IBM turned lower in after-hours trading. The company reported earnings after the close, and while the results were lacklustre, the stock initially rose on the view that they were not as bad as feared because preliminary results had been released earlier. However, selling gradually took over. Analysts noted that the slight downward revision of the full-year revenue growth outlook from above 5 percent to 4 to 5 percent supports the view that weakness in the transaction processing software segment will partially recover in the third or fourth quarter. They also assessed that the company's outlook was far better than market concerns. Additionally, it was pointed out that management expressed confidence in its strategy and business portfolio, and maintained its free cash flow outlook for fiscal 2026.
International Business MachinesEarnings report with slight revenue guidance cut but better-than-feared results and maintained free cash flow outlook.