Business Technology

IBM Shares Plunge 25% on Revenue Warning

IBM Shares Plunge 25% on Revenue Warning

CEO Arvind Krishna disclosed that weakness in software and infrastructure caused the revenue shortfall, as corporate customers redirected budgets toward artificial-intelligence hardware.

The warning triggered a broad sell-off in the technology sector, with Microsoft and other software names also declining.

IBM’s stock was on track for an even steeper one-day fall than during the 1987 crash.

The results underscored the disruptive impact of the AI spending super-cycle on legacy IT providers.

IBM Clockready, CC BY-SA 3.0
IBM
American multinational technology corporation
Arvind Krishna
Indian American business executive and CEO of IBM
Artificial intelligence
Field of computer science that develops and studies software enabling machines to exhibit intelligent behavior