International Business Machines Corp. has revised its full-year revenue outlook downward following reported declines in demand for its mainframe business, which includes expectations for its closely watched software segment.

In a statement released on Wednesday, the company indicated that revenue for the year is now anticipated to grow by 4% to 5%, a reduction from the previous forecast of above 5%. Chief Financial Officer Jim Kavanaugh stated in an interview that annual sales for the software division are projected to increase by 6% to 8%.

IBM also announced plans to accelerate its cost-saving initiatives while maintaining its expectation of generating an additional $1 billion in free cash flow this year. Kavanaugh explained that this target would be achieved through reductions in third-party technology expenditures, enhancements in supply chain management, and cuts to administrative costs. He further noted that the company's total employee headcount is not expected to change significantly this year.

The company's total revenue saw an approximate 1% increase, reaching $17.2 billion. Earnings per share, excluding certain items, came in at $2.93.

Shares of IBM closed at $205.77 in New York and rose approximately 3% in after-hours trading. As of Wednesday's close, the stock has declined 31% year-to-date, which includes a 25% single-day plunge following the preliminary earnings release.