{"slug": "ibm-stock-plummets-more-than-25-on-q2-earnings-warning", "title": "IBM stock plummets more than 25% on Q2 earnings warning", "summary": "IBM stock plunged more than 25% on Tuesday after the company reported Q2 earnings that missed Wall Street estimates, citing a shift in customer spending toward AI servers and memory and away from software and mainframe products. CEO Arvind Krishna said the company underestimated the magnitude of capital expenditure reprioritization amid supply chain constraints. The drop marks IBM's worst single-day decline in decades.", "body_md": "IBM ([IBM](https://finance.yahoo.com/quote/IBM/)) stock collapsed more than 25% on Tuesday, its worst drop in decades, after the company preannounced earnings that fell well below Wall Street's expectations, as customers shifted spending away from software and mainframe products and toward AI servers and memory.\n\nAnalysts had anticipated IBM to report adjusted earnings per share (EPS) of $3.02 on revenue of $17.86 billion, but the company came up well short, posting adjusted EPS of $2.93 and revenue of $17.2 billion.\n\nIn a statement, IBM CEO Arvind Krishna said the company was prepared for a low-single-digit decline in its z17 mainframe business for the quarter, but the results were far worse than projected and are at least partially related to the global memory shortage.\n\nThe shortage is impacting enterprise businesses as well as consumer goods including Apple's ([AAPL](https://finance.yahoo.com/quote/AAPL/)) Mac and iPad, Microsoft's Surface line of laptops and hybrid tablets, and video game consoles from Sony ([SONY](https://finance.yahoo.com/quote/SONY/)), Microsoft ([MSFT](https://finance.yahoo.com/quote/MSFT/)) , and Nintendo ([NTDOY](https://finance.yahoo.com/quote/NTDOY/)).\n\n\"In the last few weeks of June, we saw clients shift their quarterly [capital expenditures] spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases,\" Krishna said.\n\n\"This dynamic impacted client buying patterns. While we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization,\" he added.\n\nIBM stock was previously off just 4.8% since the start of the year heading into Tuesday, but is now off 26%.\n\nThe company's chief competitors aren't faring much better, though. Shares of Oracle ([ORCL](https://finance.yahoo.com/quote/ORCL/)) are off 33% year-to-date, while Microsoft has declined 20%. Accenture ([ACN](https://finance.yahoo.com/quote/ACN/)), meanwhile, is down 50%.\n\nIBM will hold its quarterly earnings call on July 22.\n\n*Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at **@DanielHowley**.*\n\n**Click here for the latest technology news that will impact the stock market****.**\n\n**Read the latest financial and business news from Yahoo Finance**", "url": "https://wpnews.pro/news/ibm-stock-plummets-more-than-25-on-q2-earnings-warning", "canonical_source": "https://ca.finance.yahoo.com/news/ibm-stock-plummets-more-than-25-on-q2-earnings-warning-150605880.html", "published_at": "2026-07-14 15:06:05+00:00", "updated_at": "2026-07-14 15:37:12.392442+00:00", "lang": "en", "topics": ["ai-infrastructure", "ai-products"], "entities": ["IBM", "Arvind Krishna", "Apple", "Microsoft", "Sony", "Nintendo", "Oracle", "Accenture"], "alternates": {"html": "https://wpnews.pro/news/ibm-stock-plummets-more-than-25-on-q2-earnings-warning", "markdown": "https://wpnews.pro/news/ibm-stock-plummets-more-than-25-on-q2-earnings-warning.md", "text": "https://wpnews.pro/news/ibm-stock-plummets-more-than-25-on-q2-earnings-warning.txt", "jsonld": "https://wpnews.pro/news/ibm-stock-plummets-more-than-25-on-q2-earnings-warning.jsonld"}}