billion in the quarter, but beat FactSet estimates of $4.18 billion.