IBM Stock Is Having the Worst Day in Its History

Published July 14, 2026 · Category: Finance

Overview

Shares of International Business Machines (NYSE:IBM) fell by as much as 25% today after management issued a stark warning about upcoming second-quarter earnings. IBM’s preliminary, lower-than-expected earnings showed a shortfall in the performance of its software and infrastructure division.

Management attributed the earnings shortfall to clients shifting their spending away from IBM products and instead dedicating capital expenditures to servers and storage ahead of expected price increases.

Details

“This dynamic impacted client buying patterns,” CEO Arvind Krishna wrote in a letter to investors posted on IBM’s website. “While we anticipated some supply chain-related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization.”

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Source

Originally published at www.fool.com.

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