ARMONK, N.Y. (AP) -- IBM's second-quarter earnings rose 6 percent despite a downturn in revenue amid Europe's economic jitters.
Churning out higher earnings has become routine for IBM Corp., one of the technology industry's bellwethers. Wednesday's report marks the company's 38th consecutive quarter that its earnings have climbed from the previous year.
IBM has been able to boost its earnings even in periods when revenue has been falling by focusing more on sales of software and technology services, two businesses with higher profit margins than the computer equipment that had provided the company's financial backbone through most of its 101-year history.
True to form, software was the only part of IBM's business that didn't register a decline from last year. Software revenue remained level at $6.2 billion.
IBM's weak spot during the second quarter was in the region that includes Europe, where worries about unwieldy government debt have heightened uncertainty about the economy's direction. IBM revenue in Europe, the Middle East and Africa fell by 9 percent from last year.
The turmoil in Europe also hurt IBM's results as currencies there weakened, translating into fewer U.S. dollars.
IBM earned $3.9 billion, or $3.34 per share, for the three months ending in June. That compares with net income of $3.7 billion, or $3 per share, at the same time last year.
If not for accounting charges for past acquisitions and the company's pension, IBM said it would have earned $3.51 per share. On that basis, IBM exceeded the average estimate of $3.43 per share among analysts surveyed by FactSet.
Revenue totaled $25.8 billion for the latest quarter, down 3 percent from $26.7 billion a year ago. The latest quarter's revenue fell about $500 million below analyst forecasts.
Some analysts may have underestimated how much currency fluctuations would affect IBM's revenue.
IBM, which is based in Armonk, N.Y., said currency changes lowered its revenue by about $1 billion. If currency exchange rates had remained the same as last year, the company said its revenue in the latest quarter would have been slightly higher, and flat for the region covering Europe.
In a sign of confidence, IBM raised its adjusted-earnings forecast for the full year to $15.10 a share. That's a dime above management's last guidance in April.
IBM shares gained $3.75, or 2 percent, to $192 in Wednesday's extended trading, after the release of results.