IBM’s shift to higher-profit software helps it cope with tech slowdown
International Business Machines Corp.’s decadelong shift to higher-margin software sales helped it overcome a slowdown in technology spending last quarter and boost its full-year earnings forecast. Excluding some items, profit will increase to at least $15.10 a share this year, up from a previous forecast of $15, IBM said. Earnings were $3.51 in the quarter, topping the $3.43 average estimate, even as sales declined. IBM aims to get half of its profit from software by 2015, a move away from less-profitable hardware and services.