IBM Sinks 23% After $17.2 Billion Q2 Miss as Weak Z Mainframes Rattle Tech
Updated
Updated · Fox Business · Jul 14
IBM Sinks 23% After $17.2 Billion Q2 Miss as Weak Z Mainframes Rattle Tech
3 articles · Updated · Fox Business · Jul 14
Summary
IBM shares fell more than 23% at Tuesday's open after second-quarter results missed forecasts, putting the company on track for its worst day in decades.
Adjusted earnings came in at $2.93 a share on $17.2 billion in revenue, below Wall Street estimates of $3.01 and $17.86 billion, with CEO Arvind Krishna blaming a shortfall in Z mainframe systems and related software.
Krishna said clients shifted late-June capital spending toward servers, storage and memory to lock in supply-constrained hardware before expected price increases, hurting IBM's software and infrastructure sales.
IBM's slide spilled into the broader tech sector, with ServiceNow, Salesforce, Microsoft, Arm, Oracle and Apple trading lower as investors questioned near-term returns from AI spending.