IBM Shares Plunge 25 Percent as Enterprise Customers Shift Spending to AI

IBM shares closed down 25.2 percent on Tuesday, its largest single-day drop in 115 years and a steeper decline than the October 1987 Black Monday crash, erasing roughly $67-70 billion in market value 123. CEO Arvind Krishna told investors in a letter that clients shifted quarterly capital spending toward servers, storage and memory in late June to secure supply-constrained infrastructure ahead of expected price increases, and that "numerous large deals failed to close on the timelines we expected" 13. IBM cited weakness concentrated in its mainframe and Transaction Processing software stack, and separately noted clients were distracted by cybersecurity concerns following Anthropic's Mythos model, which it said stalled some deals 23. IBM now expects second-quarter revenue of $17.2 billion, up 1 percent and below the $17.86 billion analyst estimate, with adjusted EPS of $2.93 versus a $3.02 estimate, and it reports full results on July 22 13.