IBM Stock: Analysts Cut Targets After Company's Surprise Profit Warning

IBM misses Q2 estimates, lowers full-year revenue growth outlook as clients shift spending to AI

IBM missed Q2 ($17.2B vs $17.86B) and cut guidance to 4-5% as clients shift budgets from legacy infra to AI and cloud. The slowdown signals AI investments aren't offsetting legacy decline fast enough, raising questions on valuation amid sub-5% growth.