Software & Services Gives IBM a Q3 Boost

Last week, IBM delivered a strong third quarter, and the success can be largely attributed to the company’s gradual shift toward software and services from hardware.

The better-than-expected profit and revenue growth can be summed up thus: $3.1 billion third quarter net income, or $2.40 per share. These numbers are down from a year ago, but Wall Street had projected earnings of $2.38 a share for this year. This ups IBM’s earnings for the year, as they are now expected to close 2009 at $9.85 a share.

Company CFO Mark Loughridge says they gained market share in both software and hardware, but their hardware growth is not doing as well as in previous years, with their mainframe server revenue down 26% from a year ago. Global business services numbers were also down from last year, but still represent a relative success with $4.34 billion in revenue. And though Loughridge was not forthcoming with details, he expressed confidence in corporate demand stabilizing in the next year, and IBM’s future (multiple) opportunities.