IBM reported first-quarter adjusted earnings per share that topped Wall Street expectations, but revenue fell just short of estimates on Monday.
The technology company posted earnings of $2.91 per share, up 9 percent from $2.68 a share in the year-earlier period. Revenue fell to $19.59 billion, down 12 percent.
IBM's software and hardware segment sales dropped 8 and 23 percent from the year before, respectively. In the company's earnings call, Chief Financial Officer Martin Schroeter said a stronger dollar markedly affected sales, as about two-thirds of revenue comes from outside the U.S.
IBM shares were flat in extended trading, erasing a 2 percent jump shortly after results were reported. The stock closed Monday's regular trading session up more than 3 percent.
Read MoreIBM faces these big headwinds: Analyst
Wall Street had expected IBM to deliver quarterly earnings per share of $2.80 on $19.64 billion in revenue, according to a consensus estimate from Thomson Reuters.
The result marked at least the eighth time in the last nine quarters that IBM fell short of analysts' sales expectations, according to Thomson Reuters.
Schroeter called the results "quite a good start to the year." He touted growth in IBM's cloud computing and business analytics despite the currency struggles.
Revenue in the cloud and analytics segments rose 60 and 12 percent year over year, respectively.
"It's kind of interesting that IBM had such a good day and they had, it looks like, a good earnings report in terms of the bottom line," said Dan Morgan, senior vice president and portfolio manager at Synovus Trust, in a CNBC "Closing Bell" interview. Morgan's firm owns IBM stock.
Read MoreIBM turns to social media to fight cybercrime
IBM has struggled with declining revenue over the past three years, as customers gravitate to smaller, more agile cloud-based outfits.
Of the 23 analysts following IBM, only two rate the stock as a "buy" with one analyst considering it a "strong buy."
The majority of analysts have less faith in IBM, as 16 analysts call it a "hold," one rates the stock "underweight" and four rate it as a "sell."
Correction: This story has been updated to reflect that IBM's earnings per share in the first quarter of 2014 were $2.68.