IBM shares plunge to 58‑year low after AI‑driven revenue miss

IBM’s stock recorded its steepest decline in at least 58 years on Tuesday, falling sharply after the company released a second‑quarter revenue preview that missed analysts’ expectations. The preliminary revenue figure of $17.2 billion fell short of the $17.9 billion consensus, a shortfall the company attributed to customers shifting investment toward AI‑focused chips and servers. Sales in IBM’s infrastructure division dropped 7%, and related software firms Workday and ServiceNow each slipped about 6%. CEO Arvind Krishna told investors the situation was “worse than we expected,” acknowledging that the firm failed to adapt quickly and that large contracts were not completed on schedule. The miss raised doubts about IBM’s strategy to grow its software business through acquisitions such as Red Hat, HashiCorp and Confluent, and highlighted broader market concerns about the transition from traditional software to AI‑driven tools.