International Business MachinesIBM preannounced Q2 results far below expectations due to customers shifting budgets to AI infrastructure, causing a 25%+ stock drop.
IBM stunned investors after preannouncing second-quarter results that fell far short of expectations, sending shares down more than 25% and wiping out an estimated $70 billion in market value — a 58-year record loss for the company. CEO Arvind Krishna said customers shifted quarterly technology budgets toward servers, storage, and memory purchases to support AI infrastructure, acknowledging that the company did not adapt and move quickly enough. The selloff highlights a broader shift across corporate America, where businesses are reallocating funds from legacy systems to AI infrastructure and software, pressuring other enterprise technology names such as Salesforce, Adobe, ServiceNow, and Workday.
International Business MachinesIBM preannounced Q2 results far below expectations due to customers shifting budgets to AI infrastructure, causing a 25%+ stock drop.
Adobe Systems IncorporatedArticle says businesses reallocating funds from legacy systems to AI infrastructure pressures enterprise tech names like Adobe.
Salesforce.com IncArticle says businesses reallocating funds from legacy systems to AI infrastructure pressures enterprise tech names like Salesforce.
ServiceNow IncArticle says businesses reallocating funds from legacy systems to AI infrastructure pressures enterprise tech names like ServiceNow.
Workday IncArticle says businesses reallocating funds from legacy systems to AI infrastructure pressures enterprise tech names like Workday.