International Business Machines Corp. (NYSE:IBM) stock plunged Tuesday after the company released preliminary second-quarter results that missed Wall Street expectations.
IBM expects second-quarter revenue of $17.2 billion, below the Wall Street consensus estimate of $17.86 billion. The company projects operating non-GAAP earnings per share of $2.93, missing the analyst consensus estimate of $3.02.
Customer Spending Shifts Disrupt Infrastructure Revenues
IBM Chairman and CEO Arvind Krishna stated that enterprise customers redirected capital spending late in the quarter toward servers, storage, and memory products to secure supply ahead of anticipated price increases.
Infrastructure revenue declined 7%, while software revenue increased 5% and consulting revenue remained flat. Krishna added that rapidly evolving cybersecurity concerns disrupted customer decisions, stating IBM’s teams “did not adapt and move quickly enough” to changing market conditions.
The lowered outlook from IBM impacted broader technology and IT consulting equities during Tuesday’s trading.
Technology Peer Market Movement
| Company | Pre-Market Price | Pre-Market Move |
| ServiceNow Inc (NYSE:NOW) | $102.69 | -7.70% |
| Cognizant Technology Solutions Corp (NASDAQ:CTSH) | $40.80 | -7.61% |
| Accenture Plc (NYSE:ACN) | $128.00 | -7.59% |
| Infosys Limited (NYSE:INFY) | $10.73 | -6.62% |
| Salesforce Inc (NYSE:CRM) | $161.00 | -5.97% |
| SAP SE (NYSE:SAP) | $151.29 | -5.43% |
| Wipro Ltd (NYSE:WIT) | $1.84 | -3.16% |
| Microsoft Corp (NASDAQ:MSFT) | $379.88 | -2.84% |
| Oracle Corp (NYSE:ORCL) | $130.66 | -0.67% |
IBM Price Action: IBM shares were down 23.98% at $220.63 at the time of publication on Tuesday, according to Benzinga Pro data.
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