IBM has laughed all the way to the banks it probably helps run. In its Q2 2011 earnings report, it has announced a growth in all of its key business.
Net income reached $3.7 billion, up from $3.4 billion the same period last year, or an increase of eight percent. Total revenues climbed 12 percent, or five percent adjusting for currency, to $26.7 billion.
As a result, IBM has raised its expectations for operating non-GAAP diluted earnings per share to $13.25 from at least $13.15, it says.
IBM's Palmisano says its forward planning has landed it the sweet spot it sits in for the quarter, putting growth down to long-term strategic investments and company growth initiatives.
Meanwhile, CFO Mark Loughridge said, according to the Wall Street Journal, emerging markets have enjoyed very strong demand.
IBM managed significant growth in 40 emerging markets where it invests, beating developed nation growth by 10 percent. BRIC country revenues increased 27 percent overall, or 21 percent adjusting for currency. Growth markets made up 22 percent of the total geographic revenue for Q2.
Americas' Q2 revenues hit $11.2 billion, or up 10 percent from2010. EMEA brought in the dough, too - with revenues at $8.6 billion, or an increase of 16 percent from the same time last year. Asia Pacific was up 14 percent to $6.2 billion.
OEM revenues were flat at $674 million compared to the same period in 2010.
Software was a big winner, with total revenues soaring 17 percent to $6.2 billion. Middleware stuff like Lotus and Tivoli managed $3.9 billion, or a 21 percent boost. Operating systems revenues were $630 million, another increase, at 16 percent.
Hardware revenues totaled $4.7 billion for the quarter, or an increase of 17 percent. Systems revenue was up 20 percent, while System z mainframe products enjoyed an increase of 61 percent compared to Q2 2010. Power systems increased 12 percent, System x increased 15 percent and system storage increased 10 percent.
IBM's huge services business was leader of the pack, increasing 10 percent, while Global Technology Services revenues increased 11 percent to $10.2 billion. Global Business Services were up 9 percent to $4.9 billion. The services backlog as of 30 June was $144 billion, or an increase of $15 billion year on year for actual rates.