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IBM shares plunge after profit warning tied to shifting spending
The company warned that customers are shifting spending away from software toward AI hardware and memory chips, driving the steep drop.
IBM shares fell sharply after the company issued a profit warning, with the stock dropping as much as 25% at the lows, marking its biggest decline in its history, according to the Wall Street Journal.
The warning pointed to a shift in how customers are spending, with demand moving from IBM software toward AI hardware and memory chips, which the company said would weigh on performance.
WSJ Markets reported that the company’s guidance change reflected the timing and mix of that spending transition, contributing to the abrupt market reaction.