IBM reported financial results that exceeded Wall Street expectations, as the technology company continues to thrive despite the shaky global economy.
The New York company, which employs about 10,000 people at its campus in Research Triangle Park, reported a third-quarter profit of $2.82 a share. Revenue rose 3 percent from a year ago to $24.3 billion.
IBM also raised its earnings per share projection for the year to at least $11.40, up from $11.25.
Still, new service contracts fell 7 percent during the third quarter to $11 billion, the third straight quarterly drop. That suggests the recovery in tech spending may be losing steam, Bloomberg News reported.
IBM shares have been hitting record highs recently and may be due for a pullback. Investors are betting that CEO Sam Palmisano's efforts to remake the company by focusing more on software and services and less on hardware are paying off.
The shares rose $1.77 today to $142.83, and are up 17 percent in the past year.