• IBM warned Q2 revenue ~$17.2B and adjusted EPS $2.93, missing estimates. Infrastructure revenue fell ~7%. Shares plunged about 25% to near $217, trading ~18x forward earnings.
  • IBM CEO Arvind Krishna said customer spending shifted rapidly from software to servers, storage and memory, causing fewer software deals and forcing IBM to adjust operations and strategy for AI.
  • IBM pre-announced weaker results, cutting a prior bullish outlook. Analysts say double-digit software revenue growth in 2026/27 is unlikely without major deals or big acquisitions.
  • Securities investigation opened into IBM over alleged misleading statements about z17 mainframe and Z platform performance, citing CEO Arvind Krishna’s claim and reported shortfall in Z performance