Big Blue beat overall expectations for its fourth quarter despite suffering a continued fall in systems sales.

The technology hulk posted final-quarter revenue of $27.2bn (£16.7bn), up one per cent on an annual comparison but down five per cent adjusting for currency. Net profit rose nine per cent to $4.8bn, topping Wall Street forecasts.

Fourth-quarter EMEA revenue fell seven per cent year on year in local currencies.

IBM chief executive Sam Palmisano said it had been a “strong year” and that investment in Smarter Planet solutions, cloud computing and advanced analytics have positioned it for growth.

Of IBM’s three main segments, Systems and Technology suffered the largest revenue declines. Fourth-quarter revenue in that division fell four per cent year on year (down nine per cent in local currencies) despite a 37 per cent hike in System x server sales. System storage sales increased one per cent.

IBM’s largest division – Global Services – saw revenue rise two per cent (down five per cent in local currencies).

Software revenue also grew two per cent (a four per cent drop in local currencies), with Websphere revenue rising 13 per cent.

The much smaller Global Financing segment saw revenue slip six per cent (down 12 per cent in local currencies).

“We concluded a strong year with a solid performance in the fourth quarter in which we again delivered growth in margins, profit and earnings,” said Palmisano.