IBM shares slide 30% after early Q2 2026 warning ahead of July 22 results

AI Market Summary
IBM issued an early Q2 2026 earnings warning citing weaker-than-expected revenue and adjusted EPS, driven by a 7% decline in Infrastructure revenue and delayed closure of large deals amid client capex reprioritization and cybersecurity-related distractions. Management acknowledged execution missteps, triggering a sharp one-day selloff and leaving the stock materially down year-to-date. With results imminent, investors will focus on software growth and remediation plans.
Impact level
● Medium
Affected assets
NCSKIBMR2USD/USDT-1.34%
AI Insight · NCSKIBMR2USD/USDTAI Insight
▼ Bearish
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IBM issued a preliminary warning for the second quarter of 2026 on July 14, flagging revenue of $17.2 billion versus expectations of $17.86 billion and adjusted EPS of $2.93 versus $3.02. The company cited a 7% drop in Infrastructure revenue and several large deals that did not close on the expected timelines, while CEO Arvind Krishna acknowledged an execution miss. The update sent IBM shares down 25% on the day and left the stock down 28% year-to-date ahead of the July 22 earnings release.