IBM shares sink 25% after forecasting $17.2 billion Q2 revenue and $2.93 adjusted EPS
AI Market Summary
IBM's profit and revenue guidance missed expectations as enterprise capex shifted from software/mainframe deals toward AI datacenter infrastructure (servers, storage, memory) and heightened cybersecurity spend. Shares fell 25%, pressuring the Dow and dragging software broadly lower (IGV -4%+, peers down 2%-5%). The update signals near-term demand reallocation risk for legacy software and services budgets despite ongoing AI investment.
Impact level
● High
Affected assets
NCSKIBMR2USD/USDT-24.45%
AI Insight · NCSKIBMR2USD/USDTAI Insight
▼ Bearish
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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%.
