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IBM: A late-quarter deal slump and client spending shifts leave Q2 outlook short
AP News • • business
Key Points:
- IBM's shares fell 23% in pre-market trading following preliminary second-quarter results that missed Wall Street expectations, with adjusted earnings of $2.93 per share on $17.2 billion in revenue compared to analysts' forecasts of $3.01 per share on $17.86 billion.
- CEO Arvind Krishna attributed the revenue shortfall to clients shifting spending towards servers, storage, and memory ahead of expected price increases, impacting software and infrastructure sales.
- Krishna also cited cybersecurity concerns as a distraction and acknowledged that the company did not adapt quickly enough, leading to delayed closures of several large deals that contributed to the earnings miss.
