IBM Plunges Near 40-Year Single-Day Low After Q2 Revenue Misses at $17.2B
IBM reported preliminary second-quarter revenue of $17.2 billion, falling short of analyst expectations, with the CEO describing the results as disappointing. The miss was driven by delayed closures on large deals and sluggish customer spending on AI infrastructure. The stock fell approximately 23%, approaching its worst single-day performance in nearly four decades, and HSBC followed with a downgrade and a lower price target citing valuation concerns.
A 23% single-day drop in a major tech stock signals something beyond a routine earnings miss. Investors holding IBM directly take an immediate hit, but the broader implication is that enterprise AI spending is not converting into revenue as quickly as the market assumed. That slowdown in large-deal closures is a warning sign for other IT services and consulting firms that have priced in aggressive AI adoption timelines.
IBM full Q2 earnings call: confirm exact date with IBM investor relations, expected within weeks of the preliminary release. Next comparable earnings: Accenture quarterly results and Salesforce quarterly results, both in the coming weeks. August CPI report, approximately August 12.
- Business Ticker: IT company IBM generates lower-than-expected revenue – stock declines · FAZ Wirtschaft
- IBM shares plunge 23% on profit warning · Financial Times
- HSBC downgrades IBM stock rating on valuation concerns, cuts price target · Investing.com
- IBM tumbles after CEO rues 'disappointing' preliminary Q2 results, misses estimates · Seeking Alpha
- Oil posts largest one-day gain since 2020 as IBM misses earnings and CPI data looms · Quartz
- IBM sinks after Q2 revenue miss; these ETFs have the biggest exposure · Seeking Alpha
- IBM stock plunged after the company warned its revenue fell short of expectations · Quartz
- IBM stock plunges toward worst day in nearly 40 years after earnings miss · MarketWatch
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