IBM's first quarter earnings and sales were better than expected as the company software unit posted double-digit revenue growth. The company also raised its earnings outlook for 2010.
Big Blue reported first quarter earnings of $2.6 billion, or $1.97 a share, on revenue of $22.9 billion, up 5 percent from a year ago. Wall Street was looking for $1.93 a share on revenue of $22.7 billion, according to Thomson Reuters.
IBM said it was confident that it could grow revenue. The company also projected 2010 earnings of $11.20 a share. Wall Street was looking for $11.12 a share for 2010. IBM added that it expects revenue growth for its hardware, software and services businesses in the second quarter.
On a conference call with analysts, IBM CFO Mark Loughridge said the public sector---think government---remained the company's strongest revenue driver. Loughridge said that IBM was also strong in small and mid-sized businesses. As you look across our geographies, IT spending growth has been uniform, he added.
By the numbers for the first quarter (statement):