The repurchase, which adds to about $400 million remaining under a previous plan, may lift earnings by 5 cents a share this year, IBM said on Wednesday. The company will earn at least $8.25 a share, up from a previous forecast of at least $8.20.

Chief Executive Officer Samuel Palmisano gave two upbeat forecasts last month as overseas markets and acquisitions fueled growth amid a slowdown in the US. The company, which devoted $18.8 billion to repurchasing shares in 2007, said it expects to spend as much as $12 billion on stock this year.  IBM, which has spent $94 billion buying back 1.4 billion shares since 1995, will use cash from operations for the repurchase. The company generated free cash flow of $12.4 billion last year, a gain of $1.9 billion from a year earlier. 

In May, IBM said it spent $12.5 billion buying back 118.8 million shares, or 8 per cent of its outstanding stock, in an accelerated share repurchase. 

Since 2001, IBM has spent more than $15 billion buying software companies, including the $4.9 billion acquisition last month of Cognos Inc., to add to its most profitable unit. In India, domestic revenue approached $1 billion for the first time in 2007.