Jim Cramer expressed disappointment with International Business Machines Corporation's performance after its shares fell 25% on July 14th following a preliminary second-quarter earnings report that missed analyst estimates. The company guided for $17.2 billion in revenue and $2.93 in earnings per share, below the expected $17.86 billion and $3.01. Cramer, who has been optimistic about IBM due to its quantum computing potential, called it one of the grave disappointments so far this quarter. The stock is down 23% year-to-date, and the debate now centers on whether the AI wave is crowding out legacy software spending, though bulls point to IBM's $12.5 billion generative AI book of business as of January 2026. Hedge fund interest dipped from 63 funds in the fourth quarter of 2025 to 59 in the first quarter of 2026, with notable exits including Tudor Investment Corp and a 54% stake cut by Millennium Management.
International Business MachinesIBM missed Q2 earnings estimates, causing a 25% stock plunge and disappointing Cramer.