IBM’s revenue falls short of estimate at $17.2 billion
IBM’s preliminary update showed second quarter revenue of $17.2 billion, roughly $660 million short of the $17.9 billion estimate.
The company’s adjusted earnings of $2.93 per share also missed the $3.03 consensus.
The revenue miss was due to customers redirecting quarterly capital spending toward servers, storage, and memory to lock down supply before expected price increases.
IBM underestimated the size of that shift, then failed to adjust quickly enough as large deals slipped past quarter-end.