IBM shares fell 25% after revenue and earnings pre-announcement
IBM’s preliminary second-quarter numbers were lower than expected, with revenue at $17.2 billion and adjusted EPS of $2.93.
The company’s enterprise customers redirected spending toward hardware in anticipation of price increases and supply constraints.
This shift caused budgets for IBM’s software and consulting to drop sharply, resulting in weaker-than-expected revenue for infrastructure, consulting, and software.
The decline in IBM’s shares was the worst single-day performance since Black Monday in 1987.