IBM reported quarterly earnings that beat analysts' expectations on Tuesday, but revenue came in below street expectations.
After the earnings announcement, the company's shares fell 2.4 percent. (Click here for the latest after-hours quote.)
The company posted fourth-quarter earnings excluding items of $6.13 per share, up from $5.39 a share in the year-earlier period.
Analysts had expected IBM to report earnings excluding items of $5.99 a share on $28.25 billion in revenue, according to a consensus estimate from Thomson Reuters.
Revenue decreased to $27.70 billion from $29.30 billion a year ago.
This is the fourth straight quarter that the company's revenue has fallen short of analysts' targets.
"In view of the company's overall full-year results, my senior team and I have recommended that we forgo our personal annual incentive payments for 2013,'' Chief Executive Ginni Rometty said in a statement.