IBM's quarterly revenue missed Wall Street's expectations as a weaker euro hurt overseas sales, although firm growth in the company's higher-margin services and software units bolstered profit.
International Business Machines Corp reported its second-quarter revenue rose 2 percent to $23.7 billion. Analysts on average had expected $24.2 billion, according to Thomson Reuters I/B/E/S. The company's shares fell 3 percent after-hours to $125.60 after closing at $129.79.
Net profit, however, slightly exceeded expectations and rose to $3.4 billion, or $2.61 a share, from $3.1 billion, or $2.32 a share, a year earlier. Wall Street had forecast $2.58 a share.
The company also raised its full-year outlook for earnings per share of at least $11.25 from a previous forecast of at least $11.20.
IBM has been shifting away from commoditized hardware products in the past decade, focusing instead of software and services. It is now the world's biggest IT services provider.
(Reporting by Ritsuko Ando; Editing by Richard Chang)