IBM's crucial software and services businesses also enjoyed a strong third quarter, with revenue rising 13% and 8%, respectively. The tech bellwether has shifted its focus toward these high-margin areas in recent years, aiming to open up fresh revenue streams in a market saturated with its server hardware.
Brad Zelnick, an analyst at Macquarie Capital, cited IBM's software business, in particular as a standout during the third quarter. "Growth engines including growth markets, business analytics, smarter planet and cloud all appear on track," he explained, in a note.
IBM's news seemed to weigh on shares of Intel and Juniper Networks (JNPR - Get Report), which both report after Tuesday's closing bell, in the early going, but both stocks were in positive territory in recent trades.
-- Written by James Rogers in New York.>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: email@example.com