Tech Industry

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."

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.