IBM's quarterly results are in line with analyst expections with revenues up seven per cent to $24.1 billion (£11.8bn) and profits up six per cent to $2.4bn (£1.2bn).

Global business services sales rose 16 per cent year-on-year, and earnings from technology services jumped 13 per cent. Together these figures represent the company's highest global services revenue growth in four years.

Big Blue also reported earnings of $1.68 (£0.82) per share, up 16 percent on the $1.45 (£0.71) 2006 value.

"Our outstanding services results this quarter enabled us to stay on track toward our objective of accelerated earnings per share growth through 2010, while we work through a transition in our hardware business," said IBM chief executive Sam Palmisano.