IBM (IBM) Shares Drop 23% After Q2 Earnings Miss Expectations

IBM (IBM) shares fell 23% in premarket trading after the company reported adjusted earnings of $2.93 per share on revenue of $17.2 billion for the second quarter, both lower than analysts' estimates of $3.01 per share and $17.86 billion in revenue. CEO Arvind Krishna attributed the shortfall to client spending shifts toward hardware purchases, particularly memory chips, which impacted software and infrastructure sales. The company also faced challenges in closing large deals on time. This news may concern investors as weaker earnings forecasts could signal ongoing difficulties in IBM's business operations.