IBM earned $3.9 billion dollars over the past three months, well ahead of what analysts had been predicting and its shares rose 2.5%.

It's quarterly results show revenue was down 3% to $25.8 billion compared to the same period last year.

The company employs over 3,000 people in Ireland in Dublin, Cork and Galway.

IBM said the fact that the euro has slipped in relative value against the dollar during the past quarter has cost it a billion dollars in revenue as it generates a substantial proportion of its sales in the EU.

IBM Corp, a bellwether for the IT industry because of its global span and breadth of businesses, now expects full-year earnings per share, excluding items, of at least $15.10, versus at least $15.00 previously.

Unlike other companies, IBM said it had seen a strong June and Chief Financial Officer Mark Loughridge said he was "pretty confident going into the next quarter."

Smaller companies such as Informatica said earlier this month conditions "dramatically" worsened in June with customers scrutinizing deals more closely and possibly signalling a broader pullback in tech spending.

Despite Loughridge's confidence, IBM, like rivals Hewlett-Packard Co and Oracle, continues to grapple with declining corporate budgets as the European crisis tightens spending and emerging market growth decelerates.

The company known as Big Blue has been compensating by shifting its focus from hardware to higher-margin services and software over the past decade but software revenue was flat in the quarter and services was down 2%.

IBM said on Wednesday its revenue fell 3% to $25.8 billion in the quarter, missing average expectations of $26.27 billion. It said it took a $1 billion hit because of a weaker euro and other foreign exchange headwinds that translate into fewer dollars.

IBM generates about 60% of its revenue outside the US. While revenue in the Americas declined by only 1%, the drop in Europe, Middle East and Africa was 9%. The Asia-Pacific region grew a mere 2%.