The results are seen as foreshadowing slower tech spending worldwide.
IBM Corp. delivered a mixed quarterly performance on Tuesday. Profits slightly exceeded Wall Street's expectations, but revenue fell below.
The results, analysts said, were unlikely to reassure investors concerned about the global outlook for technology spending worldwide.
IBM is the world's largest supplier of information technology -- hardware, software and services -- to corporations and governments. Its results are watched as a gauge of technology spending trends, but with a caveat.
IBM has shifted its business in recent years to software and services. An estimated 40 percent of revenue and 60 percent of profit comes from subscription-like businesses, mainly software license fees and services contracts. That means IBM is more insulated from industry cycles than other technology suppliers.
IBM has also shed hardware businesses with low profit margins, including personal computers and disk drives. The strategy, analysts note, has been a disciplined focus on profit growth rather than enlarging its yearly revenue. For the third quarter, net income was flat at $3.8 billion. The reported net profit included a $160 million charge to take account of a London court ruling against IBM last week.
The company's operating profit of $3.62 a share, up 10 percent from the year-ago quarter, came in just above the average estimate of analysts of $3.61 a share, compiled by Thomson Reuters.
Revenue for the quarter fell 5 percent to $24.7 billion, well below the Wall Street consensus of $25.4 billion. Excluding the effect of currency translation, revenue fell 2 percent in the quarter.