IBM beat estimates with its fourth-quarter results, but its shares fell in after-hours trading as it posted its 19th drop in revenues in a row.
IBM reported overall fourth-quarter revenue of $21.8bn (£17.7bn), down one per cent year-on-year. However, revenue for cloud services jumped 33 per cent to $4.2bn.
The computing giant's diluted earnings per share came in at $4.73, up three per cent year-on-year, beating Wall Street estimates.
Net income grew one per cent to $4.5bn.
What IBM said
Martin Schroeter, IBM senior vice present said: "In 2016, we again made substantial capital investments, increased our R&D spending and acquired 15 companies - a total of more than $15bn across these elements.
"The acquisitions further strengthened our capabilities in analytics, security, cognitive and cloud, while expanding our level of industry expertise with additions such as Truven Health Analytic and Promontory Financial Group."