IBM’s preliminary Q2 results show a 7% year-over-year drop in infrastructure revenue, dragging shares lower despite overall revenue growth.
IBM stock fell over 15% in premarket trading Tuesday after the company reported disappointing preliminary second-quarter earnings. Infrastructure revenue declined 7% year-over-year, offsetting a 1% rise in overall revenue for the period.
The decline in infrastructure revenue contrasts with prior expectations and marks a notable slowdown in a key segment. CEO Arvind Krishna attributed the results to broader market challenges in a letter to investors.
Markets reacted sharply, with IBM shares dropping as much as 23% during the session, contributing to a broader decline in the Dow Jones index ahead of the June CPI report.