Net profit at outsourcer EDS rose from £235m in 2006 to £358m last year, a jump of 52%.
In addition, full-year total revenue for 2007 increased by 4% to just over £11bn.
But full-year 2007 total contract value was £9.75bn, down 26% on the prior year.
"EDS enters 2008 a stronger and more competitive company," said CEO Ron Rittenmeyer. "Our financial priorities include driving sustainable operating margins and continuing to enhance our capabilities in higher-margin application services."
The results come after the company offered early retirement to 12,000 staff last year, and include some of the associated costs.