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NYSE:IBMIBM (IBM) reported earnings that actually were pretty solid at first glance, unlike some of the other tech giants that have missed the market lately. But IBM earnings details showed signs of concern for investors.

If you’ll remember the previous earnings miss at IBM in April, it was a falloff in IBM’s hardware business that spooked investors and sparked a double-digit decline in the stock.

And this time around, we saw continued softness in hardware as IBM earnings showed its Systems and Technology segment saw revenue down 12% year over year. Management itself called hardware sales “mixed” on the quarter in the earnings call, signaling that there might be a long-term problem.

And let’s not forget that overall revenue was down again, marking the fifth consecutive quarter of top-line declines for the tech giant. Software sales were decent, yes, but hardware is where the big money is.

Furthermore, on the heels of a big earnings miss and ugly guidance at rival Accenture (ACN), it might be overly optimistic to think consulting revenue is going to pick up the slack at IBM in the second half.

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