IBM shares fell 25.2% on Tuesday after the company released preliminary second-quarter 2026 results that missed Wall Street expectations. Revenue rose 1% year over year to $17.2 billion, and adjusted earnings per share grew 4.6% to $2.93, both falling short of consensus estimates of $17.86 billion and $3.02. CEO Arvind Krishna attributed the shortfall to worse-than-expected infrastructure revenue, driven by a decline in mainframe performance and clients shifting capital expenditure toward AI-enabling hardware. The drop was the largest percentage decline for IBM stock since at least 1968, with shares losing more than $73 to close at $217.07. The full official report is scheduled for July 22, and investors anticipate a possible cut to annual guidance.
International Business MachinesPreliminary Q2 results missed revenue and EPS estimates, causing a 25% stock plunge.