For the second quarter, IBM generated US$25.8 billion in revenue, down 3 percent from the second quarter of 2011. The revenue fell short of estimates by analysts, who, according to Thompson Reuters, expected to see $26.28 billion, or only a 1.5 percent decrease.

Despite the dip in revenue, the company was better able to remain buoyant by other financial measures. Net income was $3.9 billion, up from $3.7 billion in the second quarter of 2011. Earnings rose to $3.34 per share, an 11 percent increase from $3.00 per share in the second quarter of 2011. As a result, the company has raised its EPS estimate for the full year to at least $15.10, from a previously estimated $15.

"IBM's business model enabled our strong profit performance in the current environment," said IBM Chief Financial Officer Mark Loughridge in a conference call with financial analysts. He attributed the results to a number of factors. This quarter's results are being compared to an exceptionally strong performance in the second quarter of 2011, he said. "We had a challenging compare," he said. In addition, global currency fluctuations cost IBM about $1 billion in revenue, he added.

Revenue by geographical region varied greatly. Revenue in the Americas was $11.1 billion, down 1 percent from a year earlier. Revenue from Europe, the Middle East and Africa was $7.9 billion, down 9 percent from a year earlier. The Asia-Pacific region proved to be a bright spot, producing $6.3 billion in revenue, up by 2 percent from a year earlier.

The service arms of IBM experienced a slump in revenue, down by 3 percent from a year earlier. Global Technology Services logged $10 billion, a decrease of 2 percent. And Global Business Services posted $4.7 billion in revenue, a dip of 4 percent from a year earlier.