International Business Machines (IBM) preannounced third-quarter earnings late Wednesday, reporting net income of $2.8 billion, up 20% from the prior year.

IBM also said it earned revenue of $25.3 billion, up 5% from the prior year. Analysts surveyed by Thomson expected revenue of $26.53 billion.

Diluted earnings were $2.05 a share, up from $1.68 a share a year ago. Analysts surveyed by Thomson expected earnings of $2.01 a share. The company said it continues to expect full-year 2008 earnings per share of at least $8.75, or year-over-year growth of 22%.

IBM said it will provide more detailed information about its third quarter results during its regularly scheduled Webcast on Oct. 16.