Archive · 21 Jul 2026
IBM Shares Plunge 26% After Weak Q2 Sales
IBM's shares have dropped a lot recently because the company didn't make as much money as expected in the second quarter.
This happened because customers are spending more on things like servers and chips for AI, which are in short supply.
The stock has fallen 26% in just five days, which is a big drop.
However, over the long term, IBM's shares have done very well, going up 144% since 2020.
The company's CEO said that the weak sales were because customers are preparing for price increases in AI-related hardware.
Despite the recent drop, IBM's long-term performance is still strong.
IBM shares plunged 26.5% in five sessions after weak Q2 sales.
The stock slumped 25% on 14 July, its biggest single-day decline since 1968.
Preliminary Q2 revenue of $17.2 billion missed analysts' expectations of $17.9 billion.
Sales in IBM's Infrastructure division declined 7% during the quarter.
IBM's long-term performance remains strong, with a 144% rally since 2020.
- Who
- International Business Machines Corp (IBM)
- What
- IBM shares plunged 26% in five sessions after weak Q2 sales and a cautious outlook.
- When
- The decline began on 14 July and continued over the past five trading sessions.
- Where
- The sell-off occurred on Wall Street.
- Why
- Investors reacted to IBM's preliminary Q2 revenue missing analysts' expectations and customers shifting spending towards AI infrastructure.
Investor Concerns
Long-Term Optimism
Market Reaction
Investor Concerns
Investors are concerned about IBM's weak Q2 sales and cautious outlook, leading to a significant sell-off.
Long-Term Optimism
Despite the sharp correction, IBM's long-term performance remains strong, with a 144% rally since 2020.
Spending Shifts
Investor Concerns
Customers are shifting spending towards AI infrastructure like servers and chips, impacting IBM's software and mainframe sales.
Long-Term Optimism
The shift in spending reflects the growing importance of AI, which could benefit IBM in the long run.
Market Sentiment
Investor Concerns
The retreat in the AI-led rally on Wall Street has weighed on IBM's stock performance.
Long-Term Optimism
The long-term gains and consistent performance over the past five years indicate resilience and potential for recovery.
- Current Share Price
- $211
- Percentage Drop in Five Sessions
- 26.5%
- Biggest Single-Day Decline
- 25% on 14 July
- Preliminary Q2 Revenue
- $17.2 billion
- Analysts' Expected Revenue
- $17.9 billion
- Infrastructure Division Sales Decline
- 7%
- Long-Term Rally Since 2020
- 144%
- Strongest Annual Return
- 36% in 2025