NEW YORK (CNNMoney.com) -- IBM posted second-quarter earnings Monday that beat estimates, but its revenue fell short of forecasts.
The tech giant said its net income for the second quarter rose 13% from last year to $2.61 per share, beating expectations. Net income for the quarter was $3.4 billion, up 9% from last year.
Analysts polled by Thomson Reuters expected earnings to be $2.58 per share.
Sales for the Armonk, N.Y., company rose 2% to $23.7 billion, which missed analysts' forecast of $24.17 billion.
IBM, which is a component of the blue-chip Dow index, is the world's largest IT company. Wall Street looks to Big Blue's earnings as an indicator of how much businesses are spending on technology.
The traditionally insulated tech sector has not been immune to the global recession, but experts have been looking for tech firms' earnings to start improving on rebounding demand from business customers.
But Mark Loughridge, IBM's chief financial officer, protested when an analyst suggested that IBM's results imply that IT demand lagging.
"I wouldn't take this as a pullback in spending," Loughridge said on a conference call following IBM's earnings report. "We saw a lot of strength in sectors like software, which had a very strong third month of the quarter."
Monday's report marked the first time in a year that IBM missed revenue estimates. But the company has fallen short of analysts' revenue forecasts for four out of the last eight quarters.
IBM raised its full-year earnings guidance to $11.25 a share, but that too was below analyst expectations.
The new Ford Focus RS combines outrageous performance with good manners. More
On Friday Janet Yellen reiterated again that the government has to spend more during crises. Both Hillary Clinton and Donald Trump want to boost spending. More
Michigan could become first state to allow self-driving cars to take to the roads without a human driver ready to take control. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
Tesla started building its massive Gigafactory in June 2014. Since then, home prices in the nearby market have risen faster than the national average. More