SAN FRANCISCO -
charged past Street expectations for the second quarter on strong sales in its international business and continued momentum in North America -- despite a shaky economy.
Net income for the quarter was up 22.3% to $2.76 billion, or $1.98 a share, from $2.26 billion, or $1.55 a share, a year earlier.
Revenue rose 12.8% to $26.8 billion from $23.77 billion a year ago. Adjusted for currency changes, revenue rose 6%.
Analysts polled by Thomson Reuters had been expecting revenue of $25.92 billion and earnings of $1.82 a share, excluding charges.
Shares of IBM were halted in late trading.
Gross profit margin was 43.2% in the second quarter compared with 41.8% a year ago.
Total global services revenues grew 8% adjusted for currency, while global technology services segment revenue increased at the same pace to $10.1 billion. Global business services segment revenue, which benefited from strength in consulting services, increased 9%, adjusted for currency, to $5.1 billion.
IBM signed services contracts totaling $14.7 billion, at actual rates, up 12%. Adjusted for currency the contracts were valued at $12.2 billion and up 4% from a year ago.
Short-term signings were up 9% to $5.8 billion.
The company ended the second quarter with an estimated services backlog, including strategic outsourcing, business transformation outsourcing, integrated technology services, global business services and maintenance, of $117 billion, adjusting for currency, an increase of approximately $1 billion year-over-year.
IBM reiterated its full-year outlook and its 2010 roadmap for $10 to $11 earnings a share. Analysts are expecting earnings of $8.55 a share on revenue of $107 billion for the current fiscal year.
also report earnings Thursday. IBM's services competitor