"We feel good about the rest of the year."

How many C.E.O.'s of big American companies can say that during a recession?

I.B.M. chief Samuel Palmisano can—and has. Big Blue has reported a 26 percent increase in first-quarter earnings, vaulting past analysts' forecasts.

The gains were propelled by overseas sales and by I.B.M.'s shift into software and services in recent years under Palmisano.

The results considerably brighten the outlook for global spending on technology, especially following Intel's bullish forecast on Tuesday. Today eBay also reported a 22 percent gain in quarterly earnings, again topping estimates.

For the quarter, I.B.M. earned $2.3 billion from continuing operations, compared with $1.8 billion in the quarter a year ago. Revenue rose 11 percent, to $24.5 billion. Adjusting for gains from the weak dollar against other currencies, revenue rose 4 percent.

"These results reinforce our confidence in I.B.M.'s ability to perform well in a dynamic global economy," Palmisano said.

Sales in Europe, the Middle East, and Africa rose 16 percent, to $8.8 billion; sales in the Asia-Pacific region rose 14 percent, to $5.1 billion.

Total global-services revenue climbed 17 percent, while its software business had a 14 percent gain in revenue.