IBM

IBM

Market cap $200B

IBM heads into Q2 earnings with AI and cloud momentum, but premium valuation, margin pressure and weaker estimates argue for caution.

IBM (IBM) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.

IBM shares were falling nearly 25% after the Company reduced its near-term outlook tied in part to AI-related spending. Levi & Korsinsky is reviewing whether investors received adequate information about IBM's AI growth assumptions before the decline IBM shares were falling nearly 25% after the Company reduced its near-term outlook tied in part to AI-related spending. Levi & Korsinsky is reviewing whether investors received adequate information about IBM's AI growth assumptions before the decline

While the first instinct may be to buy the dip in IBM shares, I'd think twice. It may be difficult for the stock to shake off the label of an AI loser after its poor results.

NEW YORK, July 17, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into International Business Machines Corporation (NYSE:IBM) for potential securities fraud after its significant stock drop. If you invested in IBM, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/ibm-class-action-lawsuit.

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IBM gave away all of its year-to-date gains when it announced weak preliminary earnings for the second quarter. The shortage of memory and storage products won't last forever.

IBM released preliminary second-quarter results a week early, showing revenue of $17.2 billion, up just 1% year over year and below the company's own expectations. CEO Arvind Krishna said clients shifted their capital spending toward servers, storage, and memory in late June to get ahead of expected shortages and price increases.

NEW YORK, July 16, 2026 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of International Business Machines Corporation ("IBM" or the "Company") (NYSE: IBM).  Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext.

The stock is now down more than 28% year to date. The earnings miss was due to a severe shift in spending by IBM's customers into AI memory and servers.