International Business Machines (IBM) reported second quarter net income up 8% on the same quarter last year.
The rise was fuelled by strong growth in sales of both its computers and software.
IBM, the world's biggest maker of mainframe computers, made $3.66bn (£2.27bn), compared with $3.39 billion a year earlier.
IBM raised its prediction for full-year earnings for the second quarter running.
Revenue at the 100-year-old company was 12% higher at $26.7bn.
IBM said strong growth was coming from new signings for its services division, which were up by 16% in the quarter - a sign businesses are still spending on technology.
Although the figures beat expectations, IBM's shares initially fell slightly on the results before rising by 2% in after hours trading.
Kim Caughey Forrest, senior analyst at Fort Pitt Capital Group, said: "The margins were very strong and the revenue, especially in the second quarter when you expect softer revenue, makes it look like they did well in the quarter."