IBM shares sink 25% after forecasting $17.2 billion Q2 revenue and $2.93 adjusted EPS
IBM warned that second-quarter revenue will be $17.2 billion, below the $17.86 billion consensus, and forecast adjusted EPS of $2.93 versus $3.02 expected. The company said customers shifted quarterly capital spending toward AI-related servers, storage and memory, leaving some mainframe and software deals unfinished. IBM shares plunged 25% in a single session, weighing on the Dow, while the IGV software ETF fell more than 4% and peers including Microsoft slid 2% to 5%.