International Business Machines reported its worst quarterly revenue in 14 years as results from newer businesses including cloud and mobile computing failed to offset declines in its traditional businesses.
Revenue of the world's largest technology services company fell 4.6% to $18.68 billion in the first quarter, but beat analysts' average estimate of $18.29 billion.
It was the 16th quarter of revenue decline for IBM in a row.
Under chief executive Ginni Rometty, IBM has been moving toward areas such as cloud-based services, security software and data analytics, while trimming its traditional hardware business by exiting low-margin businesses.
However, revenue in the company's newer businesses is failing to make up for declines in its traditional segments.
Revenue from "strategic imperatives," which includes cloud and mobile computing, data analytics, social and security software, rose about 14% in the first quarter.
But revenue from the services and hardware segments fell 4.3% and 21.8%, respectively, in the quarter.
Excluding items, IBM earned $2.35 per share, beating the average analyst estimate of $2.09.
The company maintained its full-year adjusted earnings guidance of at least $13.50 per share. Analysts on average were expecting $13.55, according to Thomson Reuters.