National shareholder rights firm Hagens Berman is investigating International Business Machines Corporation for potential securities law violations after its CEO previewed disastrous second-quarter 2026 results on July 14, 2026. The news sent IBM shares down 25%, erasing over $68 billion of market capitalization in a single day. The investigation focuses on whether IBM made misleading statements about its IBM Z mainframe family, particularly the z17 model, after having previously reported a 51% surge in IBM Z revenues for the first quarter and assuring investors of 5-plus percent constant currency revenue growth for the full year. Instead, second-quarter total revenue rose only 1% and Infrastructure revenue declined 7%, with CEO Arvind Krishna citing a shortfall in Z performance and associated software, as well as numerous large deals that failed to close. The firm is examining whether the company possessed information earlier that would have made the deal closures unlikely.
International Business MachinesIBM faces investigation for potential securities law violations after CEO previewed disastrous Q2 results, causing a 25% stock drop and $68B market cap loss.