IBM shares declined on Thursday, reversing a previous 4% gain despite the company reporting third-quarter earnings that beat analyst estimates. The company reported revenue of $17.1 billion and adjusted earnings of $2.95 per share, with its software segment growing by 9%. Additionally, AI-related work accounted for approximately 30% of consulting revenue, leading Jefferies analyst Brent Thill to raise the stock's price target to $280.
IBM CEO Arvind Krishna attributed a 7% stock slide on October 22, 2026, to enterprise client caution regarding AI investment returns despite the company beating Q3 estimates.
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