International Business Machines Corp has reported lower second-quarter net income and revenue but the results still topped Wall Street expectations.
The company earned $US2.5 billion ($A3.29 billion), or $US2.61 a share, in the April-June quarter, down from $US3.45 billion, or $US3.50 a share, a year earlier.
Earnings, adjusted for costs related to mergers and acquisitions and non-recurring costs, came to $US2.95 per share in the latest quarter.
The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $US2.89 per share.
The technology and consulting company on Monday posted revenue of $US20.24 billion in the period, which also beat Street forecasts.
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Six analysts surveyed by Zacks expected $US20.08 billion. A year ago, its revenue was $US20.81 billion.
Once the dominant PC-maker known as "Big Blue", IBM is confronting a sales slump as it struggles to adapt to changes in the way businesses buy software and other commercial technology.
Chief executive Ginni Rometty has undertaken a plan to revamp its business to shift away from hardware and focus on business analytics, cloud computing, mobile services and security.
IBM shares rose 14 US cents to $US160 in after-hours trading.
