IBM shares plunge 25% after Q2 results miss Wall Street estimates
What's new: IBM posted adjusted earnings of $2.93 a share on $17.2 billion in revenue, both below FactSet forecasts.
IBM shares fell 25% Tuesday after the company released preliminary second-quarter results that missed analyst expectations, marking the stock's worst day on record. The company reported adjusted earnings of $2.93 a share on revenue of $17.2 billion, below FactSet estimates of $3.01 a share and $17.86 billion in revenue. Chief Executive Arvind Krishna tied the shortfall to weaker software and infrastructure performance as customers redirected late-quarter capital spending toward servers, storage and memory to lock in supply before expected price increases. He also said several large deals did not close on schedule, deepening the earnings miss.