IBM is on track for its biggest share price slump on record after warning that AI is eating into its business.
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For a stock like Palantir (PLTR), the conversation always seems to begin and end with one thing: growth. With the shares down 8.7% over the last year, it’s clear the market is skeptical that the company can maintain its torrid pace. The stock now trades at just 63% of its 52-week high, suggesting a lot of pessimism is already baked in.

IBM stock collapses 25% after the company preannounced its Q2 earnings results.
International Business Machines Corp (NYSE:IBM) shares fell about 25% to $217 on Tuesday after the company released preliminary second quarter 2026 results that came in below Wall Street expectations and warned that an unexpected shift in customer spending weighed on its software and...
Yahoo Finance Executive Editor Brian Sozzi and his Opening Bid panel featuring guests: Globalt Investments senior portfolio manager Thomas Martin, Sevens Report Research founder Tom Essaye, and Yahoo Finance Senior Business Reporter Brooke DiPalma break down IBM's (IBM) worse-than-expected quarterly results and what they signal for the company's future as the stock tumbles nearly 25% in today's session.
IBM shares sank as much as 25% as the company issued a profit warning citing a shift in customer spending from software to AI hardware and memory chips.
Shares of IBM are headed for their worst day since the "Black Monday" market crash of 1987. The stock plunged some 24% in morning trading after the company issued a profit warning. IBM said the performance of its software and infrastructure business fell short of expectations in the second quarter, and the company didn’t react quickly enough to the changing market conditions.
Investing.com -- While IBM’s negative second-quarter preannouncement sent shockwaves through the broader enterprise software sector, Wall Street is identifying a clear silver lining for cybersecurity stocks. According to a new research note from Barclays analyst Saket Kalia, the massive shift in enterprise capital expenditure (capex) that derailed IBM’s software sales is actually acting as a short-term catalyst for firewall vendors, compounded by an increasingly hostile global threat environment
The Dow is caught in a tug-of-war between strong bank earnings and IBM's historic drop. The Dow's top performer was Goldman Sachs, which popped 5.5% after reporting record results. Goldman is the heaviest weighted component in the Dow.
June CPI came in at 3.5% annually, below the 3.8% economists expected, but rising oil prices and an IBM warning capped gains

IBM (IBM) stock is plunging upwards of 20% in Tuesday's pre-market trading after releasing weaker-than-expected preliminary second quarter earnings results. Morning Brief Host Julie Hyman is joined by Yahoo Finance Breaking News Reporter Jake Conley and Trustless Media founder Zack Guzman to help analyze how IBM's stock reaction may relate to the memory chip trade. IBM is scheduled to release its full second quarter figures on Wednesday, July 22.
IBM (NYSE:IBM) released preliminary financial results for the second quarter of 2026, reporting revenue of $17. 2 billion, up 1% from a year earlier but below the company’s expectations as weaker performance in its Infrastructure and Software divisions weighed on results.
IBM struggled over the past three months as customers scrambled to get their hands on components that AI datacenters are gobbling up, its CEO said.
Every record-breaking chip sale and soaring data center budget is quietly starving another corner of the tech economy, and corporate earnings are starting to expose which companies are caught on the wrong side of that divide.
Investing.com -- HSBC downgraded IBM to Reduce from Hold and cut its price target to $191 from $231 in a note on Tuesday, arguing that a basket of IBM's peers offers superior earnings potential for the same investment.
CPI inflation was far below views, lowering Fed rate hike odds. Fed Chairman Kevin Warsh said he'll "get monetary policy right."
IBM just logged its worst single-session collapse in nearly four decades, and the shockwaves are already hitting Microsoft, ServiceNow, and the broader software sector in ways that raise an uncomfortable question about where enterprise spending is actually going.
Investing.com - U.S. stock index futures pared early losses to trade near the flatline on Tuesday as investors shifted their focus from geopolitical tensions in the Middle East to the start of the second-quarter earnings season, led by major Wall Street banks.
IBM stock was heading for its largest same-day plunge in nearly 40 years on Tuesday after the company’s preliminary second-quarter adjusted earnings and revenue missed analysts’ targets. In a letter to shareholders, CEO Arvind Krishna explained that the shortfall was largely driven by the company’s infrastructure business. “What played out was worse than our expectations,” Krishna wrote.
FEATURE The artificial-intelligence trade appeared to be reignited Tuesday as investors digested a slew of bank earnings reports ahead of the consumer-price index inflation report for June. International Business Machines sank 23% after the company’s preliminary second-quarter adjusted earnings and revenue missed analysts’ targets.
Tech stocks faced downward pressure Tuesday as disappointing preliminary results from IBM (NYSE:IBM) rippled across the sector, pulling shares of major software companies lower. Following IBM’s update, investors reacted sharply to the cooling sentiment in the broader software space: Accenture (NYSE:ACN): Fell 8% ServiceNow (NYSE:NOW): Dropped 6% Workday (NASDAQ:WDAY): Declined 5% Salesforce (NYSE:CRM): Slipped 5% The decline is rooted in a fundamental shift in enterprise capital expenditure (cap
Stock Market Today: The Dow Jones index dropped Tuesday ahead of the June CPI inflation report. IBM stock plunged 23% on earnings.
Shares of IBM are sliding before the market open on Tuesday as the company provided preliminary second-quarter results that are below Wall Street's expectations. International Business Machines said that it anticipates a quarterly adjusted profit of $2.93 per share on revenue of $17.2 billion. CEO Arvind Krishna said in a letter to investors that the company's software and infrastructure performance shortfall during the quarter was due to clients shifting their spending toward servers, storage, and memory purchases before anticipated price increases.
Iran fired on ships, Trump answered with missiles and seized the Strait of Hormuz, and Wall Street spent Tuesday sorting out who gets hurt and who benefits. Analysts at KeyBanc, HSBC, and Mizuho made some bold calls you may not see coming.