IBM continues to grow despite the economic downturn and has reported third quarter results that show a 13% increase in earnings per share on a 8% increase in revenue.
Third-quarter net income was $3,8-billion compared with $3.6 billion in the third quarter of 2010, an increase of 7%. Operating (non-GAAP) net income was $4-billion compared with $3,6-billion in the third quarter of 2010, an increase of 9%.
Total revenues for the third quarter of 2011 of $26,2-billion increased 8% (3% adjusting for currency) from the third quarter of 2010.
“In the third quarter, we drove revenue growth, margin expansion and increased earnings as a result of our innovation-based strategy and continued investment in growth initiatives,” says Samuel J Palmisano, IBM chairman, president and CEO. “Growth markets delivered outstanding revenue performance across software, hardware, and services and contributed to the company’s expanded margins. We also achieved strong results in Smarter Planet, business analytics and cloud.
“Based on this performance, we are raising our 2011 full-year operating earnings per share expectations to at least $13.35.”
Revenues from the company’s growth markets increased 19% (13% adjusting for currency). Revenues in the BRIC countries — Brazil, Russia, India and China — increased 17% (13% adjusting for currency). Growth markets revenue represents 23% of IBM’s total geographic revenue for the third quarter.
Total Global Services revenues increased 8%; revenues from the Software segment were $5,8-billion, an increase of 13%; and revenues from the Systems and Technology segment totaled $4,5-billion, up 4%.