International Business Machines posted a new 2015 profit target and quarterly revenue that both missed analysts' estimates, as it grapples with dwindling demand for servers and storage products. 

IBM forecast 2015 operating earnings of $15.75 to $16.50 per share, just shy of analysts' average estimate of $16.53, according to Thomson Reuters I/B/E/S.

The company last year withdrew its long-term plan to hit $20 per share in operating earnings for 2015, as it faltered in its move away from hardware to focus on higher-margin businesses such as security software and cloud services.

The company has been divesting underperforming businesses in an attempt to move into the new era of cloud computing, a struggle shared by other established technology leaders.

IBM's total revenue fell nearly 12% to $24.11 billion in the fourth quarter ended December 31. Revenue from hardware fell 39% to $2.41 billion. 

Net income fell to $5.48 billion, or $5.51 per share, from $6.19 billion, or $5.73 per share, a year earlier.

On an adjusted basis, the company earned $5.81 per share.

Analysts on average were expecting a profit of $5.41 per share on revenue of $24.77 billion.