IBM revenue falls in Q3 results but still beats expectations

International Business Machines Corporation beat on third quarter earnings posted on Monday evening, before initially rising in the stock market before an eventual fall in after-hours.

The enterprise firm reported adjusted earnings of $3.29 per share on revenue of $19.23bn, which was better than analysts' estimates of $3.23 for $19bn.

The strong performance was based on strong profits from cloud services, artificial intelligence, analytics and security.

IBM has alos made a variety of acquisitions recently to bolster its results for the quarter.

"Our ability to apply deep expertise and breakthrough technology, led by Watson and the IBM Cloud, to massive amounts of data is enabling us to build new markets and transform industries," CEO Ginni Rometty said in a statement.

Chief financial officer Martin Schroeter told CNBC that the company's investments are likely to continue.

"We're certainly investing quite heavily and we'll continue to do that. We're getting good returns on the investments we've made," Schroeter said.

The company also said that it expects its full year guidance to remain strong and continues to forecast adjusted earnings of at least $13.50 per share for 2016.

IBM shares have gained 12% so far this year.