IBM sinks 26% after preliminary Q2 revenue miss and delayed deals

IBM shares fell as much as 26% in early Tuesday U.S. trading after the company unusually pre-announced preliminary second-quarter results ahead of its July 22 earnings call. IBM reported revenue of $17.2 billion and adjusted earnings of $2.93 a share, both below Wall Street expectations, and said some customers redirected late-quarter capital spending toward chips, servers, storage and memory, while some deals slipped and broader cybersecurity concerns distracted buyers. The selloff put the stock on track for its biggest single-day drop since at least 1968 and, according to the newer report, implied roughly $70 billion in market value was erased during the session. Krishna's comments also helped lift cybersecurity stocks including Okta, Netskope and CrowdStrike.