NEW YORK (AP) -- IBM's stock is down more than 5 percent after the company reported disappointing third-quarter revenue and suggested demand in key markets may be slowing.

Shares are down $10.69, or 5.1 percent, to $200.31 in late afternoon trading. The earnings report came out after the market closed on Tuesday.

The Armonk, N.Y., company blamed global economic deterioration and a drop in the euro's value for the 5 percent drop in revenue in the July-September period. It came to $24.7 billion, $700 million less than analysts expected.

Revenue in its region that includes Europe declined 9 percent, more than any other part of the world.

IBM management also raised the specter of slowing demand for its technology-consulting services and business-software products as corporations become more cautious and government agencies face budget cuts.