IBM’s Q2 FY2026 miss sparks a 7.1% jump in Dell shares on AI infrastructure hopes

IBM reported preliminary Q2 FY2026 results of adjusted EPS of $2.93 on $17.2 billion in revenue, both below expectations, as an AI-driven memory shortage reshaped customer spending priorities. The company said clients shifted more of their budgets toward infrastructure while rising cybersecurity spending pressured its own performance. The read-through prompted a reassessment of the AI hardware supply chain, helping push Dell shares up 7.1% in a single session. Dell posted Q1 FY2027 revenue of $43.8 billion (+87.5% YoY), including $16.1 billion in AI server revenue (+757.2% YoY), with $24.4 billion in AI orders and an AI backlog of $51.3 billion.