US Stock Market Move | Q2 preliminary revenue falls short of expectations IBM (IBM.US) plunges over 25%, the largest single-day drop since 1987.

On Tuesday, IBM (IBM.US) opened sharply down over 25%, marking its largest single-day decline since 1987, now trading at $215.95. On the news front, IBM's preliminary quarterly sales performance announced before the market opening fell short of Wall Street analysts' expectations. In a preliminary performance statement, IBM stated that it expects its second-quarter revenue to be around $17.2 billion, compared to the Wall Street analysts' average expectation of around $18 billion. The statement indicated that the sales of IBM's infrastructure business segment were particularly hard hit, unexpectedly dropping by around 7%. The company stated that it is still reviewing its accounts, and the final performance may differ slightly. IBM's CEO Arvind Krishna stated that in response to industry-wide supply shortages, customers are generally shifting their capital expenditures towards AI servers, data center enterprise-grade NAND storage chip equipment, and high-performance DRAM memory components, weakening their spending and budgets on the company's software products. "These conditions demand flawless execution from our team, and this quarter we made mistakes," Krishna said. "Our adjustments and actions were not swift enough, several large deals did not close as expected, leading to most of the performance shortfall this quarter."