IBM shares plunge 24% after CEO blames unexpected AI spending shift

EarningsIndustry Impact 4
โดย Yahoo Finance·Read original
Summary · why it matters

IBM shares dropped 24% on July 14, marking the steepest one-day decline since Black Monday in 1987, after the company unexpectedly released preliminary second-quarter earnings a week early. CEO Arvind Krishna said the company faltered as customers redirected technology budgets toward AI servers, storage and memory, causing infrastructure revenue to fall 7% while software revenue rose 5%. Preliminary revenue was $17.2 billion, up 1% from a year earlier, but Krishna acknowledged IBM did not anticipate the magnitude of the capex reprioritization. The shift also hurt sales of the flagship z17 mainframe, with several large deals failing to close before the end of the quarter. IBM is scheduled to release final quarterly results on July 22.

Impact on stocks 1

Artificial Intelligence▼ · 1 stocks
International Business Machines
IBM
▼ NegativeDemandrelevance

Customers redirected budgets to AI servers, causing infrastructure revenue to fall 7% and mainframe deals to fail.

Theme Impact 7

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