Full-year net income grew 10 percent to $14.8 billion, while full-year revenue jumped 4 percent to $99.9 billion.

"We completed an outstanding year, with record profit and free cash flow, and exceeded the high end of our 2010 earnings per share roadmap objective," said IBM CEO Samuel J. Palmisano in a statement. "We also capped a decade in which our shift to high-value businesses, our global integration of IBM, our investment in research and development of almost $60 billion and our acquisition of 116 companies have helped us to nearly triple our EPS and return more than $100 billion to shareholders."