IBM stock closes down more than 25% after preannounced earnings results - Yahoo Finance
IBM stock plummeted over 25% after the company reported earnings that missed Wall Street expectations. CEO Arvind Krishna attributed the shortfall to customers shifting capital expenditures toward AI servers and memory due to supply chain constraints.
Why it matters
This significant market drop highlights the volatility in the tech sector as companies struggle to balance legacy mainframe business with the massive infrastructure demands of the AI boom.
IBM stock closes down more than 25% after preannounced earnings results Daniel Howley · Technology Editor Updated Tue, July 14, 2026 at 4:46 PM EDT 2 min read IBM -1.69% MSFT +2.67% ORCL +3.29% ACN +1.96% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
IBM ( IBM ) ended trading Tuesday down more than 25%, its worst drop since at least 1968, after the company preannounced earnings that fell well below Wall Street's expectations.
Big Blue attributed the results to customers shifting spending away from software and mainframe products and toward AI servers and memory.
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