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Red Hat Drives IBM’s Software Growth, Stock Slips on Weak Infrastructure Business Revenue

Red Hat, a provider of open-source software solutions for enterprises, was officially acquired by IBM on July 9, 2019.
Red Hat Drives IBM’s Software Growth, Stock Slips on Weak Infrastructure Business Revenue
A sign marks the entrance to IBM Corporate Headquarters in Armonk, N.Y. Stan Honda/AFP via Getty Images
Panos Mourdoukoutas
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IBM’s software revenue growth accelerated in the third quarter owing to a strong showing in Red Hat’s revenues.
Software revenue came in at $6.5 billion, up 9.6 percent at constant currency, driven by a 14 percent jump in Red Hat revenues, up from 8 percent growth in the second quarter.
Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”