IBM Plunges 26% on Q2 Miss, Goldman Warns of Software Bear Market as AI Capex Shifts

IBM-25.23%
GS9.13%
According to Wall Street Insights, IBM (IBM-US) issued a surprise Q2 earnings warning on Tuesday, July 14, with shares plummeting 26% intraday—the largest single-day drop on record since 1968. The company reported Q2 revenue of $17.2 billion, missing analyst expectations of $17.9 billion, and non-GAAP EPS of $2.93 against expected $3.02. CEO Arvind Krishna attributed the miss to a "sudden shift" in customer capital spending priorities, with enterprises redirecting budgets toward server and memory infrastructure amid AI-driven supply constraints, delaying major software contracts. Goldman Sachs warned the IBM event will validate a "software bear market scenario," predicting widespread selloffs in the software and services sector.
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