{"id":11206,"date":"2026-07-15T23:00:23","date_gmt":"2026-07-15T23:00:23","guid":{"rendered":"https:\/\/stock999.top\/?p=11206"},"modified":"2026-07-15T23:00:23","modified_gmt":"2026-07-15T23:00:23","slug":"ibm-shares-plunge-25-after-ceo-admits-company-fell-behind","status":"publish","type":"post","link":"https:\/\/stock999.top\/?p=11206","title":{"rendered":"IBM shares plunge 25% after CEO admits company fell behind"},"content":{"rendered":"

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IBM shares tumbled Tuesday as CEO Arvind Krishna acknowledged in an unusual letter to investors that the company had failed to adapt quickly enough, a blunt admission that followed a surprise earnings miss and sent the stock toward its worst drop in decades.\u00a0<\/p>\n

Fortune talked to several analysts about the resulting 25% stock crash, the worst single-day decline in a company history dating back 115 years, but perhaps none was as damning as Krishna\u2019s own words.\u00a0<\/p>\n

\u201cThese conditions [in markets] require our teams to execute perfectly, and this quarter we faltered,\u201d he wrote. \u201cWe did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected.\u201d<\/p>\n

Krishna pointed to weakness in its software and infrastructure businesses driven by a shift in client activity. The CEO attributed the shortfall in part to a late-quarter change in client behavior, with several large transactions slipping into future quarters.\u00a0<\/p>\n

Holger Mueller, VP and principal analyst at Constellation Research, said enterprises are diverting capital expenditure to \u201cother platforms\u201d with mainframe upgrades and purchases, IBM\u2019s typical bread and butter, getting delayed. \u201cThat is rare, as it is critical infrastructure,\u201d Mueller added, but it definitely \u201cshows the AI pull\u201d in this market.\u00a0<\/p>\n

The delay has broader implications for IBM\u2019s business, where hardware sales often drive software revenue.\u00a0<\/p>\n

\u201cThe impact on IBM is double,\u201d Mueller said. \u201cOn one side, it hits hardware and infrastructure, but it also affects software, as mainframe sales typically trigger direct software revenue.\u201d<\/p>\n

That dynamic reflects a wider reprioritization across enterprise IT spending.\u00a0<\/p>\n

Shay Boloor, chief market strategist at Futurum, said the delays reflect both shifting customer priorities and IBM\u2019s own execution challenges, as companies redirected spending toward servers, storage, and memory ahead of expected price increases.<\/p>\n

\u201cCompanies are prioritizing scarce hardware and delaying projects they believe can wait,\u201d Boloor said. \u201cThat pressure is hitting consulting, transformation projects, and legacy infrastructure the hardest.\u201d<\/p>\n

IBM is exposed on both sides of that shift, he added, with hybrid cloud positioned to benefit from AI adoption while mainframes and project-based services face more near-term pressure.<\/p>\n

Patrick Moorhead, CEO and chief analyst at Moor Insights & Strategy, said enterprises are being squeezed by rising AI-related costs.<\/p>\n

\u201cIT budgets are growing but price increases are growing more quickly than budgets,\u201d said Moorhead. \u201cTherefore other expenses need to be reduced to pay for it.\u201d<\/p>\n

Since taking over IBM as CEO in 2020, Krishna has worked to reposition IBM around \u201cAI and hybrid cloud\u201d aiming to modernize the company and compete in a rapidly evolving market.<\/p>\n

\u201cThe good news for IBM is that their technology is strategic and can\u2019t be held off for long periods of time and will bounce back,\u201d Moorhead said.<\/p>\n

IBM declined to comment beyond its statement and is scheduled to report full results next Wednesday.<\/p>\n

#IBM #shares #plunge #CEO #admits #company #fell<\/p>\n","protected":false},"excerpt":{"rendered":"

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