IBM Stock Plunges 26% This Week, Worst Week on Record After Disappointing Q2 Earnings

According to IBM's Q2 earnings report released this week, IBM stock plunged 26% for the week, marking the company's worst week on record. On Tuesday (July 16), the stock dropped 25% in a single day after IBM unexpectedly advanced its earnings announcement, wiping nearly $70 billion from its market value. The sell-off reflected Q2 revenue and profit missing Wall Street expectations.

IBM's infrastructure segment revenue declined 7% in the quarter, with major deals failing to close as scheduled. Software revenue grew only 5%, far below analyst expectations of 12%. Executives attributed the shortfall to execution failures and the company's inability to quickly adapt to changing customer spending patterns as enterprises redirect technology budgets toward AI infrastructure.