IBM shares faced pressure after Q2 results missed both top and bottom-line expectations, reporting $17.2B in revenue against an estimated $17.86B. Software growth slowed to 5% as customer spending shifted toward hardware like memory chips and servers, while Infrastructure revenue declined by 7%. Despite these quarterly misses, IBM's total returns have outperformed the S&P 500 during Arvind Krishna's tenure as CEO.
The tech giant faces hardware segment pressure after a sharp drop in data center mainframe sales, raising concerns over the company's strategic direction.
Read the full storyIBM reported preliminary Q2 results missing estimates as enterprise customers prioritized hardware and memory chips over software solutions.
IBM reported Q2 revenue of $17.2B, missing estimates as software growth slowed and infrastructure revenues declined by 7%.
In a historic blow to the tech giant, IBM shares recorded their worst single-day performance in history after preliminary Q2 results fell significantly short of market expectations.