IBM 3Q 2011 Earnings: Revenue Up 8%

IBM’s earnings for third quarter 2011 just came across the wire.

Here’s the topline:

• • Diluted EPS:
    • GAAP: $3.19, up 13 percent;
    • Operating (non-GAAP): $3.28, up 15 percent;
  • Revenue: $26.2 billion, up 8 percent, up 3 percent adjusting for currency;
  • Net income:
    • GAAP: $3.8 billion, up 7 percent;
    • Operating (non-GAAP): $4.0 billion, up 9 percent;
  • Pre-tax income:
    • GAAP: $5.0 billion, up 7 percent;
    • Operating (non-GAAP): $5.2 billion, up 10 percent;
  • Gross profit margin:
    • GAAP: 46.5 percent, up 1.2 points;
    • Operating (non-GAAP): 46.8 percent, up 1.5 points;
  • Software revenue up 13 percent, 8 percent adjusting for currency;
  • Services revenue up 8 percent, 2 percent adjusting for currency;
    • Services backlog of $137 billion, up $2.4 billion;
  • Systems and Technology revenue up 4 percent, 1 percent adjusting for currency:
    • Power Systems up 15 percent;
  • Growth markets revenue up 19 percent, 13 percent adjusting for currency;
  • Business analytics revenue up 19 percent year to date;
  • Smarter Planet revenue up 50 percent year to date;
  • Cloud revenue year to date has doubled full-year 2010 revenue;
  • Full-year 2011 Operating (non-GAAP) EPS expectations raised to at least $13.35 from at least $13.25.

IBM today announced third-quarter 2011 diluted earnings of $3.19 per share, compared with diluted earnings of $2.82 per share in the third quarter of 2010, an increase of 13 percent. Operating (non-GAAP) diluted earnings were $3.28 per share, compared with operating diluted earnings of $2.85 per share in the third quarter of 2010, an increase of 15 percent.

Third-quarter net income was $3.8 billion compared with $3.6 billion in the third quarter of 2010, an increase of 7 percent. Operating (non-GAAP) net income was $4.0 billion compared with $3.6 billion in the third quarter of 2010, an increase of 9 percent.

Total revenues for the third quarter of 2011 of $26.2 billion increased 8 percent (3 percent, 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,” said Samuel J. Palmisano, IBM chairman, president and chief executive officer. “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.