The IT giant also reported its 22nd consecutive quarter of declining revenue, however.
This earnings season has gotten off to a good start, with 81 percent of companies that have reported beating on the bottom line, while 73 percent have topped sales estimates, according to Thomson Reuters I/B/E/S.
"The good news is the number of companies currently beating estimates, and the margin by which they are doing so, is running above what these same 52 companies have recorded, on average, over the past three years and their top-line revenue growth has accelerated more," said Nick Raich, CEO of The Earnings Scout, in a note.
"The bad news is the rate of 3Q 2017 vs. 3Q 2016 earnings growth has slowed from last quarter, but is still running well above trend," Raich said.
Companies that reported Wednesday before the bell included Abbott Labs, M&T Bank and Supervalu.
Northern Trust also posted quarterly results, beating top and bottom-line estimates. The company's stock rose 3.8 percent and was among the best performers in the S&P 500, which hit intraday and closing records.
"As long as we have a steady economy and reasonable earnings, the path of least resistance remains higher," said Jack Ablin, chief investment officer at BMO Private Bank.
United Continental, eBay and Dow component American Express are set to report after the close Wednesday.
Equities have been on a record-setting run this year as the three major indexes have risen more than 10 percent.
"It's clear what stocks have celebrated this year, and that is the global growth rebound and hopes for US tax cuts, along with a year of still massive QE from the ECB and BoJ. Fed rate hikes, QT and the end of ECB QE I guess will matter more next year," said Peter Boockvar, chief market analyst at The Lindsey Group, in a note to clients.
Hopes of U.S. tax reform have received a boost lately after the House passed a $4.1 trillion budget. The Senate is expected to vote on a budget bill this week.
Treasury Secretary Steven Mnuchin told Politico the stock market will see a "significant" drop if tax reform is not passed.
"There is no question that the rally in the stock market has baked into it reasonably high expectations of us getting tax cuts and tax reform done," Mnuchin said.
Programming Note: For more on IBM, watch CFO Martin Schroeter's interview on "Mad Money" tonight at 6 p.m. ET.
Clarification: This story has been updated to reflect the Dow closed above 23,000 for the first time on Wednesday.