IBM's Stunning Q2 Warning: How AI Spending and Supply Shifts Exposed Vulnerabilities in Big Blue's Core Businesses

IBM shares tank 26% after initial results disappoint

International Business News: Shares of software and IT services companies plunged Tuesday after International Business Machines (IBM) reported preliminary results that missed anal.

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IBM's Stunning Q2 Warning: How AI Spending and Supply Shifts Exposed Vulnerabilities in Big Blue's Core Businesses

IBM shares plunged more than 20% on Tuesday. The reaction came after the company issued preliminary second-quarter results that fell short of Wall Street forecasts. Revenue reached just $17.2 billion. That figure represented only 1% growth from the prior year. Adjusted earnings per share hit $2.93. Analysts had expected closer to $3.01 or higher. Arvind Krishna, IBM’s chairman and chief executive, didn’t sugarcoat the outcome. In a letter sent t…

Read IBM CEO's letter to investors warning about its poor results: 'This quarter we faltered'

IBM CEO Arvind Krishna warned investors that the company's second-quarter results fell short of expectations.Mandel NGAN / AFP via Getty ImagesIBM CEO Arvind Krishna sent a warning letter to investors about its below-par Q2 results.Customers pulled back from spending on IBM products to prioritize buying memory and chips, he said.Read Krishna's full letter to IBM shareholders below.IBM shares tanked on Tuesday after the tech giant released prelim…

After a Brutal Sell-Off on Weak Preliminary Q2 Results, IBM Stock Is at a Crossroads

IBM shares plunged more than 25% after issuing a weak preliminary Q2 2026 outlook with revenue of $17.2 billion, falling short of expectations and sparking a securities fraud investigation.