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IBM shares fall 18% after earnings warning

IBM cited delays in large deal closings and supply chain shifts as factors behind expected quarter weakness.

Reported · Written up by our desk · Guidance

IBM warned that the company is likely to face weakness in the latest quarter, and the outlook drove a sharp drop in its stock, with shares sinking 18% following the warning.

In explaining the move, WSJ Markets reported that IBM said several large deals did not close on the timelines the company had expected.

The company also pointed to changes in its supply chains, saying those shifts contributed to the quarterly pressure.

The warning underscored how execution and timing in major transactions are influencing IBM's near term earnings expectations, according to WSJ Markets.

Sources