IBM just had its worst day in 115 years of doing business, and the aftershocks are rippling well beyond one company’s quarterly miss.
On July 14, 2026, IBM issued a preliminary earnings warning projecting second-quarter revenue of $17.2 billion, well short of the consensus estimate sitting near $17.85 billion. The company also guided for non-GAAP earnings per share of $2.93 against an expected $3.02. Shares fell roughly 25% on the day, closing around $217.
What actually went wrong
The shortfall traces back to two parts of the business: software and infrastructure.
On the infrastructure side, the rollout of IBM’s z17 mainframe hit delays, and rising chip costs compounded the damage. Infrastructure revenue is now projected to decline in the low-single digits.
