Big blue heads into the black

The results are at the higher end of analysts' estimates and come despite a slowdown in the IT market as a whole. The figures also defy a strong dollar, which wiped five per cent off revenue growth for the quarter.

Lou Gerstner, chairman and CEO of IBM, claimed the results validate the strategic realignment of the company, which began three years ago.

In a statement, he said: "The marketplace is increasingly driven by services and solutions, not products, and success will require open, heterogeneous platforms."

Gerstner added that IBM's global reach and broad span of market sectors should help the company to weather any economic adversity in the US over the next year.