IBM shares fall sharply after the company issues a profit warning and reports weak preliminary second-quarter performance. Multiple reports describe a steep single-day decline, with IBM stock dropping by about a quarter (roughly 23% to 25%) as investors react to the outlook. The selloff also pulls other software and technology stocks, with coverage noting pressure across the sector.
IBM attributes the weaker outlook to shifts in how corporate customers spend, saying spending patterns have changed and that customers’ budgets have been less supportive than expected. For the quarter ending in June, IBM reports revenue of about $17.2 billion, up only around 1% year over year, indicating limited growth. Several outlets link the market reaction to concerns that IBM may be missing out on increased technology spending associated with artificial intelligence, as customers adjust priorities.
Overall, the reporting converges on a combination of an earnings/profit warning, disappointing preliminary results, and investor concern about IBM’s ability to benefit from changing corporate spending—leading to one of the most severe declines in the company’s trading history.
