International Business Machines (IBM) dropped about 9 per cent in extended trading after the company’s weak consulting unit sales disappointed investors, overshadowing its acquisition of software company HashiCorp.

First-quarter sales gained 1 per cent to US$14.5 billion (S$19.75 billion), the Armonk, New York-based company said on April 24 in a statement. IBM also reiterated its previous outlook of US$12 billion in free cash flow for the fiscal year ending in December.