IBM says its net income and revenue were stronger than expected in the fourth quarter amid a pickup in services signings, a key part of IBM's revenue stream and an area of concern for some analysts.

Net income rose 9 percent to $5.26 billion, or $4.24 per share, topping analysts' projections for $4.08 per share. In the year-ago period, IBM earned $4.81 billion, or $3.65 per share.

Revenue rose 6 percent to $29.02 billion. Analysts expected $28.18 billion.

Many analysts have been worried about a drop in IBM's outsourcing business in recent quarters as rivals gained ground. In the latest period, IBM's signings of new outsourcing contracts rose 24 percent. The company's total backlog of services deals was $142 billion.

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