Read IBM CEO's letter to investors warning about its poor results: 'This quarter we faltered'
IBM CEO Arvind Krishna admitted the company faltered in Q2, reporting revenue that missed analyst expectations. The shortfall was attributed to clients shifting spending toward memory and chips due to supply constraints and expected price hikes.
Why it matters
The results highlight how broader hardware supply chain issues are impacting enterprise software and infrastructure spending.
IBM CEO Arvind Krishna warned investors that the company's second-quarter results fell short of expectations. Mandel NGAN / AFP via Getty Images IBM CEO Arvind Krishna sent a warning letter to investors about its below-par Q2 results. Customers pulled back from spending on IBM products to prioritize buying memory and chips, he said. Read Krishna's full letter to IBM shareholders below. IBM shares tanked on Tuesday after the tech giant released preliminary second-quarter results that fell short of Wall Street's expectations. The company reported revenue of $17.2 billion, up just 1% and below analyst forecasts, with infrastructure revenue down 7%. In a letter to investors on Tuesday, CEO Arvind Krishna said the company "faltered," blaming large deals that failed to close and clients redirecting spending toward servers, storage, and memory amid expected price increases driven by the global memory shortage.
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