Analysts polled by FactSet expected earnings per share of $1.81. When the books were opened, the result was $1.91, CNBC reports.
Sales were $15.92 billion, compared with the expected $15.62 billion. This represented a 9 percent increase in sales compared to a year ago.
IBM has faced concerns about how AI will affect software companies, and the stock has fallen 15 percent so far this year.
Question marks have also surrounded the results of Red Hat, the software company purchased by IBM in 2019, which was hit by last year's record-long US government shutdown.
After the report, IBM's stock fell about 6 percent in after-hours trading on the New York Stock Exchange.
