IBM Stock Suffers Worst Drop Since 1987 On Earnings Miss
Krishna admits IBM did not foresee how sharply clients would redirect capex toward servers and storage ahead of price hikes.
- Krishna admits IBM 'did not anticipate the magnitude' of the capex shift toward hardware.
- Infrastructure revenue fell 7 percent while Distributed Infrastructure orders grew 37 percent, a $500 million backlog.
- Software still grew 5 percent and Red Hat accelerated to 11 percent, the letter's bright spots.
Why it matters: A company that cannot forecast its own customers cannot be trusted to forecast the market.
IBM Newsroom — Arvind Krishna's Letter to IBM Investors ↗ · Jul 14, 20267/14/26 · Updated Jul 14