IBM missed analyst profit estimates for the first time since 2005 after hardware sales slowed. Shares declined as much as 5.9 percent.

Excluding some items, first-quarter profit was $3 a share, the Armonk, NY, company said yesterday in a statement. That missed the $3.05 predicted by analysts, the first shortfall in eight years. The company also will spend $1 billion cutting jobs and will divest some businesses this year.

IBM, grappling with sluggish demand for hardware and consulting work, has been pushing into faster-growing, more lucrative markets like data analysis and mobile-phone security. For now, though, the newer areas aren’t offsetting the slowdown in its traditional businesses, especially as economic concerns cause customers to put off long-term technology contracts.

“We did not achieve all of our goals in the period,” Chief Executive Officer Ginni Rometty said in the statement. “We did not close a number of software and mainframe transactions that have moved into the second quarter.”

IBM shares fell as low as $195 in extended trading after earnings were announced. The shares had been up 8.1 percent this year and reached a record close of $215.80 in March.

Chief Financial Officer Mark Loughridge said moves will include “workforce rebalancing” this quarter.