Quick Read – IBM CEO Arvind Krishna admitted large deals “failed to close” as clients shifted capex to AI hardware, triggering a historic 22% single-day plunge. – MSFT dropped 3% and NOW fell 8% in a multi-stock selling spree, while HSBC slapped IBM stock with a Reduce rating…
d a $191 price target. – Shares of IBM (NYSE:IBM) are down 22% to $225.20 in Tuesday’s early trading, on pace for the stock’s worst single session since 1987. Strategist Mike Zaccardi noted that IBM shares fell 23% in a single session in October 1987, framing today’s move in rare historical company
The catalyst is a preliminary Q2 2026 revenue and profit miss released this morning ahead of the full report on July 22. IBM CEO Arvind Krishna told investors “we faltered” and that “numerous large deals failed to close” as clients shifted spending toward supply-constrained infrastructure. The broader market tells a different story.
Meanwhile, the NASDAQ 100 is up 1.08% after June’s Consumer Price Index report showed consumer prices fell 0.4% month over month, the largest drop since April 2020, with annual inflation easing to 3.5% and core to 2.6%. Today’s software selloff looks sector and IBM specific rather than macro. Preliminary Q2 Miss Sparks the Selloff IBM reported preliminary Q2 2026 revenue of $17.2 billion, up 1%, versus the $17.86 billion consensus.