IBM officially reported earnings following a deeply negative profit warning issued just last week.
The company lowered its full-year revenue outlook, though the reduction was not as steep as many analysts and investors had braced for.
Shares rose in after-hours trading as the market responded to the narrower-than-feared cut.
The adjusted forecast reflects ongoing challenges in IBM’s consulting and infrastructure segments.
Revenue from consulting fell amid a tighter spending environment for large business clients.
The hardware division also faced pressure, with weaker demand for mainframes and legacy systems.
However, the company’s software segment showed relative resilience with modest growth.
IBM’s cloud revenue growth also continued, though at a slower pace than previous quarters.
Management emphasized ongoing cost-cutting measures to protect margins in the near term.
The earnings release followed a period of intense scrutiny after IBM’s earlier profit warning shook investor confidence.
