- 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
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Key facts: IBM Q2 miss; CEO cites shift to servers; analysts skeptical
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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 C