IBM delivers big earnings in fourth quarter

Net income hits $5.3 billion, or $4.18 a share, on revenue of $29 billion, up 7 percent from a year ago, as IBM shifts to "high-value businesses."

by Larry Dignan

January 18, 2011 2:21 PM PST

IBM today reported better-than-expected fourth-quarter earnings across the board led by software and hardware system sales.

The company reported fourth-quarter net income of $5.3 billion, or $4.18 a share, on revenue of $29 billion, up 7 percent from a year ago. Wall Street was looking for earnings of $4.08 a share on revenue of $28.3 billion for the fourth quarter.

In a statement, IBM CEO Sam Palmisano said the company has shifted to its "high-value businesses." That statement reflects how software is becoming an increasingly large chunk of IBM's revenue.

Read more of "IBM delivers big earnings in fourth quarter, upbeat about 2011" at ZDNet's Between the Lines.

Hooked Up

The iPad-obsessed Christina Milian and her love of tech

Kevin Frazier, co-anchor of OMG Insider, spends time with Christina Milian on the set of "The Voice." Plus, CNET Senior Editor Brian Tong breaks down Google Glass and some of the best accessories for the iPad.

Play Video