IBM shares plunge after Q2 miss, tech and crypto hit

IBM shares fell up to 25% after Q2 results missed forecasts, with revenue at $17.2B and EPS at $2.93. Shifting customer spending pressured the tech sector and impacted crypto markets.

IBM's preliminary Q2 results sparked a sharp sell-off, with shares dropping 18% to 25% after reporting $17.2 billion in revenue—well below analyst expectations of $17.86–$17.9 billion. Adjusted earnings per share also missed, coming in at $2.93 versus estimates of $3.01. The company attributed the shortfall to delayed large deals and a sudden shift in customer spending toward servers, storage, and memory, driven by supply concerns and anticipated price hikes. This shift weakened demand for IBM's software and infrastructure businesses, raising concerns about enterprise tech spending and the impact of AI infrastructure investments on traditional software. The sell-off marked IBM's worst trading day since 1987, with ripple effects across the tech sector and risk assets, including crypto. The rapid spread of information and misinformation on social media further amplified volatility, especially in 24/7 markets like crypto. IBM's official Q2 earnings call is set for July 22, when more details and updated guidance are expected.