IBM flags $17.2 billion preliminary Q2 revenue, sending shares down as much as 23% premarket
AI Market Summary
IBM preannounced Q2 revenue ($17.2B) and adjusted EPS below consensus, attributing the shortfall to a mix shift: infrastructure fell 7% as customers pulled forward AI-hardware purchases, delaying software and consulting deal timing. The stock's ~23% premarket drop signals heightened sensitivity to enterprise IT spending cadence and execution risk, despite software growth and continued funding for strategic AI and quantum initiatives.
Impact level
● High
Affected assets
NCSKIBMR2USD/USDT-1.16%
AI Insight · NCSKIBMR2USD/USDTAI Insight
▼ Bearish
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IBM warned on July 14 that preliminary second-quarter revenue would be $17.2 billion, well below Wall Street expectations of about $17.9 billion, while adjusted earnings of $2.93 a share also missed the $3.01 consensus. The shortfall was driven by infrastructure revenue, including mainframes and hardware, which fell 7% year over year, while software rose 5% and consulting was roughly flat. The company said clients pulled forward purchases of AI-related hardware in late June to get ahead of expected price increases, delaying some software and consulting deal closures. The update sent IBM shares down as much as 23% before the opening bell, its worst single-day reaction in years.
