International Business Machines has announced stronger profits and raised its full-year outlook but said it had signed fewer contracts for computer services than had been anticipated during the third quarter of the year.
The seven percent decline in services and outsourcing contracts is a key indicator of future revenue growth.
But IBM pointed out it had won a major services deal with ABNAMRO just after the quarter closed.
IBM stock dropped nearly four percent on Monday as some investors took profits after the shares had hit a historic high just before the results were announced.
However, many analysts said IBM was still a solid investment in the long term.