IBM shares slide after preliminary Q2 revenue of roughly $17 billion misses estimates despite $12 billion in cumulative AI bookings
AI Market Summary
IBM's preliminary Q2 results missed expectations, with revenue around $17B versus $18B expected and adjusted EPS slightly below consensus, driving a sharp selloff. The weakness was broad across software, flat consulting, and a 7% drop in infrastructure, alongside margin compression. Although cumulative AI bookings exceeded $12B, the update highlights execution risk and uncertainty over how quickly AI momentum can offset legacy business softness.
Impact level
● Medium
Affected assets
NCSKIBMR2USD/USDT-3.98%
AI Insight · NCSKIBMR2USD/USDTAI Insight
▼ Bearish
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IBM reported preliminary second-quarter results showing revenue of roughly $17 billion, up 1% year over year but well below the $18 billion analysts expected. Adjusted earnings per share came in at nearly three dollars, also below the roughly three dollar consensus. Software and infrastructure revenue missed forecasts, consulting was essentially flat, and infrastructure revenue fell 7%. IBM said cumulative AI bookings have surpassed $12 billion, but pointed to large deals that did not close and late-quarter customer purchasing shifts as drivers of the shortfall.
